Information Technology Outsourcing: A Comprehensive Analysis

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MITS4001 BUSINESS INFORMATION
SYSTEMS - RESEARCH STUDY

Abstract
IT outsourcing is the phase that can be used
for describing the activities to seek out the
resources. Outsourcing is considered as the
strategy that can be adopted by the managers
of the business for controlling and managing
all the activities of information technology.
The information system outsourcing is the
term that is not used earlier in the time of the
1980s. this term can be used from the last
two decades for managing all the activities
related to the information systems. Various
companies decide to transfer their
information system assets into information
system outsourcing. There are two
situations for explaining the term
outsourcing of information technology that
can be described as that the outsourcing of
information technology is the multifaceted
phenomenon which can be easily viewed
from the various perspectives at theoretical
level like theory based on transaction cost,
agencies, resources, etc. the second situation
is the phenomenon that can advance the
level of questions. This technology also
raises some new issues with many benefits
in the organization.
Information technology outsourcing is
important for managing all the tasks based
on information security. The study based on
outsourcing has found out with three major
concerns that are for ensuring the
information security, the vendor competence
is necessary, the second one is vendor
compliance for outsiders’ regulations with
requirements of the clients and the last one
is to believe that information based on
proprietary is not get abused and can easily
be controlled according to the requirements
at set of locations. This concept can easily
be evaluated by doing the qualitative
research which helps in understanding the
behavior of clients and vendors which is
commo0nlyt related to the concerns of
security of information.
The outsourcing of information technology
can be increased in last some years which
can be resulted in increment of the literature
that has a common aim of evaluating the
significant topics and used methodologies
which can help in controlling the activities
in IT areas. Outsourcing is considered as the
measure at a temporary level along with
anticipation for which many activities can be
reintegrated. It means that the managers of
the companies have taken into account that
the horizon or level of time can be decided
at the time of deciding the level for contract
completeness. This will have resulted in that
outsourcing becomes a temporary approach.
In this, the theory of cost transaction also

plays a key role through which the
uncertainties in a budget can be determined.
Completeness level of the project can be
reduced down due to the uncertainties while
the idiosyncrasy reduces the use of
outsourcing at a permanent level. The
demand of predictability which can be used
for evaluating the frequency of the system
can play the double role which can be used
to increase the level of completeness along
with reducing the concept that outsourcing is
a permanent solution, it can be considered as
the permanent solution.
Outsourcing can turn over the few junctions
based on information technology or
processing of services which can be easily
captured according to assumptions for
corporate executives. As the pressure of cost
reduction is increased, it allows the best
form of leverages resources which includes
the costs and strategies along with the
specific activities for adding values to the
business. The outsourcing is smaller down at
global level but it increases the overall
sector of the market-based on outsourcing if
the information. However, outsourcing
added the managerial guidelines that can be
used for managing all the activities and
policies of the organization. The outsourcing
can easily focus on functions of information
technology which can be focused on
business strategies along with increasing the
efficiency of the business as well as the
organization. This will help in turn over the
entire part of the functions of the
organization to the providers at the external
service level.
The ventures based on outsourcing of the
information technology can help in
achieving the objectives of outsourcing
which is based on the approach of the
effectiveness of operational level which
ensures the relationship of client and
suppliers. The management relationship can
be improved by identifying all the members
and management issues. At this time,
researchers can use the interaction
approaches can be used to identifying all the
relationships based on the outsourcing of the
information technology.
Outsourcing of IT can be used to represents
the structures of cost and performance based
on the economic level. Outsourcing is
commonly related to the leverages at a
financial level. It is commonly related to the
governance of the business and the structure
of cost. It can be observed that this
technology is effectively used with IT
performance and supports a high level of the
activities of the business with information
technology.

References
[1]
Rivard, S. and Aubert, B.A., Information
technology outsourcing: An introduction.
In Information Technology Outsourcing, pp.
15-34, 2015.
[2]
Dhillon, G., Syed, R., and de Sá-Soares, F.,
Information security concerns in IT
outsourcing: Identifying (in) congruence
between clients and vendors. Information &
Management, vol. 54, no. 4, pp.452-464,
2017.
[3]
Aubert, B.A., Houde, J.F., Rivard, S. and
Patry, M., Determinants of contract
completeness for information technology
outsourcing. Information Technology and
Management, vol. 18 no. 4, pp.277-292,
2017.
[4]
L. Loh and N. Venkatraman, “Determinants
of Information Technology Outsourcing: A
Cross-Sectional Analysis,” Journal of
Management Information Systems, 2015.
[5]
Kern, T. and Willcocks, L. Exploring
relationships in information technology
outsourcing: the interaction approach.
European Journal of Information Systems,
2017.