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  3. Managing IT Outsourcing

Managing IT Outsourcing (ISYS90055)

Graduate courseworkPoints: 12.5On Campus (Parkville)

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Year of offer2019
Subject levelGraduate coursework
Subject codeISYS90055
Availability(Quotas apply)
Summer Term
FeesSubject EFTSL, Level, Discipline & Census Date


Outsourcing has become a routine part of management, yet it remains far from easy. In general, the concept of using external organisations (whether domestic or offshore) is considered an efficient and logical way to get things done, and is indeed widely accepted in many sectors of the economy. However, the learning curve is significant, it involves considerable hard work by both parties on a daily basis, and the results are highly dependent on the capabilities of the organisations involved. This subject focuses on the crucial activities that make a difference between success and disappointment.


This subject provides an overview of both the theory and practice of managing outsourcing throughout the lifecycle.

Topics discussed are:

  • Architect Phase: Deciding what and how to outsource. Designing a deal, developing a Contract Scorecard, Service Level Agreements and Key Performance Indicators, pricing, and the contract
  • Engage Phase: Competitive bidding, choosing supplier/s , negotiation, due diligence
  • Operate Phase: Mobilisation, governance and contract management, relationship management
  • Refresh Phase: Disengagement (exit), next generation planning.

Intended learning outcomes

Intended Learning Outcomes (ILOs)

On completion of this subject the student is expected to:

  1. Describe a range of managerial issues regarding outsourcing.
  2. Explain the lifecycle and corresponding ebbs and flows of bargaining power.
  3. Understand the practical difficulties and realistic success strategies for outsourcing.
  4. Justify decisions in what and how to outsource.
  5. Recognize personal negotiation styles and how that influences approaches to outsourcing as well as results.
  6. Empathize with challenges facing both purchasers and providers and form pragmatic solutions.
  7. Demonstrate a practical ability to write an SLA to a commercial standard.
  8. Independently research and argue disparate beliefs/theories of outsourcing.

Generic skills

On completion of this subject, students should have developed the following generic skills:

  • Logic, practical long-term thinking
  • Results-orientated and economic-effect cognition
  • As well as writing and presentation

Last updated: 2 January 2019