Understanding the outsourcing decision in South Africa with regard to ICT

Information and Communication Technology (ICT) outsourcing is a strategic initiative adopted by many organisations across all industries. Outsourcing is seen as a means for organisations to concentrate and improve their core business functions. Despite the vastly dynamic environment businesses opera...

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Main Authors: K. A. Johnston, T. Abader, S. Brey, A. Stander
Format: Article
Language:English
Published: AOSIS 2009-12-01
Series:South African Journal of Business Management
Online Access:https://sajbm.org/index.php/sajbm/article/view/549
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author K. A. Johnston
T. Abader
S. Brey
A. Stander
author_facet K. A. Johnston
T. Abader
S. Brey
A. Stander
author_sort K. A. Johnston
collection DOAJ
description Information and Communication Technology (ICT) outsourcing is a strategic initiative adopted by many organisations across all industries. Outsourcing is seen as a means for organisations to concentrate and improve their core business functions. Despite the vastly dynamic environment businesses operate in, few global studies have uncovered the factors influencing outsourcing decisions, thus the need for this paper. The research was performed using a number of statistical tests and descriptive analysis methods to explore the literature and to determine the current status of South Africa’s ICT outsourcing market. Key findings reveal that cost is the most influential factor when deciding whether to outsource or not, irrespective of organisations size or type. Other important factors include concentrating on core-functions, and the availability of in-house expertise. The form of outsourcing used is not affected by the size of the organisation. Application Service Providers (ASP) is the most common form, followed by co-sourcing.
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spelling doaj.art-bbfd19362352422193a673704c7456c62022-12-22T03:25:24ZengAOSISSouth African Journal of Business Management2078-55852078-59762009-12-01404374910.4102/sajbm.v40i4.549273Understanding the outsourcing decision in South Africa with regard to ICTK. A. Johnston0T. Abader1S. Brey2A. Stander3Department of Information Systems, University of Cape TownDepartment of Information Systems, University of Cape TownDepartment of Information Systems, University of Cape TownDepartment of Information Systems, University of Cape TownInformation and Communication Technology (ICT) outsourcing is a strategic initiative adopted by many organisations across all industries. Outsourcing is seen as a means for organisations to concentrate and improve their core business functions. Despite the vastly dynamic environment businesses operate in, few global studies have uncovered the factors influencing outsourcing decisions, thus the need for this paper. The research was performed using a number of statistical tests and descriptive analysis methods to explore the literature and to determine the current status of South Africa’s ICT outsourcing market. Key findings reveal that cost is the most influential factor when deciding whether to outsource or not, irrespective of organisations size or type. Other important factors include concentrating on core-functions, and the availability of in-house expertise. The form of outsourcing used is not affected by the size of the organisation. Application Service Providers (ASP) is the most common form, followed by co-sourcing.https://sajbm.org/index.php/sajbm/article/view/549
spellingShingle K. A. Johnston
T. Abader
S. Brey
A. Stander
Understanding the outsourcing decision in South Africa with regard to ICT
South African Journal of Business Management
title Understanding the outsourcing decision in South Africa with regard to ICT
title_full Understanding the outsourcing decision in South Africa with regard to ICT
title_fullStr Understanding the outsourcing decision in South Africa with regard to ICT
title_full_unstemmed Understanding the outsourcing decision in South Africa with regard to ICT
title_short Understanding the outsourcing decision in South Africa with regard to ICT
title_sort understanding the outsourcing decision in south africa with regard to ict
url https://sajbm.org/index.php/sajbm/article/view/549
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