IT Governance or IT Outsourcing: Is There a Clear Winner?

IT Governance or IT Outsourcing: Is There a Clear Winner?

Michael D. Dorsey (Texas Woman's University, USA) and Mahesh S. Raisinghani (Texas Woman's University, USA)
DOI: 10.4018/978-1-5225-7784-3.ch002

Abstract

IT governance or IT outsourcing both have their own unique benefits but the decision to choose one over other is not always so clear. This chapter examines the impact of globalization of software development and localization of service delivery in the offshore software development and outsourcing services sector. A case study is used to illustrate the key ideas that helped contribute to a successful IT project that was outsourced by a US organization to a transnational IT outsourcing services provider based in India. The two key points illustrated by the case study discussed in this chapter are what are the issues facing a North American company that deals with an IT service supplier thousands of miles and many time zones away and what are the lessons learned from a successful outsourcing relationship.
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Literature Review And Synthesis

The concept of reinforcing your understanding and ability to meet the needs of those around you, to better your position in the market, is not a new concept. It has long been openly embraced as universal truth by those who seek to do business, both domestic and abroad, that furthering current IT infrastructure is an essential element, which leads to long-term profits while simultaneously allowing companies’ to remain relevant in a rapidly evolving market place. “IT governance is considered a more broad concept and concentrates on transforming information technology to meet the current and future demands of the business as well as the needs of the business customer” (Dawson, Denford, Williams, Preston, & Desouza, 2016). IT governance refers to “the organizational capacity exercised by the board [of directors], executive management and T management to control the formulation and implementation of IT strategy and in this way ensure the fusion of business and IT” (Dawson et al., 2016).

Key Terms in this Chapter

Credit Union: A non-profit financial institution that is owned and operated entirely by its members. Credit unions provide financial services for their members.

Transnational Management Strategy: A strategy of multinational corporations under which the overseas components are integrated into the overall corporate structure.

International Standards Organization (ISO): A network of national standards institutes from 148 countries working in partnership with international organizations, governments, industry, and business and consumer representatives. A bridge between public and private sectors.

Financial Services: The part of finance concerned with the design and delivery of advice and financial products to individuals, business, and government.

Outsourcing: The process of subcontracting network operations and support to an organization outside your company.

Requirements Analysis: The process through which you define and evaluate the business needs of your network system.

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