1. JP M ORGAN C HASE MOVES FROM OUTSOURCING TO INSOURCING Adams was key in the decision to insource IT at JP Morgan Chase and offers his observations: The cancellation was driven mainly by the merger with Bank One, which made the combined bank very large. Outsourcing of major parts of mission-critical technologies is not a best solution for a large firm. Technology development should be in-house;support services can be outsourced. Four criteria were used to determine what and how much to outsource: i. The size of the company (should be large enough to attract good IS (Information System) employees. ii. Cost of outsourcing vs. cost of insourcing iii. The interest level of top management to have and properly manage IT assets iv. Financial arrangements of the outsourcing.

2. CONTINUE It may be difficult to align business and technology objectives when large- scale outsourcing exists. The insourcing includes data centers, help desks, data processing networks, and systems development. Buying technology directly from vendors saved the bank a consederable amount of money (10 to 15 percent).

3. MANAGERIAL ISSUES Aligning IT strategy and business strategy Organizing for effective planning Initiating IT strategy Undertaking the IT strategic planning process Dealing with outsourcing and offshoring