Information systems outsourcing issues in the communication technology sector

Abstract

Organisations do not have unlimited resources and, by considering outsourcing, are balancing endless requirements with organisational assets. Outsourcing allows access to expertise, knowledge and capabilities outside of the organisation’s bounds. Information systems (IS) outsourcing, as a business phenomenon, has grown as a widely accepted business tool and several reasons to consider IS outsourcing are reported. However, there is evidence that there are numerous barriers to IS outsourcing and that challenges are experienced with IS outsourcing arrangements. These challenges impact negatively on the initial intent of the reasons to outsource and result in organisations not achieving their outsourcing objectives. This paper investigates the IS outsourcing experience in the communication technology (CT) sector in South Africa through a survey among organisations in this sector. The survey results are compared to findings in similar studies in other markets and unique contributors to IS outsourcing issues in the South African context are identified.