For decades outsourcing has been growing with double-digit percentages. Different types of outsourcing have emerged, including
Business Process Outsourcing and Global Sourcing. Furthermore, the focus of IT outsourcing partnerships is slowly shifting from
efficiency to innovation.
Key to maintaining this growth, and making outsourcing a success for both parties, is governance. Weill and Ross, in their 2004
book 'IT Governance', define it as 'specifying the decision rights and accountability framework to encourage desirable behavior
in the use of IT'.
While adequate IT governance needs to be applied by any service recipient, it is unthinkable having a governance structure in
place in which external service providers do not play a role. A co-operation model has to be implemented, which we have called
Demand Supply management.
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