The outsourcing market for information technology services has been transformed over the last few years. Outsourcing, once inspired primarily by cost reductions, now forms part of overall company strategies in order to improve focus. Intent: The purpose of this research project is to conduct a critical analysis of the outsourcing of information technology infrastructure. In particular, this paper will focus on the process followed and on adherence to good corporate governance and business ethics. This dissertation addresses (i) the strategic reasons for outsourcing, (ii) reasons for not outsourcing, (iii) the different types of models available, (iv) the outsourcing process to follow, and (v) the risks associated with outsourcing. These five aspects were all empirically tested in Trans Hex. Findings: The main findings were that (i) no recognized formal process had been followed; (ii) the risk profile of the outsourcing company changed and (iii) a post-outsourcing review is required to determine whether the process is working as planned and to identify opportunities for improvement. Conclusion: A new approach is needed to improve the viability and success of outsourcing information technology infrastructure. Based on the present findings it is argued that a holistic approach to information technology infrastructure outsourcing should be adopted which combines several outsourcing processes into a company-specific outsourcing process framework.
| Identifer | oai:union.ndltd.org:netd.ac.za/oai:union.ndltd.org:nmmu/vital:8545 |
| Date | January 2005 |
| Creators | Makka, Ferrandi W |
| Publisher | Nelson Mandela Metropolitan University, Faculty of Business and Economic Sciences |
| Source Sets | South African National ETD Portal |
| Language | English |
| Detected Language | English |
| Type | Thesis, Masters, MBA |
| Format | xi, 106 leaves, pdf |
| Rights | Nelson Mandela Metropolitan University |
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