Analysis of the Risk in Information Technology (IT) outsourcing In Public Organisations (original) (raw)

ICT outsourcing: Inherent risks, issues and challenges

growth, 2008

The Malaysian government has worked together with non-governmental entities to develop and operate internal management systems as well as deliver public services to citizens. Much attention has been given to the computerization of government ministries and agencies to improve the government's capacity to carry out its tasks and cope with the future challenges in order to achieve performance goals. The aims of this research are to determine the ICT services that are currently being outsourced and to describe the inherent risks, issues and challenges in ICT outsourcing in the Malaysian public sector. The findings from this research showed that network services is the most common ICT services activity that is being outsourced and that outsourcers who do not comply with contract has the most influence on ICT outsourcing inherent risks. The main issue raised in ICT outsourcing is the inappropriateness of ICT projects being outsourced. Through the findings, public sector organizations would be able to identify the most common ICT services outsourced, analyse the inherent risks, and address the issues that are being raised. In so doing, the potential impact of failure can be anticipated and dealt with accordingly.

Managing the Risk of Outsourcing the It Function at Companies

Risk Governance and Control: Financial Markets & Institutions, 2016

The main objective for this secondary research is to determine whether the risk of outsourcing the IT function can be managed. Driven by political and economic dynamic changes, facilities management was borne to enable reacting to change. Doing business in today’s global economy requires exceptional skills from management in order to be competitive and to have a specific competitive advantage over competitors are getting even more demanding. One of the widest used methods of facilities management deployed by organisations is that of outsourcing in various forms (i.e. I.T., H.R., Distribution, Warehousing, etc.) for various different reasons (i.e. reduce costs, improve quality, focus on core business, etc.). In order for outsourcing to be successful, it needs to add benefits to profits, efficiency or effectiveness ethic. Outsourcing assists management to gain a competitive advantage over competitors within their specific industries as part of their organizational strategies and devel...

Information Technology Outsourcing Risks

Journal of Applied Information Technology Management, 2011

An increasing number of companies are outsourcing their information technology (IT) operations to offshore suppliers. While certain benefits result from outsourcing, there are a variety of potential risks. The purpose of this study is to analyze these risks and to summarize a number of strategies proposed to mitigate them. In this study, the benefits of IT outsourcing (ITO) analyzed, followed by the different categories of ITO risks. Further, a number of basic strategies to address the ITO risks are addressed, such as ensuring proper clarification of the key components of outsourcing consisting of service levels, vendor personnel, and data protection. Other strategies include the use of a conceptual framework as well as IT audit. More sophisticated strategies also exist such as relying on more than one supplier and open source system outsourcing. Ideas for future research include extensions to the use of IT Audit and alternatives to traditional onesupplier outsourcing.

A Proposal Framework for Evaluating Risks of Information Technology Outsourcing

Information Technology Outsourcing (ITO) operations have important potential benefits including cost reduction, improved quality of service, and access to technological expertise. ITO has been recognized to have important potential benefit but ITO has some risks that it sometimes leads to undesirable consequence. This paper reviews research studies of ITO risks and proposes a framework for evaluating and prioritizing of them. Risk factors are studied domestically from the perspective of client.

Managing It Outsourcing Relationship in the Public Administration

2010

The outsourcing business in the public administration is increasing mostly in Europe through different contracting models and governance structures, where public entities and providers set up a market relationships regulated within public administration regulation frameworks. This paper presents a qualitative study based on a Italian Region that has outsourced its Information Systems. This study, at a very early stage, tries to contribute to the debate on Outsourcing in the Public Administration in Italy underling the characteristics of outsourcing models and how outsourcing processes are governed. KEY WORDS Outsourcing in Public Administration | outsourcing governance | IT outsourcing

A catalog of information systems outsourcing risks

International Journal of Information Systems and Project Management, 2022

Information systems outsourcing risks are a vital component in the decision and management process associated to the provision of information systems and technology services by a provider to a customer. Although there is a rich literature on information systems outsourcing risks, the accumulated knowledge on this area is fragmented. In view of this situation, an argument is put forward on the usefulness of having a theory that integrates the various constructs related to information systems outsourcing risks. This study aims to contribute towards the synthesis of that theory, by proposing a conceptual framework for interpreting the literature and presenting a catalog of information systems outsourcing risks. The conceptual framework articulates together six key risk elements, namely dangers, negative outcomes, undesirable consequences, factors and mitigation actions. The catalog condenses and categorizes the information systems outsourcing risk elements found on the literature revie...

Information systems outsourcing risks: a study of large firms

Industrial Management and Data Systems, 2005

Purpose -Despite the considerable growth of information systems (IS) outsourcing in recent years, this trend is still the object of strong criticism. This study has as its aim to show the main risks computer outsourcing entails in the case of the largest Spanish firms. Design/methodology/approach -In order to achieve that aim, reviews the previous literature on this topic and later analyses the results of a survey carried out using a questionnaire that was answered by 357 firms. Findings -According to the firms under analysis, the main concern in relation to IS outsourcing is the excessive dependence on the provider this type of contract can generate. Nevertheless, some characteristics of firms (mainly their size) determine to some extent what risks are seen as the most relevant.

Government IT and T Insourcing/Outsourcing: A Model and Guidelines

This paper describes collaborative research commenced early in 1998 and being pursued in cooperation with the Queensland Government. It extends prior work by Hirschheim, R. and Lacity, M. (Beyond the information systems outsourcing bandwagon: the insourcing response, 1995; Information systems outsourcing: myths, metaphors and realities, J. Wiley, Chichester 1993) in the private sector, identifying government specific contingencies, with emphasis on the outsourcing relationship and related contract structures. Comparison will be possible between the prior study and findings in the public sector. Preliminary findings will be available for presentation at ACIS'98.

Information Systems Outsourcing Reasons and Risks: An Empirical Study

2008

Outsourcing, a management practice strongly consolidated within the area of Information Systems, is currently going through a stage of unstoppable growth. This paper makes a proposal about the main reasons which may lead firms to adopt Information Systems Outsourcing. It will equally analyse the potential risks that IS clients are likely to face. An additional objective is to assess these reasons and risks in the case of large Spanish firms, while simultaneously examining their evolution over time.

Outsourcing a Company's It Department, is It Too Risky?

This paper discusses the importance of analyzing the benefits and risks associated with outsourcing a company's Information Technology (IT) department. Each of the risks are described and discussed in detail bringing to the forefront some of the problems that a company can run into if it does decide to outsource. If a company wants to outsource the IT department, it is important that they devise a plan of approach when deciding whether or not it is in their best interest to do so. This paper outlines one of these possible outsourcing plans that would help a company weigh the benefits and risks associated with outsourcing, as well as how to decide which supplier is their best possible choice for outsourcing. Additionally a plan to evaluate the performance of the program is outlined.