The Impact of IT Outsourcing on Technology Based SMEs in UK Abstract: A Systematic Investigation
78 Pages17266 Words369 Views
Added on 2019-10-12
About This Document
The main thrust behind this paper involves to develop over the existing research through identification of the problems and issues that are specific to the UK outsourcer by giving an evaluation of present academic literature and review on outsourcing of Information technology relating to the major frameworks and also investigating the preset attitude of the outsourcer. The main thrust behind this paper involves to develop over the existing research through identification of the problems and issues that are specific to the UK outsourcer by giving an evaluation of present academic literature and review on
The Impact of IT Outsourcing on Technology Based SMEs in UK Abstract: A Systematic Investigation
Added on 2019-10-12
ShareRelated Documents
Running head: IT OUTSOURCINGDISSERTATIONTo investigate the impact of IT outsourcing on Technology based SMEs in UK
1IT OUTSOURCINGAbstractSmall business in United Kingdom (UK) are highly engaged in the Information Technology (IT) outsourcing due to its huge advantages. However, very less number of academic research and studies are done in this phenomenon and aspect. One of the main uncertain build of IT outsourcing involves the cultural variation. A system of proposals was mainly tested through case studies and analysis of three Small scale enterprises that were based in England to get to know about the depth of particular changes and challenges for all micro firms and small companies who were engaged in the IT outsourcing. The cultural differences played a significantpart in result of these projects (Agarwal, et al., 2006). Outsourcing the Information technology is considered as a well formed and executed part of the UK based small scale enterprises. Outsourcing of the information technology development and support is a widespread and critical part of globalized United Kingdom as well as other countries’ economies. In United Kingdom, many national small scale enterprises such as Southern Business Technologies consistently outsource their IT services to their outsourcing vendors which is getting services and goods fromthe outside suppliers. It is thought and considered that Information technology outsourcing is encouraged through cost cutting in the Information Technology department (Al-Qarim, 2003). However, the latest drifts suggest that the concept of outsourcing involves improving the usage of all internal service and resource satisfaction. According to authors Loh & Venkatraman (1992), outsourcing the functions of IT to the providers of external services is one through acquiring strategic, technological and economic advantages. In this paper, it has been proposed that main and core drivers and reasons for outsourcing the IT is being matured and developed from being completely cost driven to strategic business practices. The main reasons and cause to outsource include: technological, economic and strategic benefits, core business activities and
2IT OUTSOURCINGcompetitive pressures (Agarwal, et al., 2006). The thesis considers reasons to outsource from perspective of UK and relationship between service quality and satisfaction from the perspective of outsourcer. According to Dahlberg & Nyrhinen (2006), service quality and satisfaction are thesignificant factors to outsource and each of it have proposed various factors which contribute towards decision to change vendor, continue with an outsourcing contract and to back source (Ang, 1998). The main thrust behind this paper involves to develop over the existing research through identification of the problems and issues that are specific to the UK outsourcer by givingan evaluation of present academic literature and review on outsourcing of Information technology relating to the major frameworks and also investigating the preset attitude in UK corporate culture for outsourcing which includes offshoring portion of the business of company (Applegate, et al., 1991). This thesis makes use of the exploratory research for determining the suitable design of research, methods of data collection and selecting the subjects for this researchpaper. The study which is collected from the data using various sources such as questionnaires, surveys, interviews, exploratory research and literature are combined for the analysis (Apte, et al., 1997). Many hypothesis are formulated and then tested and checked as opposed to the collected data by making use of quantitative methods like causal method which was employed for investigation of relationship between satisfaction and productivity of Small Scale and Medium scale enterprises in UK and outsourcing variables. The hypothesis of the research are onthe basis of various personnel in the company having varying criteria in the outsourcing context for success and aggregate satisfaction through outsourcing is associated with successful perception (Applegate, 1991). Outsourcing satisfaction is related and associated to the outsourcing which is seen as fruitful and also working well. However various parties of the organization may be disgruntled with arrangement. Few of the components and elements that
3IT OUTSOURCINGmay affect the intensity of satisfaction with the outsourcing are quality of services, the association developed and formed between vendor and outsourcing company, and cost to switch the vendors. The thesis also proposes that core reason behind outsourcing the IT services is shifted to various factors like managing the resources to cost considerations (Ang, 1998).
4IT OUTSOURCINGTable of ContentsAbstract............................................................................................................................................1Introduction......................................................................................................................................5Research Aim...............................................................................................................................8Research Question........................................................................................................................8Objectives of Research.................................................................................................................8Achieving above objectives.........................................................................................................9The Organization or Structure of the Dissertation...........................................................................9Review of literature.......................................................................................................................10Methodology..................................................................................................................................23Research Philosophy..................................................................................................................23Research Approach....................................................................................................................24Research Design/Strategy..........................................................................................................24Data Collection Method.................................................................................................................25Sampling method...........................................................................................................................26Accessibility Issues....................................................................................................................27Data Analysis and Results.............................................................................................................28Questionnaire.............................................................................................................................28Discussion......................................................................................................................................46Conclusions....................................................................................................................................49Cost and Benefit Analysis of One Company.............................................................................50Objective Achievement..............................................................................................................53Recommendations..........................................................................................................................53Future Work...................................................................................................................................55References......................................................................................................................................57Appendix........................................................................................................................................62Appendix B................................................................................................................................72
5IT OUTSOURCINGIntroductionThe current paper is focused on investigating the impact of information technology outsourcing on the technology small medium enterprises. Outsourcing of IT projects are growing and enhancing since late nineties and thus it is relatively a new area of the academic research. After the reserve of big multinational companies, the latest entry into the IT outsourcing involves smalland medium enterprises. Chang and de Burca (2015) on the basis of revised model of Leavitt’s diamond by Davis and Olson’s developed a concept based framework and system which outlinesmain elements and components of small business who are undertaking IT outsourcing. In this research paper three firms were selected who outsourced their IT infrastructure their in-depth interview was conducted with their senior managers and employees. The current paper is concerned with investigating the IT outsourcing for small businesses (SMEs) in UK. The small to medium-sized enterprises are the integral part of the economy of a country (Aron, et al., 2005). These SMEs help the country in generating employment for most of the population and
6IT OUTSOURCINGalso contributes to the gross domestic product (Premkumar and Roberts, 1999). It has become important that the issues associated with the SMEs are handled effectively to ensure that they keep contributing to the growth of the economy (Scase, 1997). However, the latest drifts suggestthat the concept of outsourcing involves improving the usage of all internal service and resource satisfaction (Aubert, et al., 1999). The emergence of information technology can be considered as one of the enablers that has supported the SMEs to a greater extent. Technologies have helped these businesses in automating most of their operational activities and also look forward to upcoming opportunities in the market. A study conducted in 1997 led to the understanding that the 95 percent of the SMEs active in the OECD economies were generating around 60 percent ofthe employment (OECD, 1997). The SMEs are found to be more flexible and ready to adopt newchanges in the environment or the market. They have also countered global competition in many situations (Aubert, et al., 2008). The use of the information technology to outsource the monotonous activities is expected to bring more opportunities for the SMEs to grow further. Thisaspect will be investigated in the current paper. The emergence of the technologies has made it easier for the organization to outsource their activities (Quinn and Hilmer, 1994). The SMEs thatare working in the remote locations or the one functioning in the industrial areas, now both of them have access to similar market opportunities. A preliminary assessment of the literatures related to the small businesses has led to the understanding that they face challenges at multiple levels. The SMEs regularly face scarcity of resources at various levels such as expertise in information technology, availability of time, presence of adequate finance, and others (Blili and Raymond, 1993; Paraskevas and Buhalis, 2002). Now the technologies around the world have significantly developed and are also being adopted by the small businesses in handling various activities. However, despite the presence of the myriad technologies, it has become challenging
7IT OUTSOURCINGto select the right technology for them that can facilitate in their business improvement (Bahli and Rivard, 2005). Only the presence of the technologies in the market is not going to suffice in fulfilling the business needs, the small businesses are required to enough expertise to handle those technologies to facilitate in the business activities (Baxendale, 2004). It has been found thatdue to limited access to human resources, the small businesses cannot afford to divert its resources to the other functional or support activities other than their core activities that are bringing in direct revenue. This is the point where outsourcing of the technologies is witnessed among SMEs. The main thrust behind this paper involves to develop over the existing research through identification of the problems and issues that are specific to the UK outsourcer by givingan evaluation of present academic literature and review on outsourcing of Information technology relating to the major frameworks and also investigating the preset attitude in UK corporate culture for outsourcing which includes offshoring portion of the business of company (Bardhan et al., 2006). This thesis makes use of the exploratory research for determining the suitable design of research, methods of data collection and selecting the subjects for this researchpaper. In addition to the above, the small businesses find it challenging to identify and implement right technologies for them or the suppliers. Moreover, there are various environmental vulnerabilities that keep grappling these businesses (Quinn, 2000). The point where the small businesses find it challenging to come up with the right technologies that can assist them in handling their business effectively is where they look towards outsourcing. The current paper will look into the same considering the primary and secondary research methodology. A total of 100 candidates were selected as the respondents for this research paper. The system and framework of methods that are taken to test and examine the propositions are
End of preview
Want to access all the pages? Upload your documents or become a member.
Related Documents
Research Proposal Formlg...
|3
|749
|97
Brief Outline of and Rationale for the Chosen Thesis Topic | PPTlg...
|9
|680
|18
Report on Impact of Digital Technology - The Holiday Inn Expresslg...
|31
|4507
|48
Small Business Enterprise Assignment ( SBE )lg...
|17
|5250
|229
Small Business Enterprises Report - ANS grouplg...
|17
|5553
|31
Digital Technologies in Healthcare: A Reviewlg...
|21
|2796
|226