OUTSOURCING OF INFORMATION SYSTEM AS A COMPETITIVE ADVANTAGE

Outsourcing of Information System as a Competitive Advantage

[Muhammad Zareef]

[UWE]

Abstract

Aim - To investigate the contribution of outsourcing of information system towards gaining competitive advantage.

Purpose - This paper seeks to provide competitive advantage and assessment processologies for executives of global conglomerates with a selection of variables which can help them evaluate outsourcing decisions.Design/processology/approach - A range of established theories, which addressed outsourcing decisions, are identified. The major determinants of global outsourcing are then formulated into an integrated model. Each of the variables identified is validated using multiple theories. Finally, a weighted score index is used to demonstrate how the variables can be used to evaluate outsourcing decisions.Findings - These provide an overview of outsourcing theories and their associated determinants as well as attributes that are relevant to decision-makers. These findings show that the individual theories can be integrated into a global competitive advantage. This competitive advantage can be assessed using a weighted-index because the inputs and computation processes contain realistic qualitative and quantitative information.Research limitations/implications - It is an assessment processology that requires input and judgment from a variety of experts. Persons having such expertise may be fairly costly and difficult to find.Practical implications - A very simple, yet comprehensive, and useful competitive advantage for executives making outsourcing decisions. The assessment index is a proven processology that is used by business consultants for a variety of related applications involving decision choices.Originality/value - This paper fulfills the need for a more comprehensive view and a systematic approach to the assessment of outsourcing decisions. The index of attributes identified and the evaluation technique proposed are a practical approach.

Outsourcing of Information System as a Competitive Advantage

Aim of the Research

The aim of this research is to investigate the contribution of outsourcing of information system, towards gaining competitive advantage.

In order to achieve this aim, the core object has been broken down into a series of following objectives:

To Investigate outsourcing of information system into the concepts of competitive advantage.

To establish whether there's a direct relationship between client and vendor for successful information system outsourcing?

To establish whether outsourcing of information system reduces costs?

To investigate other driving factors behind outsourcing of information system?

To determine whether functioning increases staff expertise?

Case Study

The term "case study" has multiple meanings. It can be utilised to recount a unit of investigation (e.g. a case study of a specific organisation) or to recount a study process. In this research the term is used to describe a study process.

Case study is the most widespread qualitative procedure utilised in information systems (Orlikowski and Baroudi, 1991; Alavi and Carlson, 1992). Although there are many delineations, Yin (2002) characterises the scope of a case study as follows:

A case study is an empirical study that investigates a designated day occurrence inside its real-life context, particularly when the boundaries between occurrence and context are not apparently apparent (Yin 2002).

Clearly, the case study procedure is especially well-suited to IS study, since the object of this research is to study information systems ...