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The impact of IT outsourcing on IT effectiveness

Johannink, M.G. (2022) The impact of IT outsourcing on IT effectiveness.

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Embargo date:25 April 2023
Abstract:Companies with an effective IT system can make better decisions, plan better, and ultimately achieve better results. The question for companies remains whether to make those effective systems themselves or outsource them to suppliers who have, in many cases, more knowledge and expertise. Companies are outsourcing IT to a higher degree, given the increase in spending on outsourcing IT. However, are the IT systems more effective when companies outsource those systems? This research aims to assess the impact of IT outsourcing on IT effectiveness to answer that question. The results are mixed, with positive and negative outcomes in IT Effectiveness. Positive results: - Security management on Systems are easy to use; - Internal networks on System downtime is minimal; - Break/fix services on Systems can react to your shifting needs and Systems are flexible; - Test management on IT Effectiveness and Systems have fast response time and System use is easy to learn. Negative results: - Realization not IT changes on Systems meet your expectation and Your company's intranet is easy to navigate; - Coordinate IT on Systems meet your expectation; - Define information supply policy on System use is easy to learn; - System integration on Systems are easy to use. These results suggest that managers need to consider what aspects of IT they want to outsource because some of these aspects will be more effective when outsourced and some are not. The outsourcing activities with positive results are more suitable for outsourcing. The outsourcing activities with negative results are better to perform in-house.
Item Type:Essay (Master)
Faculty:BMS: Behavioural, Management and Social Sciences
Subject:54 computer science, 85 business administration, organizational science
Programme:Business Administration MSc (60644)
Link to this item:https://purl.utwente.nl/essays/90509
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