Are IT Outsource Engagements Offering the Expected Values and Benefits?: Can it be Delivered More Productively and Cost Effectively?

Are IT Outsource Engagements Offering the Expected Values and Benefits?: Can it be Delivered More Productively and Cost Effectively?

Dimitris Folinas (Alexander Technological Institute of Thessaloniki, Greece) and Jan Smit (di-nostix.com, South Africa)
DOI: 10.4018/978-1-4666-4983-5.ch013
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Abstract

This study addresses a variety of operational aspects within the Information Technology (IT) infrastructure outsourcing arena within the South African market segment. The key issues are whether outsourcing engagements are delivered according to how customers expect the services to be and whether the possibilities exist for these types of services to be delivered at a reduced cost and at the same time increase the productivity in which the services are being delivered. The study was conducted through a narrative approach in the form of a structured in-depth interview process with 10 top executives in some of the largest organizations within South Africa. The organizations that were focused on for the research are either outsourcing service providers or customers to outsourcing service providers, all of which operate internationally. The research has shown that although these benefits are considered values that outsourcing offers, organizations within the South African market do not feel that this is the case, especially when considering costs and skilled resources.
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It Outsourcing: Benefits And Challenges

In this section the theoretical and background information will be provided that relates directly to the ideas and the knowledge of the IT Infrastructure Outsourcing subject. The section explains the concepts of outsourcing methodologies in detail and shows how the industry has evolved over the past years and how global enterprise organizations of all shapes and sizes are adapting outsourcing methodologies in order to promote or sustain profitability, operational effectiveness and market share.

Antonucci, et al. (1998) cover the broader concepts of outsourcing and ultimately explains what the considerations are when engaging in outsourcing services. When organizations make use of outsourcing services there are a number of benefits that they can capitalize on such as access to state of the art technology, cost savings and quality, better flexibility, better job security for staff, expertise and reliability of their systems.

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