ABSTRACT
This chapter discusses the first step in the outsourcing or downsizing process: deciding whether to outsource or simplify some of the systems and what functions can be performed advantageously or otherwise made more efficient by vendor organizations. This chapter reviews trends in the use of outside services and conditions that make outsourcing favorable. Computer operations managers must consider their organization’s many functions, the pros and cons of contracting systems work, ways to downsize without outsourcing, sources for guidance and assistance, and finally an example of outsourced computer work that has proven beneficial in a large organization.
