IT and ecommerce outsourcing in small to medium-size enterprises in New Zealand : an exploratory research

In New Zealand, small to medium-sized enterprises (SMEs) play a very important role in the economy by their contribution to both employment and also to gross domestic product. Addressing issues pertinent to SMEs is of paramount importance in driving this sector forward. Information Technology (IT) emerges as one main enabler for SMEs in automating their operations, seeking new opportunities and enhancing their strategic business positioning in local and international markets. However, the dynamic nature of IT and inability of SMEs, due to problems inherent in their size and structure, makes it difficult for them to take appropriate decisions to benefit from the IT technologies. The advent of eCommerce (EC) has only compounded this problem. One way out of this complex situation is to outsource the IT and EC technology requirements by the SMEs. This study endeavours to identify the pattern of IT and EC outsourcing issues of SMEs within New Zealand. It reveals that the main driver for IT outsourcing is access to expertise and used mainly for maintenance purposes only. The study also identifies the problems in IT outsourcing and makes suggestions for further research in this crucial sector.