Abstract
The importance of outsourcing information
technology (IT) has been exiting since mid 1960s. Today,
outsourcing has become a potentially viable business solution
that many IT managers are looking into in order to remain
competitive in the current dynamic business and technological
environment. In India, the recent IT outsourcing by has raised
the awareness and sparked off the interest to conduct this study.
The purpose of this paper is therefore to investigate this latest IT
trend and to look into the concepts and practice of outsourcing in
India. An intensive literature review and an empirical survey
based on questionnaire technique were conducted to learn about
outsourcing concepts and practices. In the literature review, the
concepts of outsourcing were explored. The different types of
outsourcing practices and trends, categories of outsourcing
services, drivers, benefits, risks, challenges and critical success
factors of outsourcing based on the lessons learnt from past
outsourcing experiences were discussed while the survey assessed
the IT outsourcing trend in India. The survey revealed that
outsourcing has been a positive experience. Generally, there are
differences in views between people of different roles and there is
a gap in the understanding and practice of IT outsourcing in
India in comparison to the literature. It is learnt in this study that
outsourcing is not a perfect and workable solution for everyone.
Organizations should always stand back and examine the
outsourcing option. The bottom line is outsourcing should always
be backed by an objective business case. It should be not a
decision that blindly follows the market trend. Organizations
should not simply jump into the outsourcing bandwagon without
fully comprehending the outsourcing concept. Thorough
evaluation of the feasibility of such business venture is necessary.