The influence of IT outsourcing on organisational success and innovation
Authors
Murphy, LiamAffiliation
University of ChesterPublication Date
2024-07-22
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This study investigates the domain of IT outsourcing (ITO), focusing on its implications for organisational success or failure, and its impact on innovation. Through a comprehensive literature review, significant gaps were identified, including a lack of empirical studies assessing ITO outcomes for organisations, how ITO impacts innovation, and if an organisation’s industry impacts ITO success. In response, three research questions are formulated to address the identified gaps, leading to the creation of a novel conceptual model designed to evaluate the influence of ITO on organisations. Employing a deductive approach, the model informed a triangulation research approach, combining quantitative and qualitative data. A survey garnered responses from 112 senior IT professionals across three industries, complemented by eight interviews with senior and executive management. Findings indicate a concerning rate of perceived ITO failures and reveal that the specific industry of an organisation can affect ITO success. The study also concludes that ITO adversely impacts organisational innovation. Based on these insights, eight best practices are recommended to enhance ITO outcomes, including market research on vendor skillsets and experience, the establishment of well-structured contracts, adherence to SLAs without grace periods, shorter project durations, multi-sourcing strategies, bolstering internal IT capabilities, helping employees to understand ITO value, and rigorous governance. Acknowledging its limitations, this paper calls for future research involving broader industry representation and larger sample sizes to validate and expand upon these findings.Citation
Murphy, L. (2024). The influence of IT outsourcing on organisational success and innovation. Future Business Journal, 10(1), 1-17. https://doi.org/10.1186/s43093-024-00372-yPublisher
SpringerJournal
Future Business JournalAdditional Links
https://fbj.springeropen.com/articles/10.1186/s43093-024-00372-yType
ArticleEISSN
2314-7210Sponsors
N/Aae974a485f413a2113503eed53cd6c53
10.1186/s43093-024-00372-y
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Except where otherwise noted, this item's license is described as Licence for this article: http://creativecommons.org/licenses/by/4.0/