Insourcing for IT organizations

Most IT organizations are structured to becomes a monopoly within the firm and like monopolies are wont to do, they start taking their position for granted. They become large, expensive and slow in response to their customers i.e. the business. Arguably, this hurts the firm’s competitiveness in a big way.
David Rasmussen in Cutter [...]

Stakeholder value and not business value

The classical view of a firm has been that is a profit maximising organization operated by professional managers on behalf of the shareholders.All the activities of the professional managers on behalf of the firm are geared towards maximising the shareholder value.
A more balanced view is that a firm is more than simply a financial vehicle [...]

False Economy

Blackburn Rovers finished 6th in the Premier League in 2002-2003. At the end of the season, they sold Damien Duff, their main attacking threat, to Chelsea for £17.5 mn. Sounds like a good deal, right ?
Subsequent season, Rovers finished 15th. They lost the income they would have received by participating in the UEFA cup and [...]