Outsourcing is the use of external agents to perform activities
that were previously performed within the organization. IS
outsourcing has grown rapidly to somewhere between 29% and
47% of the overall $180 billion outsourcing market in 1998, depending
on whether one includes Internet and internal networks
[10]. Because IS is the third largest corporate expense category
and nearly 50% of U.S. capital expenditures by business are in
IS/IT, the potential for outsourcing is huge.