Options in information systems outsourcing.

Virtually any of the activities required to operate a hospital's information systems department can be outsourced, that is, performed by an outside firm. Outsourcing can be used as a business strategy to optimize resources to attain financial, tactical and strategic goals. Benefits include a smaller IS staff, reduced overhead and cost avoidance particularly in the area of capital equipment purchasing. However, outsourcing IS is not without risks and is not a panacea. It may even bring on its own challenges, particularly in managing expectations of in-house personnel. Risks include loss of control, vendors with little or no experience with the hospital's operations and culture and dependence on vendors when in-house personnel cannot adapt. IS outsourcing hasn't got as much of a track record in health care as in other industries, but with the growing cost and complexity of hospital IS operations, outsourcing seems inevitable.