ABSTRACT
Contracting out is something most organizations resort to, not only those involved in information technology (IT), simply because very few, if any, organizations have all the resources and the knowledge required to develop, enhance, maintain, deliver, and support their products and services. Even more so now, as a result of the new trend in outsourcing, which can be considered a form of contracting out. Where contracting or subcontracting usually implies a specific time limited task, outsourcing is more often associated with activities to be performed over a longer period. For instance, a company will contract out or subcontract the development of a system, then outsource the maintenance and operation of that system. Outsourcing is commonly referred to in connection with effectiveness and cost-saving measures, allowing an organization to focus on what it does best, where contracting out is more often referred to in connection with knowledge, expertise, and resources that must be acquired externally by the contracting organization.
