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Outsourcing News : Article

Identifying the right outsourcing strategy

For far too long, the issue of outsourcing versus insourcing has had the proportions of a religious debate between often fanatical supporters and opponents of both

But this highly partisan passion is not helpful. There are no absolute rights and wrongs when it comes to how to source IT.

“Sourcing is not a strategy in itself – it has to be the business strategy that drives the sourcing decision,” says Bob Carlson, former group head of IT and telecommunications at HSBC, with 25 years experience at the bank – a major user of outsourced IT.

"Business strategies can vary hugely – and therefore so will IT sourcing strategies. For example, a key part of HSBC’s business strategy is to acquire other companies, and integrate their customer base, which in turn requires integrated IT systems, whether those systems are sourced in-house or out, onshore or offshore,” says Carlson. “Contrast this with GE, whose business strategy is buying and selling businesses which they therefore do not want to integrate.”

Read entire article on ComputerWeekly.com

Posted: Thursday, November 30, 2006

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