Impact of organizational and contract flexibility on outsourcing contracts

The use of outsourcing continues to grow as a strategy in organizations. Organizations use outsourcing to lower costs and sharpen focus by specializing in the core tasks. This study proposes that firms need to consider both their internal organizational stability and contract flexibility when developing outsourcing contracts in the information systems/technology (IS/IT) areas. Addressing these important factors can assist in obtaining improved satisfaction and better service with the outsourcing project. (C) 1998 Elsevier Science Inc.