FIRMS THAT CHOOSE OUTSOURCING - A PROFILE

A nationwide survey of senior Information Systems (IS) managers in U.S. organizations reveals several structural and managerial characteristics of organizations that outsource one or more IS activities. The characteristics include organizational position of the IS manager, CEO involvement in IS (e.g., presence on an IS steering committee and personal use of computers), and IS performance. Outsourcing activities examined are hardware (e.g., network, PC, workstation, minicomputer, and mainframe maintenance and support); software (e.g., contract programming and software support/training) and comprehensive management activities (e.g., facility management and systems integration). Apparently CEOs who are heavily involved in a steering committee are the least likely to outsource. CEOs that actively use computers are more likely to outsource specific hardware and software activities, whereas CEOs who do not personally use a computer are more likely to outsource comprehensive management activities. In addition, the distance between the CEO and the IS manager is a factor: further distance makes it more likely that IS functions are outsourced. Industry leaders are among the smallest proportion of outsourcing firms, whereas close followers are the largest.