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Information Resources Management Association
Advancing the Concepts & Practices of Information Resources Management in Modern Organizations

Business Strategies for Outsourcing Information Technology Work

Business Strategies for Outsourcing Information Technology Work
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Author(s): Subrata Chakrabarty (Texas A&M University, USA)
Copyright: 2009
Pages: 6
Source title: Encyclopedia of Information Science and Technology, Second Edition
Source Author(s)/Editor(s): Mehdi Khosrow-Pour, D.B.A. (Information Resources Management Association, USA)
DOI: 10.4018/978-1-60566-026-4.ch080


View Business Strategies for Outsourcing Information Technology Work on the publisher's website for pricing and purchasing information.


Firms pursue various strategies to exploit resources and capabilities and gain a competitive advantage (Porter, 1996). Interfirm relationships are collaborative agreements between organizations (Chakrabarty, 2006a; Whetten, 1981), and firms need to be careful in adopting suitable strategies to deal with interfirm relationships (Chakrabarty, 2007b). Interfirm relationships represent a sort of trade-off that organizations must make, whereby, in order to gain resources of other organizations, an organization must relinquish some its independence because the relationship also brings certain obligations with it (Whetten, 1981). Top management strategists might find their commitments to other firms as a sort of liability, and therefore, a serious evaluation of whether the benefits from the interfirm relationship outweigh the inevitable costs is needed before entering into interfirm relationships (Whetten, 1981).

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