The Role of IT Architecture in Outsourcing Relationships

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Our analysis and the outsourcing literature suggest that utility computing will shift firms’ objectives for outsourcing from a cost emphasis to an emphasis on strategic agility. New technology capabilities will introduce some valuable opportunities to cut costs, but firms are more likely to pursue outsourcing because it better positions them to seize strategic business opportunities. Utility computing facilitates strategic agility by making available computing services and business process components on a when-needed, as needed basis.

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