Managing IT Outsourcing

Subject ISYS90055 (2013)

Note: This is an archived Handbook entry from 2013.

Credit Points: 12.50
Level: 9 (Graduate/Postgraduate)
Dates & Locations:

This subject has the following teaching availabilities in 2013:

Semester 2, Parkville - Taught on campus.
Pre-teaching Period Start not applicable
Teaching Period not applicable
Assessment Period End not applicable
Last date to Self-Enrol not applicable
Census Date not applicable
Last date to Withdraw without fail not applicable


Timetable can be viewed here. For information about these dates, click here.
Time Commitment: Contact Hours: 12 hours per month, 36 hours in total.
Total Time Commitment:

10 hours per week, 120 hours in total


Students who are enrolled in the two year 200 point Master of Information Systems must have completed 50 points of study to enrol in this subject.



Recommended Background Knowledge:


Non Allowed Subjects:


Core Participation Requirements:

For the purposes of considering request for Reasonable Adjustments under the Disability Standards for Education (Cwth 2005), and Students Experiencing Academic Disadvantage Policy, academic requirements for this subject are articulated in the Subject Overview, Objectives, Assessment and Generic Skills sections of this entry.

It is University policy to take all reasonable steps to minimise the impact of disability upon academic study, and reasonable adjustments will be made to enhance a student's participation in the University's programs. Students who feel their disability may impact on meeting the requirements of this subject are encouraged to discuss this matter with a Faculty Student Adviser and the Disability Liaison Unit:


Dr Sara Cullen


Sara Cullen


Subject Overview:

This subject provides a practical set of principles, tools and techniques for client organizations to follow when managing ICT outsourcing. Topics discussed are as follows:

  • Architect Phase 1: Deciding why, what and how to outsource
  • Architect Phase 2: Design of a deal including the contract, scorecard, Service Level Agreements and KPIs
  • Engage Phase: Choosing supplier/s, competitive bidding, negotiation
  • Operate Phase: Mobilisation, contract management, governance, relationship management
  • Regenerate Phase: Disengagement/exit (types and planning), next generation options

Upon completion of this subject, students should be able to perform effectively in an ICT contract management role and be able to:

  • Describe a range of managerial issues regarding outsourcing
  • Explain the outsourcing lifecycle and corresponding ebbs and flows of bargaining power
  • understand the practical difficulties and realistic success strategies for outsourcing
  • Justify decisions in what and how to outsource IT
  • Recognize personal negotiation styles and how that influences approaches to outsourcing as well as results
  • Demonstrate a practical ability to write specifications to a commercial standard expected of an employer
  • Independently research and argue disparate beliefs/theories of outsourcing
  • Empathise with challenges facing both outsourcing customers and providers and form pragmatic solutions
  • A 2000 word report and critique in the first half of semester (10% each for 20%)
  • A 4000 word report and presentation in the second half of semester (25% each for 50%)
  • And a 2-hour written exam in the examination period (30%)

Prescribed Texts: None
Breadth Options:

This subject is not available as a breadth subject.

Fees Information: Subject EFTSL, Level, Discipline & Census Date
Generic Skills:

Students should have honed their generic skills such as clear thinking, improved reading and writing, enhanced ability to work in a team and presentation skills.

Links to further information:
Related Course(s): Master of Information Systems
Master of Information Systems
Master of Information Systems
Master of Philosophy - Engineering
Master of Science (Information Systems)
Ph.D.- Engineering

Download PDF version.