An empirical investigation into ousourcing information technology (IT) services by the North-West Provincial Government

Abstract

The research conducted is aimed at an empirical investigation into outsourcing Information Technology (IT) services by the North-West Provincial Government (NWPG). The research seeks to identify the best outsourcing process and identify some of the most important benefits, as well as the shortcomings of IT outsourcing. The study may assist the NWPG in their endeavour to outsource its IT services. The research method adopted a quantitative research approach, and data was presented as tables and graphical displays. A questionnaire was used as a data collection instrument. The sample in this study was undertaken at the Department of Finance, NWPG. The research used the random sampling method, and data was analysed using a statistical method SPSS, and Excel. The study revealed that the decision to outsource can be hard and risky. The benefits of IT outsourcing identified, include access to highly experienced IT specialists, as well as access to advanced technologies, thereby improving customer service. However, the study also revealed risks associated with outsourcing, which includes hidden costs and loss of control on outsourced activities. Another problem generated by outsourcing is that fewer people are employed and employee morale is affected.