Deakin University

File(s) under permanent embargo

Testing some myths about I.T. outsourcing : a survey of Australia's top 1000 firms

conference contribution
posted on 2008-01-01, 00:00 authored by Anne Rouse
This study examines the extent to which surveyed outcomes of IT outsourcing supported several commonly-argued propositions. Following confirmatOl), factor analysis, eight measures of success were used: access to skilled staff, technology benefits, economies of scale, cost reductions, strategic benefits, technical service quality, capacity to concentrate on core business, and overall satisfaction/value. The analysis produced some surprising findings. Some widely-promoted benefits of outsourcing were reported by most respondents, but other benefits that have been similarly promoted (such as cost savings) were reported by only a minority of respondents. There were no differences in success outcomes between medium-sized «500 employees), large (500 to 1000 employees), and very large (1000+ employees) organizations. There were some minor differences between government agencies and finns from the private sector, but no differences for key outcomes. Contrary to findings from case study research, "selective" outsourcing was no more successful than "total" outsourcing, although "total" outsourcing was uncommon. On the basis of these results, decision makers are urged to be cautious when planning to outsource IT services, and to be critical of claims that they will make substantial savings from outsourcing, or that outsourcing will automatically allow them to refocus more on their core business.



European Conference on Information Systems (16th : 2008 : Galway, Ireland)


1 - 13


National University of Ireland


Galway, Ireland

Place of publication

Galway, Ireland

Start date


End date




Publication classification

E1 Full written paper - refereed

Copyright notice

2008, ECIS


W Golden

Title of proceedings

ECIS 2008 : Proceedings of the 16th European Conference on Information Systems Conference proceedings

Usage metrics

    Research Publications


    No categories selected