IT outsourcing competency: A capability-based strategic approach to IT outsourcing

IT outsourcing literature focuses on how to develop capabilities to manage outsourcing engagements. This paper argues that these capabilities necessary for the success of IT outsourcing projects should be collectively viewed as a core competency of an organization, which needs to be taken into account when the organization is contemplating outsourcing as an option. The concepts of IT outsourcing capabilities in literatures are examined. A preliminary framework based on the concept of capability levels from eSourcing Capability Model for the Client Organization (eSCM-CL) and the objectives of the outsourcing projects are developed. How this framework can be used to direct empirical research is explored.