Copyright 2002 by
Prentice Hall, Inc.
8-7
nFocus on core
businesses: In the 1980s, this led to huge amount of merger and acquisition activity.
nShareholder value: Companies were “priced” based on their shareholder value, that is, their discounted cash flow, as a result of high-yield bonds that allowed a few people to buy a company and leverage it with debt.
nManagement must stress value, they must consider outsourcing in all their nonstrategic functions.
Outsourcing Information Systems Functions: Driving Forces