Contract management strategy

Abstract

There are many different ways in which internal service provision (known as in-house sourcing or ‘insourcing’) and market provision of services (outsourcing) operate. Depending on the degree of outsourcing performed in an organization, outsourcing can entail a profound change in strategic and operational mechanisms. As earlier chapters established, especially Chapter 4, the use of outsourcing does not imply less effort in managing IT, only a different emphasis. Outsourcing changes, or should change, the emphasis from managing day-to-day operations to a focus on specifications of service delivery and from staff management to planning, evaluating, and relationship management.