Reviewing the outsourcing strategy should be the first step when evaluating the possibility of outsourcing an IT system, because the outsourcing strategy defines the vision, objectives, scope, and approach of outsourcing IT activities and services to external providers. The outsourcing strategy should align with the enterprise’s business strategy, IT strategy, and IT governanceframework, and should consider the benefits, risks, costs, and impacts of outsourcing on the enterprise’s performance, value, and stakeholders. By reviewing the outsourcing strategy, the enterprise can ensure that outsourcing an IT system is consistent with its strategic direction and goals, and that it can achieve the desired outcomes and benefits from outsourcing. According to ISACA’s CGEIT Domain 2: IT Resources1, “the enterprise should have a clear vision of what it wants to achieve from outsourcing and how it will manage the relationship with the service provider.” Furthermore, according to ISACA’s article on IT Outsourcing2, “the first step in developing an effective IT outsourcing strategy is to understand the business drivers for outsourcing and align them with the enterprise’s overall business objectives.” Therefore, reviewing the outsourcing strategy is the best way to start evaluating the possibility of outsourcing an IT system. References:

IT Outsourcing - ISACA

IT Governance: Definitions, Frameworks and Planning - ProjectManager

What is IT governance? A formal way to align IT & business strategy | CIO

CGEIT Domain 2: IT Resources