Does off-shoring IT make good business sense? Proceed with caution!

Paper

Lane, Michael and Van Der Vyver, Glen. 2006. "Does off-shoring IT make good business sense? Proceed with caution!" Tan, Bernard (ed.) 10th Pacific Asia Conference on Information Systems (PACIS 2006). Kuala Lumpur, Malaysia 06 - 09 Jul 2006 Phoenix, AZ, USA.
Paper/Presentation Title

Does off-shoring IT make good business sense? Proceed with caution!

Presentation TypePaper
AuthorsLane, Michael (Author) and Van Der Vyver, Glen (Author)
EditorsTan, Bernard
Journal or Proceedings TitleProceedings of the 10th Pacific Asia Conference on Information Systems (PACIS 2006)
Number of Pages8
Year2006
Place of PublicationPhoenix, AZ, USA
Web Address (URL) of Paperhttp://aisel.aisnet.org/pacis2006/95
Conference/Event10th Pacific Asia Conference on Information Systems (PACIS 2006)
Event Details
10th Pacific Asia Conference on Information Systems (PACIS 2006)
Event Date
06 to end of 09 Jul 2006
Event Location
Kuala Lumpur, Malaysia
Abstract

IT off-shoring has received much attention in the media for both positive and negative reasons. However, there has been a lack of empirical studies that have critically evaluated the practice of IT off-shoring. This paper reports on a qualitative study of the key factors facilitating and inhibiting the adoption of IT off-shoring by Australian industry. Empirical data was collected in a series of in-depth interviews drawing on the first hand experience of a number of senior business managers and senior IT executives. The findings indicate that organisations are generally positively disposed towards the practice of IT off-shoring but are quite selective in what IT they are offshoring. The findings also revealed that the perceived cost advantages may actually be much lower than expected due to the considerable establishment and management costs associated with IT off-shoring. Furthermore organisations need to also consider the negative consequences such as the potential loss of IP and loss of valuable internal ICT knowledge and capability.

KeywordsIT off-shoring; IT outsourcing
ANZSRC Field of Research 2020460911. Inter-organisational, extra-organisational and global information systems
359999. Other commerce, management, tourism and services not elsewhere classified
350503. Human resources management
Public Notes

Paper no.95

Byline AffiliationsSchool of Information Systems
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https://research.usq.edu.au/item/9y737/does-off-shoring-it-make-good-business-sense-proceed-with-caution

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