Business strategies and IT outsourcing: the case of CompuNet AG

This case describes the strategic challenges faced by CompuNet AG in 1995. After a phenomenal expansion from being a small IBM reseller to becoming a leading multi-vendor systems integrator in Germany, the company suffered, in the 1994/95 fiscal year, a dramatic decrease in profits.After a company overview and a description of CompuNet's management structure, the case analyzes the critical factors (both internal and external) that led to the company's success. These include winning prestigious projects, a remarkable public relations campaign, as well as the ability to adapt to rapidly changing customer demands and to manage the increasing business complexity.The case then focuses on the business and management factors that led to the new corporate results. It concludes by raising some issues concerning the business strategy that the company should follow in order to secure a better future in an increasingly competitive environment.