Does off-shoring IT make good business sense? Proceed with caution!

Lane, Michael and Van Der Vyver, Glen (2006) Does off-shoring IT make good business sense? Proceed with caution! In: 10th Pacific Asia Conference on Information Systems (PACIS 2006), 6-9 Jul 2006, Kuala Lumpur, Malaysia.

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Abstract

IT off-shoring has received much attention in the media for both positive and negative reasons. However, there has been a lack of empirical studies that have critically evaluated the practice of IT off-shoring. This paper reports on a qualitative study of the key factors facilitating and inhibiting the adoption of IT off-shoring by Australian industry. Empirical data was collected in a series of in-depth interviews drawing on the first hand experience of a number of senior business managers and senior IT executives. The findings indicate that organisations are generally positively disposed towards the practice of IT off-shoring but are quite selective in what IT they are offshoring. The findings also revealed that the perceived cost advantages may actually be much lower than expected due to the considerable establishment and management costs associated with IT off-shoring. Furthermore organisations need to also consider the negative consequences such as the potential loss of IP and loss of valuable internal ICT knowledge and capability.


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Item Type: Conference or Workshop Item (Commonwealth Reporting Category E) (Paper)
Refereed: Yes
Item Status: Live Archive
Additional Information: Paper no.95
Depositing User: Dr Michael Lane
Faculty / Department / School: Historic - Faculty of Business - Department of Information Systems
Date Deposited: 29 Oct 2007 02:31
Last Modified: 25 Sep 2013 04:42
Uncontrolled Keywords: IT off-shoring; IT outsourcing
Fields of Research (FOR2008): 08 Information and Computing Sciences > 0806 Information Systems > 080606 Global Information Systems
15 Commerce, Management, Tourism and Services > 1503 Business and Management > 150307 Innovation and Technology Management
15 Commerce, Management, Tourism and Services > 1503 Business and Management > 150305 Human Resources Management
Socio-Economic Objective (SEO2008): B Economic Development > 89 Information and Communication Services > 8902 Computer Software and Services > 890205 Information Processing Services (incl. Data Entry and Capture)
URI: http://eprints.usq.edu.au/id/eprint/3411

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