Information is critical to an organization's performance in today's knowledge based economy—and information systems have become a primary resource. The management of information systems in organizations is currently undergoing a transformation. Outsourcing, an integral part of corporate strategy, is now being adopted as an approach to manage information systems. This has resulted in the spawning and rapid growth of the information services industry. This article reviews this new trend in the management of information systems and evaluates its implications for management.
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