Information Technology Outsourcing in Australia

Information Technology Outsourcing in Australia

Nicholas Beaumont (Monash University, Australia) and Christina Costa (Monash University, Australia)
Copyright: © 2003 |Pages: 28
DOI: 10.4018/978-1-59140-062-2.ch010
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Abstract

In Australia, popular discussion of the growing market in outsourcing information technology (IT) has been spurred by decisions of several large companies and the Australian government to outsource IT operations, but there has been little academic research into outsourcing in Australia. This chapter reports research into Australian IT outsourcing based on data collected in 1999. The research objectives were to measure the incidence of outsourcing among Australian firms, identify the functions outsourced, the reasons why managers considered outsourcing, the costs and benefits of outsourcing, possible changes in modes of and motivations for outsourcing and factors that are associated with successful outsourcing arrangements. The nature of and motivations for outsourcing have evolved; for example, cost saving is not (if it ever was) the prime motivator. The three most important factors driving outsourcing in Australia are access to skills, improved service quality and increasing managers’ ability to focus on core business activities. Decisions to outsource are weakly correlated with company size, but are not related to industry sectors. The factors most associated with successful IT outsourcing were the cultural match between the vendor and client, and the nature of the contractual arrangements—partnerships are more fruitful than rigidly interpreted black letter contracts. Outsourcing (not just of IT) is becoming increasingly popular; we suggest reasons for this and propose further research. The research used quantitative and qualitative data. A survey was used to collect data from 277 informants, and six interviews were used to explore managers’ reasons for outsourcing and relate these to the success of outsourcing arrangements. Outsourcing of many business processes (not just IT) is becoming increasingly frequent in Australia. Where appropriate, themes are illustrated by outsourcing activities other than IT.

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Table of Contents
Preface
Mehdi Khosrow-Pour
Chapter 1
France Belanger, Mary Beth Watson-Manheim, Dianne H. Jordan
Recent advances in information technologies have led organizations to diversify their organizational structures. One of the most prominent trends in... Sample PDF
Aligning IS Research and Practice: A Research Agenda for Virtual Work
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Chapter 2
Janice M. Burn, Karen D. Loch
This paper addresses the impact of information technology (IT) and the World Wide Web (WWW) on the 21st century and the challenges which we will... Sample PDF
The Societal Impact of the World Wide Web-Key Challenges for the 21st Century
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Chapter 3
Gurpreet S. Dhillon, Trevor T. Moores
The phenomenal growth in Internet commerce in recent years has brought privacy concerns to the fore. Although privacy as a concept has been well... Sample PDF
Internet Privacy: Interpreting Key Issues
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Chapter 4
Hope Koch, David Paradice, Yi Guo, Bongsug Chae
In today’s competitive global economy, characterized by shorter product lifecycles, increased employee turnover and ubiquitous information... Sample PDF
Knowledge Management Enablers within an IT Department
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Chapter 5
Denise J. McManus, Chetan S. Sankar, Houtson H. Carr, F. Nelson Ford
This chapter provides a new perspective on the competitive advantage of electronic mail within organizations. Essentially, e-mail assists... Sample PDF
E-mail's Value: Internal versus External Usage
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Chapter 6
Xiaotong Li, John D. Johnson
In this chapter, we discuss the real options theory and its applications in IT investment evaluation. We provide a framework within which the... Sample PDF
The Value of Managerial Flexibility in Strategic IT Investment: Identify the Real Options of Resource Allocation
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Chapter 7
Steven A. Morris, Thomas E. Marshall, R. Kelly Rainer Jr.
Pressured by the growing need for fast response times, mass customization and globalization, many organizations are turning to flexible... Sample PDF
Trust and Technology in Virtual Teams
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Chapter 8
Stuart D. Galup, Ronald Dattero, Richard C. Hicks
Knowledge management systems (KMSs) offer an environment for organizations to manage their information assets (e.g., documents, databases, etc.).... Sample PDF
An Architecture for Active and Passive Knowledge Management Systems
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Chapter 9
Anastasia Papazafeiropoulou, Athanasia Pouloudi
The revolutionary development of network technologies launched electronic commerce as a global phenomenon. Consequently, the policy issues that... Sample PDF
Social Issues in Electronic Commerce: Implications for Policy Makers
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Chapter 10
Nicholas Beaumont, Christina Costa
In Australia, popular discussion of the growing market in outsourcing information technology (IT) has been spurred by decisions of several large... Sample PDF
Information Technology Outsourcing in Australia
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Chapter 11
Gee Woo (Gilbert) Bock, Young-Gul Kim
This study theoretically examines and empirically tests factors expected to affect an individual’s knowledge sharing attitudes, intention and... Sample PDF
Exploring the Influence of Rewards on Attitudes Towards Knowledge Sharing
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Chapter 12
Craig Van Slyke, Hao Lou, John Day
Information technologies that support groups of individuals have become increasingly visible. While some of these, such as electronic mail, have... Sample PDF
Intentions to Use Groupware: The Influence of Users' Perceptions
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Chapter 13
William D. Haseman, Vichuda Nui Polatoglu, K. Ramamurthy
The study reported here investigates the influence of “interactivity” on the learning outcomes of users in a multimedia systems environment. Drawing... Sample PDF
The Influences of the Degree of Interactivity on User-Outcomes in a Multimedia Environment: An Empirical Investigation
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Chapter 14
Mikko T. Siponen
The question of whether ethical theories appealing to human morality can serve as a means of protection against information system security breaches... Sample PDF
On the Role of Human Mortality in Information System Security: From the Problems of Descriptivism to Non-Descriptive Foundations
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Chapter 15
Gurpreet S. Dhillon, John Ward
This paper introduces Chaos Theory as a means of studying information systems. It argues that Chaos Theory, combined with new techniques for... Sample PDF
Chaos Theory as a Framework for Studying Information Systems
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Chapter 16
John Pillay, Ray Hackney
The mission statement embodies certain beliefs about the management culture of the organization, which can be examined and placed within underlying... Sample PDF
Organizational Mission Statements: A Postmodernist Perspective on the Management of an IS/IT Function
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About the Authors