Summary:

This study examines the decision to outsource the IT platform FISBasis to an external provider. To gain detailed information of the incident and its context, interviews have been conducted with six persons close to the decision process at the time when outsourcing became reality. In order to answer the question of whether the decision was a strategic failure or not, the study derives a decision support framework based on known scientific studies within the area of IT sourcing. The study then discusses the decision to outsource in the light of the decision support framework to see to what degree the decision is in accordance with the framework’s propositions.

The analysis is divided into three separate parts, which all contribute to the overall conclusion. The first part of the analysis shows that the IT platform FISBasis was a suitable candidate for outsourcing. The second part of the analysis indicates that outsourcing was an adequate sourcing alternative – in sense of which contracting type to choose for the candidate FISBasis. The last part of the analysis addresses to which degree the choice of sourcing method for carrying out the outsourcing was suitable for the context it was carried out in. The use of transformational outsourcing method in combination with transitional outsourcing seemed to meet the needs of the context in which the Norwegian Defence Forces were when the decision was made.

The overall conclusion indicates that the decision to outsource the IT platform FISBasis was not a strategic failure, but rather a necessity in order to be able to meet the overall goals of the FISBasis project.