Our book takes the issue of IS sourcing one stage further than has traditionally been discussed. The book reports on a follow-up study to our outsourcing research which involved six in-depth case studies exploring what the alternatives to outsourcing are, and whether they work. The book addresses a pressing problem facing IS directors and corporate management - should they or shouldn't they outsource their IS function? And if the decision is no, what alternative strategy should they adopt? We found that one major myth is that outsourcing vendors save their clients money through economies of scale. In fact, they actually reduce costs by implementing efficient managerial tactics like data center consolidation, formalized chargeback systems, standardized software packages, etc. We have identified 11 generic cost reduction strategies which internal IS departments could implement to reduce costs. These strategies are explored at some lenght in the book. We also note that although internal IS departments can replicate vendor cost reduction tactics, they may be implemented only if senior management empowers them to do so since many of the strategies will result in reduced customer service. We discuss this so-called "cost/service dilemma" facing the IS manager as well as the various options available and their likely consequences. Lastly, the book explores selective sourcing, which is the intelligent combination of both outsourcing and insourcing. With selective sourcing, IS activities which are deemed "commodity" are outsourced, while those perceived as "strategic" are insourced. Those activities which are outsourced must be properly managed with sound contracts and service level reviews to ensure that expectations are realized.