Improving ICT Governance by Reorganizing Operation of ICT and Software Applications: The First Step to Outsource

During recent years great attention has been paid to outsourcing as well as to the reverse, insourcing (Dibbern et al., 2004). There has been a strong focus on how the management of software applications and information and communication technology (ICT), expressed as ICT management versus ICT governance, should be carried out (Grembergen, 2004). The maintenance and operation of software applications and ICT use a lot of the resources spent on ICT in organizations today (Bearingpoint, 2004), and managers are asked to increase the business benefits of these investments (Weill & Ross, 2004). That is, they are asked to improve the usage of ICT and to develop new business critical solutions supported by ICT. It also means that investments in ICT and software applications need to be shown to be worthwhile. Basically there are two considerations to take into account with ICT usage: cost reduction and improving business value. How the governance and management of ICT and software applications are organized is important. This means that the improvement of the control of maintenance and operation may be of interest to executives of organizations. It can be stated that usage is dependent on how it is organized. So, if an increase of ICT governance is the same as having well-organized ICT resources, could this be seen as the first step in organizations striving for external provision of ICT? This question is dealt with to some degree in this paper.