An Assessment of IT Outsourcing Practices in the North-West Provincial Government: South Africa

Abstract

This study investigated practices that are followed when outsourcing Information Technology (IT) services in the North-West Provincial Government (NWPG) of South Africa. NWPG is a tier two level in the South African government structure and lies in between the national and the local governments. As a departure point, the research study identified the best practices in IT outsourcing, the most important benefits of this process as well as the shortcomings of IT outsourcing. The study is a culmination of requests from the provincial government stakeholders to have a framework of IT outsourcing best practices which is currently not available. The study used quantitative approach and a questionnaire as a research instrument. Findings revealed that the decision to outsource can sometimes be difficult to make and is risky. However, it also identified some benefits of IT outsourcing such as access to highly experienced IT specialists, access to advanced technologies, as well as improvement in customer service quality. Some risks associated with outsourcing such as hidden costs and loss of control on outsourced activities was also revealed. In addition, outsourcing may lead to increased unemployment and may negatively affect employees’ morale. It is recommended that NWPG should adopt an outsourcing plan that will guide its outsourcing process as well as establishing a clear understanding of its requirements, performing due diligence as well as carrying out of risk assessment during this process. Efficient and open communication channels between staff and management levels should also be developed.

DOI: 10.5901/mjss.2014.v5n14p25