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A dialectic view of information systems outsourcing: Pros and cons

UNCG Author/Contributor (non-UNCG co-authors, if there are any, appear on document)
Prashant Palvia, Joe Rosenthal Excellence Professor and Director of the McDowell Research Center for Global IT Management (Creator)
Institution
The University of North Carolina at Greensboro (UNCG )
Web Site: http://library.uncg.edu/

Abstract: In recent years, information systems (IS) outsourcing is increasing in business organizations as a way to govern their IS operations. Burgeoning IS costs, lack of IS organization's responsiveness to users, and a renewed emphasis on return on IS investment are among some of the reasons towards this trend. Media reports are almost unanimous, and at times euphoric, in their claims of benefits. However, a reporting bias must be recognized: first, these reports are, at best, anecdotal accounts and second, they are based on the accounts of outsourcing vendors, consultants, senior executives and those who remained or were promoted in the organization after the outsourcing act. Naturally, these individuals have a vested interest in making their decisions look beneficial. This article discusses the various advantages and pitfalls of IS outsourcing, based on a dialectic view. It provides a balanced perspective, as it is based on a real case discussed by two individuals who were on opposing sides of the fence: one was an outsourcing survivor and was promoted, and the other was terminated due to decisions related to outsourcing.

Additional Information

Publication
Information & Management, Vol 29, 1995, pp. 265-275.
Language: English
Date: 1995
Keywords
IS outsourcing, IS management, IS downsizing, IS in financial institutions, Dialectic IS study, IS personnel issues