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Whitepaper: Flexibility And Cost In Information Technology Outsourcing: Balancing Opposing Goals

by Texas Tech UniversityJan 01, 2008

The growth in the importance of IT outsourcing arrangements combined with the rate of failure of such arrangements makes it imperative to address issues of contracting in the IS literature. This paper published by Texas Tech University examines the contract directly and shows how the costs stipulated in the contract affect the nature of the outsourcing relationship. The work develops a mathematical model of IT outsourcing contracts to explore the relationship between costs of the anticipated IT needs and the costs of additional resources in the face of changing IT needs.