An Evaluation of Information Technology Outsourcing Determinants Within the Department of Defense

Each year the Department of Defense (DoD) spends billions of dollars on information technology (IT) outsourcing. However, little formal or academic guidance has appeared that explains how, why, or even when this occurs. This study presents and evaluates several determinants that may impact a decision to outsource information technology systems in the Department of Defense. It begins with the development of a conceptual model, which was created using semi structured interviews and an extensive literature search. This model was then matured into an analytic version by using the Delphi method, which is an accepted methodology to use when insufficient or no applicable data exists, the required data is too expensive to obtain and analyze, or the problem variables and their interaction are not clearly known. The results seem to suggest that while some determinants are more important than others, the decision to outsource IT in the DoD is a multifaceted one. This is consistent with similar research done in the private sector. The results also seem to suggest that in the area of IT outsourcing, the DoD seems to be experiencing much the same evolution the private sector did and that each organization has a slightly different focus and requirement set.

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