Theoretical and Pragmatic Framework For Outsourcing Of IT Services

Abstract

Since previous research in the information technology (IT) field focused on successes and failures of IT outsourcing (ITO) by organizations, this paper investigates the critical success factors (CSF) for IT outsourcing in the existing global environment. It is intended to provide assistance for the consideration of business professionals and IT managers when they make, examine or evaluate ITO decisions. Fifty four IT outsourcing CSFs were identified through an extensive literature review research. Some of the factors were utilized more frequently than others, while some CSFs have been given more importance than other by IT researchers. A 2-part theoretical framework (conceptual and pragmatic) was developed to aid the process of ITO decision making by IT managers in the global environment. The theoretical framework was developed based on existing research focusing on information technology, information systems, ERP, and IT outsourcing research. The conceptual CSF theoretical framework developed was based on six broad factors of concern, namely: strategic, the organisational situation, information quality, work quality, IT management scope and user requirements & satisfaction factors. A general decision making cycle consists of seven stages has been proposed. The pragmatic CSF model (framework) developed in this paper consists of critical management factors important to manage the ITO relationship effectively and attributes that affects the ITO relationships of client and vendor. At the end of the paper, measures and metrics of IT outsourcing performance were discussed with some proposed examples and tools.