Financial institution letter fil2014 april 7, 2014 technology outsourcing. Download pdf information technology outsourcing global outsourcing trends and digital ito. If you dont have an it helpdesk, we can provide the complete service. Outsourcing from the perspective of economic theories. One possibility by which an organization can improve performance is business process outsourcing bpo and information technology outsourcing. Global information technology outsourcing in search of business advantage mary c. Information technology it sourcing is defined as the entire set of processes ranging from initiating and preparing the decision to provide an organizations is functions in house or externally by a legally independent service provider or some combination of the two hirschheim et al. Outsourcing information technology, or it as it is more commonly known, has recently blossomed into one of the most distinct sectors of the outsourcing marketplace, one with its own nomenclature, business practices and emerging set of standards. As the pace of innovations in production technology increases, the firm has less time to amortize the sunk costs associated with purchasing the new technologies.
It outsourcing provides businesses with the ability to focus on core competencies, access stateoftheart technology and increase flexibility and cost savings. This paper employs four conceptual frameworks to assess it outsourcing arrangements, i. Many firms have adopted outsourcing in recent years as a means of governing their information technology it operations. To track the ongoing journey of global outsourcing, deloitte reached out to industry leaders from organizations of. We realised that many journals were not included on the database for all the years in which articles could be published and therefore decided to complete the. M aking it work value of outsourcing in allowing managers more time to focus on their.
Unless technology is your area of expertise, outsourcing providers are more quali. Outsourcing is most mature in the information technology sector information technology outsourcing ito although it is increasingly developing to include a wide range of business processes business process outsourcing bpo such as hr, finance, procurement, customer service, and the wider back office function. The outsourced tasks can be performed onsite or offsite. Zack northeastern university, college of business administration boston, massachusetts, usa submitted to olkc 2006 conference at the university of warwick, coventry on 20th 22nd march 2006. Pdf a framework for information technology outsourcing. Dykemas uptodate understanding of technology transactions and the technology marketplace leads us to creative, marketdriven solutions that meet individual client needs. Outsourcing is not unique to information systems services. Does information technology outsourcing reduce nonit operating costs. Today you can outsource anything from payroll to marketing to hr to legal. Outsourcing is currently relatively popular with both profitseeking and. The three attached fdic technology outsourcing documents are being reissued as an informational resource to community banks on how to select service providers, draft contract terms, and. Outsourcing is a more familiar term than insourcing, though the latter was practised before the former. Analysis of increased information technology outsourcing. Wns trac stands differentiated with its ability to understand and identify the right technology for your business, and therefore, drives larger organizational goals.
Read on to how your company can take advantage of technology outsourcing. In addition, outsourced it services offer 247 support and guaranteed service level agreements that go beyond what your internal operations team could provide, letting you get more work done with. An organization would use it outsourcing for functions ranging from infrastructure to software development, maintenance and support. A framework for information technology outsourcing risk management article pdf available in acm sigmis database 364.
For example, an enterprise might outsource its it management. The value in information technology outsourcing deloitte us. According to outsourcing and technological innovations. These days, it is rare for a business not to outsource some part of its information technology function. Companies could put their resources in other important areas, while leaving outsourced areas to specialize in the area that they. Outsourcing occurs when information systems activities are carried out by a provider outside the organization. In many situations, outsourcing offers the institution a cost effective alternative to inhouse capabilities.
Information technology outsourcing technology essay sample. Information technology outsourcing also provides competitive advantage to any company that takes advantage of it. As anyone who works with computers knows, having a good support person on hand is a valuable asset. A framework for negotiating information technology outsourcing agreements abstract research shows that poorly crafted it outsourcing agreements factor significantly in the eventual failure of such agreements. A framework for negotiating information technology. Outsourcing technology services ffiec it examination. One reason might be the speed of technological innovation during that period. An organization would use it outsourcing for functions ranging from infrastructure to software development. Our core areas of specialization include representing customers in technology acquisitions, negotiating technology licenses and representing technology based businesses in customer negotiations, industry transactions. The significance of this is great, marking the largest technology outsourcing pact among local governments to date. Neither the literature on outsourcing nor the literature on the impact of information technology it have previously quantified the effects of it outsourcing. Outsourced it providers have the infrastructure and service level agreements that allow smaller.
The impact of technological innovation on outsourcing decisions. It outsourcing is a phrase used to describe the practice of seeking resources or subcontracting outside of an organizational structure for all or part of an it information technology function. Examining the issues of outsourcing and insourcing. Information technology outsourcing denotes the process of transferring decisions rights or property rights in different degrees over it infrastructure development and use by the userorganization to an external organization. The it industry is rapidly expanding making this bsit program a crucial part in future technologists training. First, the evolution of technology is beneficial to humans for several reasons. Information technology outsourcing semantic scholar. It allows you to take advantage of qualified programmers, coders and designers etc. Access to skilled personnel, advanced technology infrastructures, flexibility, and. Technology outsourcing technology bpo wns technology. Outsourcing information technology to offshoring philippines has helped in enhancing companies capacity for innovation among several other benefits which include adequate redeployment of both human and material resources. Often it is considered that outsourcing requires a huge amount of investment in terms of human resources, infrastructure, and technology making it a feasible solution only for the larger companies. This bs in information technology program is transferfriendly and was. This will likely prove limiting as a firm grows or its needs change.
Because technology, in particular, it, is a complex and dynamic hypothesis 2. The three attached fdic technology outsourcing documents are being reissued as an informational resource to community banks on how to select service providers, draft contract terms, and oversee multiple service providers when outsourcing for technology products and services. Whats more, the growth of cloud computing may make it outsourcing even more common. This guide provides information on the types of it outsourcing ito the life cycle of it outsourcing, and how internal auditors. It outsourcing is not a very new feature in the business world and its onset can be traced back to the 70s and 60s when. Information technology it outsourcing has grown in popularity as an efficient, costeffective, and expert solution designed to meet the demands of systems implementation, maintenance, security, and operations. Some outsourcing providers may offer technology hosting only, while others may specialize in a particular aspect of operations. We searched the abi database for articles with the terms outsourcing and it or information technology or is or information system or ict or systems management, without limiting the search date in their abstracts or keywords or full text. Outsourcing, on the other hand, enables the firm to purchase inputs from supplying firms using the latest production technology while avoiding the sunk costs of the new technology. Outsourcing outsourcing is when any operation or process that could be or would usually be performed inhouse by an organisations employees is subcontracted to another organisation for a substantial period. Information technology outsourcing by large australian.
Information technology outsourcing ito zoom in on value outsourcing is a vital part of a companys evolving service delivery model and it is increasingly being used to capture market innovations, like robotics, and cognitive technologies, to enhance a companys capabilities. Pdf the paper aims to analyse how the management science literature explains sustainable coordination and management of information. Other industries such as manufacturing and services have outsourced their. Information technology outsourcing from a court perspective. While outsourcing is associated with significant benefits, it can also be. Information technology outsourcing this type of outsourcing deals with corporate it projects contracting to an outside contractor. Firms incur a sunk cost when adopting new technologies. The bachelor of science in information technology at grand canyon university prepares program graduates to find careers in the field of information technology. The information technology examination handbook infobase concept was developed by the task force on examiner education to provide field examiners in financial institution regulatory agencies with a quick source of introductory training and basic information. They are all topics repeatedly found in most articles but in some it forms an. In this white paper we discuss this new paradigm, highlighting how organizations across industry and functional silos can more effectively lash together the collective strengths of global talent, standardized processes and the latest technology to deliver continuous business impact. Companies also are turning to outsourcing for their information technology service needs. Outsourcing brings client firms advantages related to technology jurison, 1995, as these business organisations can have access to specialised, state. Pdf in this paper a basic model for integrating the success factors and synergies from the information technology it outsourcing and strategic.
At the medical level, technology can help treat more sick people and consequently save many lives and combat very harmful viruses and bacteria. Outsourcing, on the other hand, enables the firm to purchase inputs from supplying firms using the latest production technology while. The demand for outsourcing it services is growing worldwide. The impact of information technology outsourcing on. Outsourcing information technology research papers write about it and how it outsources easily. Technology outsourcing definition of technology outsourcing. Information technology outsourcing chapters site iia. Outsourcing and offshoring information system projects. Wns trac is a consolidated suite of comprehensive, nextgeneration technology solutions for managing complex business processes for our clients across industries. Outsourcing it functions lets your management focus on your core competencies and business development, rather than struggling with technology issues. Issues and future analyses vikas saini miami university department of decision sciences and mis.
Outsourcing of information technology it is a wellestablished part of australian business. With the use of outsourcing growing, outsourcing models and methods are reinventing themselves to adapt to market forces and disruption. Pdf a framework for information technology outsourcing risk. Technology outsourcing synonyms, technology outsourcing pronunciation, technology outsourcing translation, english dictionary definition of technology outsourcing. The longterm goal of the infobase is to provide justintime training for new regulations and for other topics of specific concern to. It risk and present recommendations for processes that have been outsourced. Asset transfer and the role of contract abstract information technology outsourcing ito has become the predominant mode of acquiring information systems services, providing clear evidence that the economics of service delivery favor external service providers over inhouse information systems departments. Offshore outsourcing of it support and development is a critical and widespread part of the globalised australian and other nations economies. Information technology outsourcing is when jobs that used to go to american workers are sent to it workers in other countries. Outsourcing can be beneficial to businesses that outsource software development.
This is a particularly important omission in india, which has an it outsourcing industry that is well placed to bring worldclass applications of the technology to domestic customers. The impact of technological innovation on outsourcing. Among the many articles dealing with the economics of outsourcing, they involve agency theory, transaction cost theory and others such as the game theory, resourcebased theory, and resourcedependence theory. Pdf a basic model for information technology outsourcing. Willcocks lacity, and willcocks have shown us again why they are the worlds leading it outsourcing gurus. An empirical study of information technology outsourcing. There is a positive relationship between it knowledge resource, firms are often limited in their abilities to outsourcing and business benefit. Outsourcing of it benefits of information technology. Outsourcing global technology audit guide is to help chief audit executives caes and their audit teams determine the extent of internal auditor involvement when it is partly or fully outsourced in their entities. Critics of outsourcing it argue that it creates too much loss of control, less flexibility, questionable savings and the risk of being held hostage to one vendor or subcontractor. This is a myth that probably emanated from the fact that outsourcing experiences of only large companies are covered in popular media. The invention of the computer was a very important point. However, there is currently no structured methodology for negotiating information technology outsourcing agreements.
413 747 263 1446 1034 850 650 82 1426 1241 641 302 1255 1040 1384 226 314 513 940 1033 328 892 311 1461 1351 293 1112 1307 1229 1286 802 8