In 1997, the government of Issy-les-Moulineaux, a suburb of Paris, made a revolutionary decision: to outsource its entire information technology (IT) infrastructure to Euriware, a 10-year-old Paris company that was one of France’s first outsourcing firms. What made it notable was its role in transforming Issy-le-Moulineaux into what Mayor Andre Santini, a former French Minister of Communications, calls a “digital city.” In the mid-1990s, Mr. Santini had already launched a campaign to lure technology companies into the area and make high-tech the backbone of the economy. The decision to outsource the city’s IT was consciously made in order to speed up the pace of technology innovation. It proved to be a smart move.
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