Information technology outsourcing in Australia

2017-06-06T01:30:35Z (GMT) by Costa, Christina Beaumont, Nicholas
In Australia there has been considerable popular discussion of outsourcing Information Technology (IT) but little academic research into its incidence and benefits. We report on research into Australian IT outsourcing conducted in 1999. The research objectives were to measure the incidence of outsourcing amongst Australian firms, identify the functions that were outsourced, the reasons why managers considered outsourcing, the costs and benefits of outsourcing, possible changes in modes of and motivations for outsourcing and factors that are associated with successful outsourcing arrangements. The three most important factors driving outsourcing in Australia are accesses to skills, improved service quality and increasing managers' focus on core business activities; cost savings are comparatively unimportant. Criteria for successful outsourcing arrangements are discussed.