Question: A large proportion of major corporations outsource their IT function to specialist suppliers of UIT services such as IBM, EDS (now owned by Hewlett Packard),

A large proportion of major corporations outsource their IT function to specialist suppliers of UIT services such as IBM, EDS (now owned by Hewlett Packard), Accenture, and Cap Gemini. What transaction costs are incurred by these outsourcing arrangements and why do they arise? What are the offsetting benefits from IT outsourcing?

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