The purpose of this paper is to study the different facets of the strategic perspective of information systems (IS) outsourcing, compare strategic IS outsourcing with traditional IS outsourcing and identify research opportunities.
This paper is based primarily on a review of the literature.
IS outsourcing is now an accepted practice and the market is growing regularly. The initial hype surrounding IS outsourcing has died out and there is now a more rational approach towards outsourcing with an increasing emphasis for a strategic approach towards IS outsourcing rather than just a cost‐cutting motivation.
The paper clarifies the definitions of IS outsourcing and strategy, taking into consideration the evolution of the definitions before comparing strategic IS outsourcing with traditional IS outsourcing. The paper is concluded with identification of future research opportunities in the field of strategic IS outsourcing.
