IT Outsourcing

Paper Summary:

The paper explores the factors which influence the success of IT outsourcing and looks at what can be done to ensure that these factors are taken into account during and after outsourcing. The paper provides a literature review and shows how the IT company providing outsourcing and the company hiring the services should fully communicate on all matters. The paper explains that performance management can be measured from the financial perspective, the customer perspective, the internal business process and the innovation and learning perspective.

Outline:
Introduction
Background
Research Aims and Objectives
Literature Review
Methodology
Data Collection/Analysis
Summary and Conclusion

From the Paper:

"The work of Poyhonen entitled: "Factors that Influence the Success of IT Outsourcing" states that: "With the ever-increasing pressure for cost reductions, outsourcing is a very tempting option for a company who wants to concentrate on it score competencies and let others take care of those functions which it has no competence or resources to focus on." The expected savings for a company for having outsourced is generally a savings of approximately 20% to 30%. Poyhonen states that: "The difference between companies that perform well with their outsourcing activities are those that are average is not in knowing 'what' to do. It is knowing that 'how' to do it well inside ones' own organization which makes the difference." (Poyhonen, nd) Factors that are stated to be those that can damage the outsourcing initiative are: "Wrong measurement, ambiguous contracts and unclear goals." (Ibid)"

Sample of Sources Used:

• Koh, C., Ang. S. and Straub, D.W. (2004) IT Outsourcing Success: A Psychological Contract Perspective, Information Systems Research 15(4): 356-373.
• Poyhonen, Seppo (nd ) Factors that Influence the Success of IT Outsourcing - TU 91.167 Seminbar in Business Strategy and International Business
• Schaffhauser, Dian (2006) Outsourcing Survey 2006, Part 3: Success Factors in Selecting a Provider. Enterprise Systems. Online available at: http://eesj.com/enterprise/article.aspx?EditorialsID=1767.
• State of IT Outsourcing (2006) CRMindindustry 2006 October. Knowledge Storm Online available at: http://products.esj.com/esj/search/index/sol_summary/85427?pos=2&trkpg=PARTNER_SEARCH_RESULTS_ESJ&stype=Outsourcing%20Survey%202006,%20Part%203:%20Success%20Factors%20in%20Selecting%20a%20Provider&n=85427&c=ESJ

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