The impact of IT investment evaluation and benefits realization on the effectiveness of RFID outsourcing

Abstract

Outsourcing of information technology (IT) investment has become so widespread in recent years that it can no longer be ignored [15][35][63].Spending by firms in IT outsourcing is huge and increasing. According to Gartner [18], total spending on IT outsourcing worldwide is likely to rise from US$184 billion in 2003 to US$256 billion in 2008.Because Radio Frequency Identification (RFID) was influenced by international companies driving in recent years, there is trend of soaring year by year on the cost of RFID in enterprises. Global spending on RFID, according to Gartner, is likely to reach US$3billion by 2010[21]. However, organizations often encounter challenges and problems when implementing new IT technologies [37]. For instance, organizations are likely to face various costs, risks and uncertainties when assessing the new adopted IT technologies [36][58]such RFID. Adopting information technology can really bring benefit and help enterprise. This argument is fully supported by the research and literature. However, we do not know whether adopting this technology could really realize the anticipated benefit. The main objective of this paper is to examine adopting IT investment evaluation and benefit realization methodologies, whether help enterprise to really realize the anticipated benefit. Also, this research examines the relationship between IT investment evaluation and benefit realization methodologies.