The impact of outsourcing information technology services on business operations

Abstract

Background: Organisations outsource Information Technology (IT) services in order to keep up with the IT evolution and to remain competitive. Although the IT operations department is responsible to manage service provider service quality, they are not in a position to evaluate IT services performance because of the loss of control and capability in the IT environment. Objectives: This article investigated the impact of outsourcing in-house IT services on the performance of IT operations and how it affects the performance of the organisation. Methods: The qualitative approach was used in this research. Data was collected using structured interviews and were analysed using thematic analysis. Results: Outsourcing of IT services was found to have negative and positive impact on the organisation. Knowledge of the operating environment proved to be significant in the provision of relevant services that add value to the organisation. The results of the analysis revealed that in-house IT and the quality of IT services provided have a direct impact on the performance of the organisation. Conclusion: The study demonstrated that outsourcing IT services impacts the quality and the performance of the organisation positively and negatively. The study recommended that in-house IT and outsource service providers need to collaborate to ensure smooth service delivery, process alignment and also to equip in-house IT with skills to handle first-line support.

Keywords

• it services
• in-house it
• service provider
• it outsourcing
• impact
• service quality
• organisational performance
• it environment
• service level agreement