ABSTRACT
This chapter begins by defining outsourcing, clarifying the difference with offshoring and providing examples of the numerous ways outsourcing can be used for Accounting Information Systems. Outsourcing of information systems activities continues to grow. Companies regularly use a combination of employees, local vendors and offshore providers for their information systems services. Outsourcing takes many forms and is used for many different types of activities, including Accounting Information Systems. Outsourcing can be used to develop and implement new Accounting Information Systems or to operate them once they are implemented. When managing outsourcing contracts for Accounting Information Systems it is important to consider two aspects of contract management: formal and informal. A significant body of knowledge on outsourcing has been developed as outsourcing became commonly used. However, the forms outsourcing can take are increasingly complex. The proliferation of cloud computing has exposed a new challenge with Accounting Information System outsourcing.
