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IT Sourcing: Examining the Privatization Option in Public Administration

In: The Practice of Outsourcing

Author

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  • Mary Lacity
  • Leslie Willcocks

Abstract

In this chapter the process and content of decision making on sourcing information technology (IT) in two case histories from the United States public sector are examined in detail. We find that outsourcing IT problems, as opposed to tasks, rarely works in either private or public sectors. The findings suggest that both sectors must develop similar IT competencies before considering sourcing decisions. These include fostering relationships with senior management, benchmarking performance, creating shared IT objectives, understanding requirements, diagnosing IT problems, evaluating in-house versus market capabilities, and, in the case of outsourcing, developing competencies in contract negotiation and post-contract management. The major difference between public and private sector sourcing was found to be that public sector agencies faced more environmental constraints, including dictated budgets and requirements, and restrictions on civil servant salaries (see Chapter 6 for a discussion of distinctive public sector contexts).

Suggested Citation

  • Mary Lacity & Leslie Willcocks, 2009. "IT Sourcing: Examining the Privatization Option in Public Administration," Palgrave Macmillan Books, in: The Practice of Outsourcing, chapter 7, pages 159-186, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-0-230-24084-1_7
    DOI: 10.1057/9780230240841_7
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