Navigating IT channels: Integrate or outsource?

The outsourcing of applications development is becoming more and more important for even the largest financial institutions. While outsourcing is not a panacea, information technology (IT) groups do need to develop explicit strategies distinguishing the functions that will be performed internally from those that are better sourced outside. The focus on outsourcing can help guide IT investments by improving tradeoffs of time and money. Outsourcing can enhance cost efficiency if systems and projects are segmented and the pieces matched to appropriate vendor capabilities.