Ruediger Weissbach Copyright 2003, Idea Group Inc. Copying or distributing in print or electronic forms without written permission of Idea Group Inc. is prohibited.
AbstractThis chapter introduces an alternative concept against the dominating trend of a complete outsourcing of IT services, especially in small and medium-sized enterprises (SME). It argues that the undiscriminating adoption of this trend tends to reduce IT on a cost factor and neglects the importance of specific IT knowledge for the continuous improvement of business processes. Also, it neglects the importance of a "communication interface" between the IS users on the one hand and the software development and IT production on the other hand. In opposition to leading management trends, this chapter will present an approach that bases on an internal competence centre for IS and that demands a steady communication between the IT staff and the various departments. In this approach, only selected IT services are externalized and the continuing growth of specific IS knowledge is essential. This approach was developed since the end of the 1990s at the building society, with about 100 employees, in which the author is working.
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