DETERMINANTS OF EFFECTIVE INFORMATION TECHNOLOGY OUTSOURCING PROJECTS: A CASE OF SEVEN SEAS TECHNOLOGY GROUP
Abstract
Information Technology Outsourcing has been accepted as part of modern business practices. The global market capitalization of IT Outsourcing is predicted to be more than $260 billion in 2018. However, IT Outsourcing projects are not an easy task to manage and many projects fail due to problems in partnership, technology shifts, ineffective communication and lack of risk planning. In the current decade, IT Outsourcing appears to be losing ground and other options are being considered and sought, such as selective outsourcing. It has long been thought that IT outsourcing is motivated primarily by cost cutting in the IT department but the latest trends suggest that outsourcing is more about improving usage of internal resources and service satisfaction. The objective of this study was to assess determinants that contribute to effective Information Technology Outsourcing Projects with reference to Seven Seas Technology Group. The study used descriptive survey design which necessitates collection of both qualitative and quantitative data. The target population comprised of 150 employees of Seven Seas Technology Group, Nairobi Office. This included department heads supervisors and support staff in various departments. Stratified sampling technique was used to obtain a sample of 108 respondents. From each stratum, simple random sampling was used to select the respondents for the questionnaires which were the primary data source. From the 108 sample respondents, 96 filled in and returned the questionnaires making a response rate of 89%.Quantitative data in this research was analyzed by descriptive statistics using statistical package for social sciences SPPS (V.22.0). The study found out that partnership had a positive influence on IT Outsourcing. The study also found out that communication had a positive influence on effective IT Outsourcing Projects. The study finally found out that risk planning had a positive influence on IT Outsourcing Projects. The study concluded that partnership had the highest influence on the success of IT Outsourcing Projects followed by communication, then risk planning while technology shifts had the lowest influence on effective of IT Outsourcing Projects. The study recommended that organizations should leverage their assets, resources and capabilities before entering into a partnership. Organizations should align IT strategy with corporate strategy and optimize delivery of IT services to better meet business needs and satisfy their customers. The study also recommended that organizations should put into operation an effective communication process which is a core determinant of the success of IT Outsourcing Projects.
Key Words: Partnership, Technology Shift, Communication, Risk Planning, IT Outsourcing Projects
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DOI: http://dx.doi.org/10.61426/sjbcm.v3i3.282
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