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OUTSOURCING ISSUES Outsourcing can be defined as the process of contracting the firm's Information Systems and Information Technology and other functions to external vendors who specialise in providing these type of services. Companies do this in order to concentrate on their core competencies and capabilities without worrying about their peripheral activities. Outsourcing is done by transferring the residual IS organisation's staff to the vendor who then becomes their de-facto employer. Companies can never manage to fight on all fronts and expect to emerge winners. So to win the market control war they can concentrate on their core activities and generally outsource the rest. This is called Total Outsourcing where companies outsource more than 80% of their functions. Even when the residual IS organisations go in for total outsourcing, they have to retain a small in-house team "which is capable of fulfilling a number of critical roles relating to...

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