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    Issues and recommendations in evaluating and managing the benefits of public sector IS/IT outsourcing

    Access Status
    Fulltext not available
    Authors
    Lin, Chad
    Pervan, Graham
    McDermid, Donald
    Date
    2007
    Type
    Journal Article
    
    Metadata
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    Citation
    Lin, C. and Pervan, G. and McDermid, D. 2007. Issues and recommendations in evaluating and managing the benefits of public sector IS/IT outsourcing. Information Technology and People. 20 (2): pp. 161-183.
    Source Title
    Information Technology and People
    DOI
    10.1108/09593840710758068
    ISSN
    09593845
    URI
    http://hdl.handle.net/20.500.11937/39670
    Collection
    • Curtin Research Publications
    Abstract

    Purpose – The main purpose of this paper is threefold: to understand public-sector outsourcing in Australia; to examine the linkage between IS/IT outsourcing and the use of evaluation methodologies; and to identify issues that are critical in evaluating and managing IS/IT outsourcing contracts in public-sector organizations. Design/methodology/approach – A survey of the top 500 Australian organizations and two in-depth case studies of two Australian public-sector organizations were conducted. Findings – Several key issues for IS/IT outsourcing were identified – problems in evaluating outsourcing contracts, embedded contract mentality, ability to manage contracts, and staff transition management. Practical implications – Outsourcing organizations need to implement changes carefully and assess their in-house capabilities. They also need to fully understand and apply the IS/IT investment evaluation and benefits realization processes. In order to reach the magnitude of improvements ascribed to IS/IT outsourcing organizations need to undertake proper risk assessment and effectively manage outsourcing relationships. These all have to be done before and during the vendor/technology selection assessment and contract negotiation process. Originality/value – IS/IT outsourcing in the public sector is particularly under-studied. This study identifies several key issues for organizations undertaking IS/IT outsourcing. Recommendations are provided to assist outsourcing organizations in dealing with these issues.

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