Outsourcing IT in an Organization Outsourcing

2012 45th Hawaii International Conference on System Sciences, 2012

Outsourcing is a well-accepted and commonly used business practice. Practitioners and scholars acknowledge that there are not only benefits but also risks involved in the external production of company services. But are the risks the same for different types of outsourcing?

International Journal of Information Management, 2005

The aim of this paper is to explore the reasons that lead to Information Systems outsourcing in the largest Spanish firms. Our paper takes as its starting point previous literature on Information Systems and tries to analyse if those reasons are related to the outsourcing level as well as to the different characteristics of the firm and its Information Systems department. With this aim, a survey was made among Information Systems managers in those firms. The results show that outsourcing gives the firms the possibility of enhancing their Information Systems services and departments.

The purpose of this paper is to investigate human aspects of outsourcing and its impact on employees and organizational performance. This study is based on a questionnaire survey conducted in Saudi Arabia. Based on an extensive review of literature, the paper uses empirical research to analyse employees‟ attitude towards outsourcing. Results based on the analysis of data from 178 firms in Saudi Arabia indicate that employees largely perceive outsourcing as a positive development. Limitations of this paper relate to the relatively small size of the sample. Findings have several practical implications for small start-up firms and even larger firms that are deciding to outsource IT function in the Arabian Gulf region. The results provide managers with evidence supporting the benefits of IT outsourcing. This paper makes a valuable contribution given the fact that there are only a limited number of comprehensive studies dealing with the assessment of employees‟ attitude towards outsourcing IT functions. Most previous studies have looked into business aspects of outsourcing in IT function. *To whom all correspondence should be addressed.

Abstract: The present paper focuses on different types of HR functions outsourcing and the factors which need to be considered before public sector go for outsourcing of HR Functions. A review of available literature was done in order to understand the risk and benefits of outsourcing HR Functions that need to focus on their core business activities and still establish and maintain good HR policies and to explore the factors that affect the HR outsourcing decision with special emphasis on a proper cost benefit analysis of HR functions outsourcing. The findings of the paper implicitly point out that the decision of HR outsourcing is contingent upon factors like availability of adequate resources, flexibility, affordability and acceptability. The paper also suggests a systematic process & certain pre-requisite to successfully execute HR Functions outsourcing. Keywords: Human Resource Functions, Outsourcing, Public sector, availability of adequate resources, flexibility, affordability and acceptability.

growth, 2008

The Malaysian government has worked together with non-governmental entities to develop and operate internal management systems as well as deliver public services to citizens. Much attention has been given to the computerization of government ministries and agencies to improve the government's capacity to carry out its tasks and cope with the future challenges in order to achieve performance goals. The aims of this research are to determine the ICT services that are currently being outsourced and to describe the inherent risks, issues and challenges in ICT outsourcing in the Malaysian public sector. The findings from this research showed that network services is the most common ICT services activity that is being outsourced and that outsourcers who do not comply with contract has the most influence on ICT outsourcing inherent risks. The main issue raised in ICT outsourcing is the inappropriateness of ICT projects being outsourced. Through the findings, public sector organizations would be able to identify the most common ICT services outsourced, analyse the inherent risks, and address the issues that are being raised. In so doing, the potential impact of failure can be anticipated and dealt with accordingly.

2007

Globally, financial service providers (FSPs) face greater competition from national and international banks and specialized financial service firms such as card services, money transfer companies, and new electronic and mobile banking firms. In response, FSPs must consider innovative business models to survive and grow their operations. This paper analyzes outsourcing theory, reviews its potential role in the financial services industry, and provides strategic and operational guidance for FSP managers.

2005

Business Process Outsourcing-Chapters 1&2and References, 2017

ABSTRACT The study evaluated Business Process Outsourcing(BPO): A Panacea For Organizational Effectiveness in Zenith Bank Plc. The objectives of the study were to assess the nature of relationship between business process outsourcing(BPO) and competitive advantage, to ascertain the extent to which business process outsourcing affect organizational performance and to ascertain the extent to which banks apply business process outsourcing. The population of the study was represented by total workforce of Zenith Bank Plc in six of its branches in Lagos Island. The population size was 340.The sample size was determined using Taro-Yamene’s Formular and it was 184.The actual sample size based on those that completed and returned their questionnaires was 172.The research design was purely survey and descriptive in nature.A random sampling technique was adopted so as to allow all respondents actual chance of participating in the study. A structured questionnaire was designed and used to elicit information from the respondents. The use of structured questionnaire(research instrument was necessitated by the fact that it generates high response rate and it has ability to reduce incidence of bias. The reliability of the research instrument was tested using spearman rank order correlation and Cronbach’s alpha. The Cronbach’s alpha of 0.73 was obtained indicating that the instrument is valid and reliable. The data obtained through the use of research instrument were analyzed using frequency and percentage. The hypotheses were tested using Pearson product moment correlation coefficient, regression analysis and chi-square(X2).Specifically, SPSS version 22 was used in analyzing the data. The findings established were that there is significant relationship between business process outsourcing(BPO) and competitive advantage., there is significant effect of business process outsourcing(BPO) on organizational performance and banks apply business process outsourcing(BPO).It is therefore a known fact that the importance of outsourcing in organizations and especially the banks can not be emphasized. The review of extant literature revealed that the banks both in Nigeria and abroad have adopted business process outsourcing with a view to reducing cost ,improve their services and gain competitive advantage. Zenith bank in which the study was conducted adopts business process outsourcing(BPO) as a strategy like GT-Bank Plc and First Bank Plc in which earlier studies were conducted. Based on the data analysis and findings established it can be concluded that business process outsourcing(BPO) can facilitate organizational effectiveness. It can also be concluded that BPO can be used a tool for enhancing performance of organization and that Nigerian Banks apply BPO. Based on the conclusions drawn we offered the following recommendations: organizations including banks should use business process outsourcing as a strategy to achieve better corporate bottom line, organizations should see reason to outsource some of their back office and front office functions so as to reduce costs, improve quality of their services and outperform their competitors in the same industry , in this period of recession and for the Nigerian banks to put a stop on sacking of their staff business process outsourcing(BPO) comes in handy and should be upheld as a tool for cost reduction.

Industrial Management and Data Systems, 2005

Despite the considerable growth of Information Systems (IS) outsourcing in recent years, this trend is still the object of strong criticism. This study has as its aim to show the main risks computer outsourcing entails in the case of the largest Spanish firms. In order to achieve that aim, we have reviewed the previous literature on this topic and later analysed the results of a survey carried out using a questionnaire that was answered by 357 firms.