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HOSTILE IS OUTSOURCING: THE STORY OF MANUFACT This case study is concerned with issues of Hostile IS Outsourcing. It describes the situation which developed in May 1996 as problems with communication and careful planning within the organisation, resulted in a key department being outsourced. This had many implications which had a negative "knock-on" effect throughout the company. I am going to highlight these and look at issues which may minimise the risks in taking such important decisions. The ManuFact Company is a mid-sized (SME) European company in the kitchen hardware industry. (The company consists of 3500 employees of which 39 of them work in the IS department) It has a total o of 3500 employees, mainly in production and distribution and an IT department with 39 people whose budget is $4 million and a largely mainframe based portfolio. A key person in this company is Smith who was the IS...

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