ABSTRACT

Information technology outsourcing (ITO), or the plethora of names under which it is also known (including contracting out, partnering, FM, co-sourcing and many others), is handing over IT activities and assets to third party management for monitored outcomes. ITO has outlived the five-year period typical of a management fad and is now regarded as a standard IT management tool. As such, global market revenues have increased from $US9 billion in 1990 to $US154 billion by 2004 and a projected $US190+ billion by 2006 (Kern et al., 2002a). This compares with research company IDC's estimates for all outsourced services of £1200 billion by 2006.