Reference no: EM13326901

A large US organization--a leader in its field--decided to outsource almost all of its IT operations "to gain more agility." It made arrangements with several highly regarded domestic IT service providers to hire thousands of its IT staff who otherwise would be laid off. In return, it agreed to give these service providers multi-year outsourcing contracts. Seven years later, it reversed its decision and said it will seek to hire back former IT staff as well as hire new staff. It said its budget "will move from 90% outsourced to 90% in house." Today, with the growth of cloud computing, some organizations are considering outsourcing almost all of their IT operations to a cloud service provider. There are others that are considering moving most of their IT operations to an applications management service provider that does not use the cloud.

Your Question.

Many organizations outsource specific applications. Few organizations outsource essentially all IT operations, though more are considering that possibility. Assuming the IT services providers are highly regarded and are located in the USA, what impact if any does outsourcing almost all of the IT operations likely have on the success of IT projects for the organization that does the outsourcing? Explain your answer and give details as needed to illustrate your point(s).