Issues and recommendations in evaluating and managing the benefits of public sector IS/IT outsourcing
C Lin, G Pervan, D McDermid - Information Technology & People, 2007 - emerald.com
C Lin, G Pervan, D McDermid
Information Technology & People, 2007•emerald.comPurpose–The main purpose of this paper is threefold: to understand public‐sector
outsourcing in Australia; to examine the linkage between IS/IT outsourcing and the use of
evaluation methodologies; and to identify issues that are critical in evaluating and managing
IS/IT outsourcing contracts in public‐sector organizations. Design/methodology/approach–A
survey of the top 500 Australian organizations and two in‐depth case studies of two
Australian public‐sector organizations were conducted. Findings–Several key issues for …
outsourcing in Australia; to examine the linkage between IS/IT outsourcing and the use of
evaluation methodologies; and to identify issues that are critical in evaluating and managing
IS/IT outsourcing contracts in public‐sector organizations. Design/methodology/approach–A
survey of the top 500 Australian organizations and two in‐depth case studies of two
Australian public‐sector organizations were conducted. Findings–Several key issues for …
Purpose
–
The main purpose of this paper is threefold: to understand public‐sector outsourcing in Australia; to examine the linkage between IS/IT outsourcing and the use of evaluation methodologies; and to identify issues that are critical in evaluating and managing IS/IT outsourcing contracts in public‐sector organizations.
Design/methodology/approach
–
A survey of the top 500 Australian organizations and two in‐depth case studies of two Australian public‐sector organizations were conducted.
Findings
–
Several key issues for IS/IT outsourcing were identified – problems in evaluating outsourcing contracts, embedded contract mentality, ability to manage contracts, and staff transition management.
Practical implications
–
Outsourcing organizations need to implement changes carefully and assess their in‐house capabilities. They also need to fully understand and apply the IS/IT investment evaluation and benefits realization processes. In order to reach the magnitude of improvements ascribed to IS/IT outsourcing organizations need to undertake proper risk assessment and effectively manage outsourcing relationships. These all have to be done before and during the vendor/technology selection assessment and contract negotiation process.
Originality/value
–
IS/IT outsourcing in the public sector is particularly under‐studied. This study identifies several key issues for organizations undertaking IS/IT outsourcing. Recommendations are provided to assist outsourcing organizations in dealing with these issues.