Outsourcing as a strategy for IT harmonization

Abstract

The paper deals with the decision process for IT outsourcing as a governance strategy for IT harmonization. IT harmonization is the standardization of IT solutions and IT functionality within former autonomously acting organizational units with independently grown IT departments. A case study shows the migration and implementation of a lead e-government application in the Austrian federal administration, where records management and workflows were previously operating independently in government agencies. Harmonization has been accomplished via a directed outsourcing decision which also supported the process of harmonizing IT governance. Sourcing design has proven to be crucial in that case, as several stakeholders presented different principle objectives. The approach of the outsourcing decision within the case study is analyzed by examining the decision process and interviewing major participants of the project.