IT Outsourcing: Asia Pacific Case - Australia

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IT outsourcing market has been significantly growing since Eastman Kodak's landmark decision to outsource IT in 1989. Outsourcing itself is already known as a practical business strategy in the competitive global economy. However, IT outsourcing is far more complex and multidimensional than most other types of outsourcing (Kern and Willcocks, 2002). Lacity et al (1996) highlighted some traits that make IT outsourcing distinctive such as IT is a heterogeneous function with complex activities; IT capabilities evolve at a dizzying rate making outsourcing formed with uncertainty; there is no simple basis for measuring the economies of IT activities and outsourcing; and large IT switching costs.