Old and New Paradigms for IT Services Offshoring

This article presents some new conceptual and interpretative paradigms concerning offshoring Information Technology services, in the light of the most recent market trends. In the current competitive scenario, IT structures are increasingly asked to “participate” in the development and innovation of business, rather than being merely a “support” for the value chain activities, managed merely on the basis of technical and economic efficiency. We start by confuting two traditional concepts: first, that only activities which are quite distinct from the core-business can be candidates for outsourcing, and secondly that the advantage to be derived from offshore outsourcing is above all a matter of costs. What is meant by “success” in this new perspective? We analyse the main critical factors in an offshoring contract enhancing value creation and business strategy. Particular attention is paid to the analysis of the main drivers of solution design and ongoing management in IT offshoring strategies.