vviewpoints
DOI: 10.1145/1785414.1785427
Technology strategy
and Management
outsourcing Versus
shared services
Two diaMe TriCaLLY opposed perspectives continue to coexist in IT and other busi- ness service functions. One camp argues in favor of
shared services, wherein the IT organization becomes the internal service
provider to the rest of the company.
The other camp promotes outsourcing: the delivery of IT services all done
under one roof but with that roof located somewhere other than at the
company. Proponents do not agree on
which is better. This column examines
the background that led to the adoption of these practices and the reasons
for this disagreement.
Illus TRATIon by CARl WIens
Most readers know about IT out-
sourcing, and many readers are aware
of H. Ross Perot, the Texan who left
IBM to found Electronic Data Systems
(EDS) in 1962. His idea was to offer
technology as a service by not merely
equipping, but also operating, custom-
er data centers. Following his success,
others joined to extend outsourcing
from IT services to a wide array of busi-
ness services in finance and account-
ing, human resources, procurement,
and logistics. Technology—a combi-
nation of computers, software, and
networks—underpins these support
operations.
