Are IT Outsource Engagements Offering the Expected Values and Benefits?: Can it be Delivered More Productively and Cost Effectively?

Abstract

This study addresses a variety of operational aspects within the Information Technology (IT) infrastructure outsourcing arena within the South African market segment. The key issues are whether outsourcing engagements are delivered according to how customers expect the services to be and whether the possibilities exist for these types of services to be delivered at a reduced cost and at the same time increase the productivity in which the services are being delivered. The study was conducted through a narrative approach in the form of a structured in-depth interview process with 10 top executives in some of the largest organizations within South Africa. The organizations that were focused on for the research are either outsourcing service providers or customers to outsourcing service providers, all of which operate internationally. The research has shown that although these benefits are considered values that outsourcing offers, organizations within the South African market do not feel that this is the case, especially when considering costs and skilled resources.