Developing a framework for analyzing IS sourcing

This paper develops a framework for the consideration of internal markets as an alternative to information systems (IS) outsourcing. It is based on an assessment of the pros and cons of both outsourcing and of insourcing based on the internal markets approach. It is formulated in terms of the operational, tactical, and strategic impacts of the choice among the alternatives. The framework, and the propositions that are developed from it, should be useful both for researchers, who can use it for developing testable research hypotheses, and for practitioners, who may use it as a basis for developing a comprehensive set of criteria for the evaluation of these sourcing options.