An investigation into the factors influencing the outsourcing decision of e-banking services

Abstract

Purpose This paper aims to provide an in-depth analysis toward understanding the critical factors in affecting information technology outsourcing (ITO) decision in the context of e-banking services in Iran. Within the recent decades, outsourcing IT processes and services as a strategic decision has been widely adopted throughout industries. In this regard, scholars have investigated a wide range of factors influencing ITO decision in various contexts. Design/methodology/approach This research examines a conceptual model that shows impacts of different attributes including technological, organizational and environmental on the Iranian banks’ ITO decision. To validate the research hypotheses, the partial least squares (PLS) technique for data analysis, is utilized. Findings The results of this study derived from the theoretical discussion of hypotheses illustrated that 9 of 11 assumed factors (i.e. perceived tangible benefits, perceived intangible benefits, perceived risks, perceived information security/privacy, complete contract establishment capability, making strong trustworthy relationship capability, uncertainty in business requirements, external pressure and market maturity) influence ITO decision in the target industry. The findings also confirmed that the size of the bank and competitors’ absorptive capacity did not exert any influence on their service outsourcing decision. Research limitations/implications The sampling was confined to experts in the banking industry. Also, the results of this study reflect Iranian perspective. Consequently, generalization based on this sample would be interpreted cautiously and a limitation of the context should be kept in mind. Originality/value Insights into policymaking for suitable drivers to outsource e-banking services in the context of a less developed country are the main outcomes of the current research.

Information security implications of using NLP in IT outsourcing: a Diffusion of Innovation theory perspective

“…As described in Sect. 2.3 , the DoI theory helps to understand the adoption of innovation in an organisation (Hanafizadeh and Ravasan 2017 ; Rogers 2003 ). The five attributes of this theory are applied to the adoption of NLP for the enhancement of ISRM in ITO client and service provider organisations as follows:…”

“…DoI theory (Rogers 2003 ) was used to understand the phenomena from a theoretical perspective. Since this theory explains the reasons for the adoption of innovation in organisations (Hanafizadeh and Ravasan 2017 ), its use was appropriate in this study because it helped to interpret the arguments provided by the participants in relation to adopting NLP in their ITO service delivery (RQ1). A thorough understanding of the adoption scenarios of NLP for ISRM in ITO helped to further discover the ISRs of NLP in ITO (RQ2) and the possible mitigation approaches for those ISRs (RQ3).…”

“…DoI theory (Rogers 2003) was used to understand the phenomena from a theoretical perspective. Since this theory explains the reasons for the adoption of innovation in organisations (Hanafizadeh and Ravasan 2017), its use was appropriate in this study because it helped to interpret the arguments provided by the participants in relation to adopting NLP in their ITO service delivery (RQ1).…”

“…This paper applies the DoI theory (Rogers 2003 ), and its brief description is provided here. According to DoI theory, five characteristics justify an innovation’s adoption in an organisation (Hanafizadeh and Ravasan 2017 ; Rogers 2003 ):…”

The impact of strategic human resources planning on the organizational performance of public shareholding companies in Jordan

“…HR staff performance significantly contributes to the overall measurements of HR effectiveness. Leaders are accountable for making outsourcing decisions and considering operating costs a primary reason for implementing outsourcing strategies (Hanafizadeh & Ravasan, 2017). An organization's mission, vision, and goals are foundational to its organizational performance, and when these guiding principles are shared at every level on the organizational ladder, they will be embraced by an engaged workforce.…”