Prudential risk management of IT sourcing strategies: a case study of an Australian bank

Strong, Brian and Cater-Steel, Aileen and Lane, Michael (2014) Prudential risk management of IT sourcing strategies: a case study of an Australian bank. In: 20th Americas Conference on Information Systems (AMCIS 2014): Smart Sustainability: The Information Systems Opportunity, 7-9 Aug 2014, Savannah, GA. United States.

Abstract

Banks are under market pressure to reduce costs and employ different IT sourcing strategies to reduce IT costs: outsourcing, outsourcing-offshoring, and multi-sourcing. In Australia, banks are highly regulated under the Australian Prudential Regulatory Authority (APRA) which manages implementation of the Australian banking act. We selected a large domestic bank in Australia (WBC) for our pilot study. This paper aims to demonstrate the complexity and risk of the IT multi-sourcing delivery environment within WBC.
We outline an approach to study risk management of IT multi-sourcing that could be applied across the Australian banking industry. After investigating the decision theories that underpin the selection of IT delivery models used within WBC, this study analyses public documents to reveal the trends and effects of outsourcing contracts over the past five years, and compares the alignment of WBC's risk framework with that of APRA to recommend proactive risk management framework to mitigate multi-sourcing risks.


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Item Type: Conference or Workshop Item (Commonwealth Reporting Category E) (Poster)
Refereed: Yes
Item Status: Live Archive
Additional Information: This publication is copyright. It may be reproduced in whole or in part for the purposes of study, research, or review, but is subject to the inclusion of an acknowledgment of the source.
Faculty / Department / School: Current - Faculty of Business, Education, Law and Arts - School of Management and Enterprise
Date Deposited: 19 Jan 2015 04:32
Last Modified: 14 Jun 2017 04:22
Uncontrolled Keywords: offshore-outsourcing; outsourcing; risk management; Australia; banks prudential regulation
Fields of Research : 15 Commerce, Management, Tourism and Services > 1502 Banking, Finance and Investment > 150205 Investment and Risk Management
08 Information and Computing Sciences > 0806 Information Systems > 080609 Information Systems Management
15 Commerce, Management, Tourism and Services > 1503 Business and Management > 150305 Human Resources Management
Socio-Economic Objective: B Economic Development > 89 Information and Communication Services > 8902 Computer Software and Services > 890299 Computer Software and Services not elsewhere classified
URI: http://eprints.usq.edu.au/id/eprint/25645

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