Determinants of IT Outsourcing Services in IT Company of Australia

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Determinants of IT Outsourcing Services in IT Company of Australia
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28th September 2017

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Table of Contents
1. INTRODUCTION..................................................................................................................3
2. PROJECT OBJECTIVE.........................................................................................................3
3. PROJECT SCOPE.................................................................................................................4
4. LITERATURE REVIEW.......................................................................................................5
5. RESEARCH HYPOTHESIS.................................................................................................8
5.1 Primary Hypothesis..........................................................................................................8
5.2 Secondary Hypotheses......................................................................................................8
6. RESEARCH METHODOLOGY...........................................................................................9
6.1 Qualitative research..........................................................................................................9
6.2 Quantitative research........................................................................................................9
6.3 Validity and Reliability....................................................................................................9
6.4 Data Analysis Method....................................................................................................10
6.5 Research Limitations......................................................................................................10
6.6 Research plan..................................................................................................................10
6.7 CONCLUSION..................................................................................................................11
APPENDICES..........................................................................................................................12
Appendix 1...........................................................................................................................12
Appendix 2...........................................................................................................................13
References................................................................................................................................16

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Determinants of IT Outsourcing Services in IT Company of Australia
1. INTRODUCTION
As stated by Mattheakis (2013), outsourcing is a process of transferring the works
traditionally performed in a company to a third party off-shore or within the nation.
Offshoring process is adopted by multinational businesses to reduce the operational costs.
The services offered by the third party vendor are used by the organization for carrying out
the operations. The objective of outsourcing is to increase flexibility and adaptability of the
company to the new market situations by focusing on the goal of the firm, delegating some
functions, transactions to other businesses. Outsourcing has become a significant business
function both in the private and public sector and is a major component in business strategy
(Gunasekaran et al., 2015).
IT sourcing can be carried out in offshore places and submitted through the internet just like
other products that are manufactured in other countries and physically shipped to Australia.
The globalized Australian economy has offshore, and onshore outsourcing of IT function at
its core. According to the Australian Bureau of Statistics (ABS), the total costs spent by the
government on information technology (IT) in the period of 1999-2000 was 5% of the overall
government budget (Luu and Freeman, 2011). The worldwide IT service industry is estimated
to be worth approximately USD$748 billion (Luftman, and Ben-Zvi, 2011).
2. PROJECT OBJECTIVE
The aim of this paper is to find out the determinants of IT outsourcing services in IT
Company of Australia. Furthermore, this study examines the reasons for the decision of
outsourcing with the aim of developing an in-depth understanding of the objective.

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3. PROJECT SCOPE
To research outsourcing of IT function from the perspective of IT Company of Australia, a
comprehensive literature review was carried out. The report considered systematically
discussed and read research papers and relevant journals to provide the background
knowledge and information on the topic.