Modelling IT Outsourcing Process

Abstract

Slovenian government has adopted the utilization of outsourcing as one of the main instruments to tackle national/municipal budget deficit and stimulate cost effectiveness of the public sector. While lacking experience as well as formal regulations and expertise in the field of outsourcing, public sector started straying to the growing and increasingly less justified outsourcing of public services, leading to a completely opposite effect than expected and desired. Being aware of the complex and almost unparalleled role of information technology (IT) in the modern organization, IT sourcing issues could define the main trajectory of public sector action in the future as well as articulate its development strategy and long-term goals of e-government in general. This paper focuses on in-depth analysis of the critical success factors of public sector outsourcing, while employing the international studies and primarily the results of the research from 2010, concerning outsourcing of IT-projects in Slovenian municipalities. This paper provides additional analysis of the material, procedural and other relevant aspects within the process of IT outsourcing, an overview of its potential implications and eventually presents a contextual framework and a set of applicable guidelines for quality management of IT outsourcing process and effective implementation of e-government projects in the public sector.