The objective of this study is to analyse IT Outsourcing as a strategic weapon or not for the organisations, we will start with a history overview mentioning the importance of "Kodak Effect". After that we will have a discussion about Outsourcing in general using one possible classification as Selective Outsourcing, Value Added Outsourcing , Cooperative Outsourcing and then we will focus in the Advantages or Disadvantages to Outsource.
In terms to discuss if IT Outsourcing is strategic or not we will present different points of view from supporter's and opponents to this kind of Outsourcing. An overview of the effects on the Macro and Micro Level is also included.
In our days Information Systems (IS) Outsourcing it's a common concept that all of us have already heard something about. The Big Boom of IS Outsourcing started with the "Kodak Effect ".
Outsourcing of Information Systems it is a reality since 1963 when "Ross Perot with his company Electronic Data Systems signed an agreement with Blue Cross of Pennsylvania for the handling of its data processing services".
(Dibbern at al., 2004)
The cases of IS outsourcing continued thought the years until 1980s when Kodak have made a successful " strategic alliance" with is IS partners led by IBM, DEC and Business Land to outsource its information systems. From this moment on no longer was possible to say that "IS is strategic and hence cannot be turned over to a third party ", because if Kodak a renowned company who considered IS to be a strategic asset and was outsourcing it in a successful way, then others could follow the same steps. This really happened like for example with: General Dynamics, JP Morgan, BP, and many others around the world. (Dibbern at al., 2004)