Abstract : In this essay, we discuss a journal article on the influences, restrictions and the success factors that relate to the aspect of IT outsourcing, and associate the findings to assist the Ingleburn health care center's system development approach. The context of the paper is built upon IS outsourcing decisions and the related feedback gathered from IS managers at public universities in Spain. Although the universities resemble a dissimilar background compared to Ingleburn healthcare center, most of the research outcomes and characteristics can be applied in favor of the system development decision that Ingleburn needs to make. Since the Ingleburn case does not mention about the availability of any technical competencies that can handle the IS development task itself, a fair recommendation would propose that the health care center management should respond to a (customized) questionnaire based on the under mentioned research and arrive to a clear conclusion about their outsourcing options.
Introduction : Ingleburn’s requirement focuses on a new computerized system to manage its processes involving mostly administrative routines. (Burke & Menachemi, 2004) The case study underlines six functional workflow operations that need to be computerized. With no IT skilled resources referred to in the case study, it is safe to assume that the system cannot be achieved through an in-house development method. Consequently, we focus on how Ingleburn may successfully decide to outsource this task to an external development firm to obtain the desired results.
We pick a journal paper that references a survey that can help Ingleburn to identify the concerns that they should be cautious about, highlight factors that lead to the success of the outsourcing process, and perform the selection of the IS provider for the task. The selected paper is a presentation on the results of a survey, based on IS outsourcing project findings: "Information System outsourcing - reasons, reservation and success factors". (Claver, Gonzalez, Gasco, & Llopis, 2002)
Description: The paper lists the influences that encourage IS outsourcing derived from previous studies, which in turn are used to construct part of the survey questions. The list includes: saving IS staff costs, increasing flexibility of IS the department, approach adapted with relation to strategic problems, externalizing routine tasks, focusing on the firm’s business, improving IS service quality, accessibility to high-skilled staff and technology, risk transferring and having alternative IS. (Baldwin, Irani, & Love, 2001) (Dekleva, 1994) (Jones, 1997) (Lacity & Hirschheim, 1999) (McFarlan & Nolan, 1995) (McLellan, Marcolin, & Beamish, 1995)
Secondly, factors regarding three aspects of outsourcing are acquired from work conducted by related authors - reluctant factors for IS outsourcing, factors that lead to the success of outsourcing and selection criteria for external IS providers – and they were used to form the rest of the questionnaire. (Akomode, Lees, & Irgens, 1998) (Dué, 1992) (Earl, 1996) (Fried, 1995) (King & Malhotra, 2000) (Chen & Lin, 1998) (Jones, 1997) (Lacity & Willcocks, 1998) (Lee, 2001) (McFarlan & Nolan, 1995) (Martinsons, 1993) (Saunders, Gebelt, & Hu, 1997) (Collins & Millen, 1995) (Heeks, Krishna, Nicholson, & Saharf, 2001) (Perry & Devinney, 1997; Shepherd, 1999)
Finally, the resulting questionnaire was submitted to IS managers in 47 public universities in Spain, where 35 valid responses were received. The subjects had to prioritize each factors in the questionnaire listings based on their experience on IS outsourcing.
The end results were treated with cluster analysis to derive three typology groups of universities, according to their IS outsourcing strategies: Perfectionist, Hesitant and Cost-reducing. (See Table 1: Typology of universities)
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Table 1: Typology of universities
Source: (Claver, Gonzalez, Gasco, & Llopis, 2002)
The authors have practiced highly profound standards and comprehensively demonstrated each of the survey steps in detail. However, they presumed that Universities own a “ very complex type of IS department ” which does not seem sufficiently appealing. Simply referring to Ingleburn’s case may reveal that its final computerized information system might be equally complex.
Critical Evaluation : The work reflects proper organization of data assimilated from the study. It displays both universities’ and the targeted IS managers’ profiles that sourced the data for the journal, followed by the priority voting responses for each categories of above mentioned factors. A separate descriptive comment supports a single group of data collected.
Most importantly, the authors have maintained the logical competency of the cluster analysis, by including the reservations, success factors and selection criteria for the outsourcing decision, outsourcing project and outsourcing firm respectively.