Preliminary study to investigation the determinants that effect IS/IT outsourcing

Abstract

Due to developments in information communication technologies (ICT), globalization, and increase competition, Information Systems / Information Technology (IS/IT) outsourcing has become a pressing need for many organizations across the world. The process involves service provider and service receiver organizations. A study has been undertaken to examine the issues associated with the process of IS/IT outsourcing from the perspective of both the parties (service provider and services receivers) in the dynamic business environment. Issues have been brought up from the literature and factors have been identified from the state-of-art practice of IS/IT outsourcing. Empirical studies have revealed that there are some significant differences between IS/IT Outsourcing and non-IS/IT outsourcing, even the rationales in decision making are altogether different (Thai and Kim, 1998), (Useem and Harder, 2000). Due to renewed interest in IS/IT outsourcing by leading multinationals for a variety of reasons including cost cutting to gain competitive advantage, the firms participated in the study, showed interest in the outlining the issues which they found most relevant in their respective business contexts. Research issues have been explored take into account perspective of outsourcer as well as of the clients. Therefore, an attempt has been made to establish the relationship of the various factors involved in the process.