Information System Outsourcing: A Research Study (MITS4001)

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MITS4001
Business Information
System
Research Study
Student Name:-
Student Id: -

Information System Outsourcing
• Information System Outsourcing is
hiring third party external vendor to
perform the Information system and
technology functionalities focusing on
core activities [1].

Need for Outsourcing
 Reduction in the cost
 Optimisation and [2] utilisation of
internal resources
 For growth and expansion in business
 Advantage of skilled expertise.

Types of Outsourcing
 Offshoring
 Onshoring (homeshoring)
 Nearshoring
 Multisourcing

Model for outsourcing
 Internal delivery
 Shared Services
 Independent Company
 Total Outsourcing
 Prime Contractor
 Best-of-breed consortium
 Selective Outsourcing

Impact of
Outsourcing
 Short term impact
 Medium term impact
 Long term impact

Benefits of Outsourcing
 Growth in business
 Provide competitive horizon to
business
 Reduce the operational and labour
cost.
 Flexibility to staff
 Provide high quality services.
 Expand and accelerate business
 Increase efficiency of work
 Focus on core activities.
 Give better risk [2] management plan
by reducing risk
 Give access to experts.

Challenges and Risk in Outsourcing
 Loss of control and autonomy
 Confidentiality
 Contractual formality risk
 Language
 Time zone difference
 Different work [4] culture
 Compromise of quality and standards.

References
• [1] Wei, C.C., Cheng, Y.L. and Lee, K.L., How to select suitable manufacturing information system
outsourcing projects by using TOPSIS method. International Journal of Production Research,
(2019),pp.1-18.
• [2] Aaron Bryant IGP, P.M.P.,A Case for Outsourcing IG Program Design and
Implementation. Information Management, 52(3), 2018, pp.36-39. [
• 3] Plugge, A., Borman, M. and Janssen, M., Strategic manoeuvers in outsourcing arrangements: The
need for adapting capability in delivering long-term results. Strategic Outsourcing: An International
Journal, 9(2), 2016, pp.139-158.
• [4] Schermann, M., Dongus, K., Yetton, P. and Krcmar, H., The role of transaction cost economics in
information technology outsourcing research: a meta-analysis of the choice of contract type. The
Journal of Strategic Information Systems, 25(1), (2016), pp.32-48.

Thank you