This paper contributes an interpretation of Domberger's theory of The Contracting Organization for use in an IT outsourcing context, then presents a preliminary test of the validity of that theory using data from an Australian survey of 235 senior IT managers. Our conclusion is that Domberger's theory appears to be a useful lens for understanding IT outsourcing, and that further research using purpose-collected data is therefore warranted. Phrased differently, Domberger's four types of benefit of contracting - namely Specialization, Market Discipline, Flexibility, and Cost Savings - appear to be a good way of summarizing senior IT managers' explanations of why their organizations chose to outsource IT. The paper also conducts a preliminary test of the extent to which these four factors explain the purchasing organization's satisfaction with IT outsourcing.
