The impact of outsourcing information technology services on business operations

Abstract

Background: Organisations outsource Information Technology (IT) services in order to keep up with the IT evolution and to remain competitive. Although the IT operations department is responsible to manage service provider service quality, they are not in a position to evaluate IT services performance because of the loss of control and capability in the IT environment.Objectives: This article investigated the impact of outsourcing in-house IT services on the performance of IT operations and how it affects the performance of the organisation.Methods: The qualitative approach was used in this research. Data was collected using structured interviews and were analysed using thematic analysis.Results: Outsourcing of IT services was found to have negative and positive impact on the organisation. Knowledge of the operating environment proved to be significant in the provision of relevant services that add value to the organisation. The results of the analysis revealed that in-house IT and the quality of IT services provided have a direct impact on the performance of the organisation.Conclusion: The study demonstrated that outsourcing IT services impacts the quality and the performance of the organisation positively and negatively. The study recommended that in-house IT and outsource service providers need to collaborate to ensure smooth service delivery, process alignment and also to equip in-house IT with skills to handle first-line support.

أثر تفعيل الدورين التوكيدى والاستشارى للمراجع الداخلى فى مجال الرقابة الداخلية ذات الصلة بتقنية سلسة الكتل على إدراك المستخدمين لجودة المعلومات- دراسة على مصلحة الجمارك المصرية(باللغة الانجليزية)

“…Concerning outsourcing information technology, prior research (Pankowska, 2019;Mtsweni, et al, 2021) discussed the advantages and disadvantages of outsourcing information technology. The advantages of information technology outsourcing involve easier access to technical experts and programmers and no need for recruiting highly technical human resources.…”

“…The advantages of information technology outsourcing involve easier access to technical experts and programmers and no need for recruiting highly technical human resources. On the other hand, outsourcing information technology means losing control of the IT process (Mtsweni, et al, 2021). In addition, outsourcing might result in the loss of organizations' valuable and confidential information, as a result of equipment theft or information security breaches, or lack of commitment from the service provider's side Mtsweni, et al, 2021) that might put the company at risk and might expose the company to the risk of service provider failure (Pankowska, 2019).…”

“…On the other hand, outsourcing information technology means losing control of the IT process (Mtsweni, et al, 2021). In addition, outsourcing might result in the loss of organizations' valuable and confidential information, as a result of equipment theft or information security breaches, or lack of commitment from the service provider's side Mtsweni, et al, 2021) that might put the company at risk and might expose the company to the risk of service provider failure (Pankowska, 2019). Also, the reliability of outsourced service is not guaranteed as it depends on the service provider (Mtsweni, et al, 2021).…”

“…In addition, outsourcing might result in the loss of organizations' valuable and confidential information, as a result of equipment theft or information security breaches, or lack of commitment from the service provider's side Mtsweni, et al, 2021) that might put the company at risk and might expose the company to the risk of service provider failure (Pankowska, 2019). Also, the reliability of outsourced service is not guaranteed as it depends on the service provider (Mtsweni, et al, 2021). There are several barriers that may prevent the company from adopting blockchain technology, such as a lack of blockchain-skilled specialists or experts in the labor market or firm internal technical expertise (Kurpjuweit, et al, 2021) As for insourcing information technology, prior research concluded that the advantages of having information technology processes in-house involve more control of the processes' application and management and more technological independence.…”

Managing Outsourcing in IT Software Services: A study of 3 Perspectives and 3 Industries in UAE

“…All that based on the results of interviewing three organizations in the UAE (Hani Al-Kassem, 2021;Straub et al, 2008). According to (Muhammad Turki Alshurideh et al, 2023c;Mtsweni et al, 2021), few papers looked at outsourcing relationships from both clients and vendors viewpoints. (Al-Kassem, 2017;Kalbasi et al, 2021;) also suggested that using the viewpoint of some other stakeholders as well like IT and business managers or staff would provide some new ideas (Rimba et al, 2020).…”