Outsourcing information systems: drawing lessons from a banking case study

L P Baldwin, Z Irani and P E D Love

European Journal of Information Systems, 2001, vol. 10, issue 1, 15-24

Abstract: Financial and costs benefits are often put forward as the reasons why organisations decide to outsource. Emerging patterns and trends indicate that today's outsourcing decisions are often motivated by factors other than cost. Thus, the decision-making process is more complex than it may at first appear. This paper presents findings from a case study from an organisation in the UK banking sector that was motivated to outsource aspects of its information technology/information system (IT/IS). The underlying motives and decision-making process that influenced the bank outsource its IT/IS are presented and discussed. Findings from the case study suggest political perspectives, as well as human and organisational issues influenced the bank's strategic decision-making to outsource certain aspects of its business. An examination of the case study findings suggests that cost alone is not always responsible for decisions to outsource, as it was found the bank's outsourcing decision was driven by a series of complex, interrelated motives in a bid to reduce the risks and uncertainties of managing its own technology. Considering the complex nature of the outsourcing process a frame of reference that can be used to assist managers with their decision to outsource IT/IS is propagated. The case study is used to present an organisation's experiences as to how and why it decided to outsource its IS and thus offers a learning opportunity for other organisations facing similar difficulties. In addition, the case study findings highlight the need to focus greater attention on discriminating between the short and long-term consequences of IT/IS decision-making.

Date: 2001
References: Add references at CitEc
Citations: View citations in EconPapers (6)

Downloads: (external link)
http://hdl.handle.net/10.1057/palgrave.ejis.3000372 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:taf:tjisxx:v:10:y:2001:i:1:p:15-24

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/tjis20

DOI: 10.1057/palgrave.ejis.3000372

Access Statistics for this article

European Journal of Information Systems is currently edited by Par Agerfalk

More articles in European Journal of Information Systems from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().