Title: Impact of information systems outsourcing: a study of Indian banking sector

Authors: Umesh Gulla; M.P. Gupta

Addresses: TERI University, Institutional Area, Vasant Kunj, New Delhi, 110070 India. ' Department of Management Studies, Indian Institute of Technology Delhi, Hauz Khas, New Delhi, 110016 India

Abstract: In recent years information system (IS) outsourcing is increasingly being explored as an option to get the better output from the IS infrastructure. However the results of IS outsourcing are mixed. This paper has tried to assess the impact of IS outsourcing in short, medium and long term. The study also has compared the impact of IS outsourcing according to the different degree of outsourcing. The study shows that there is significant improvement in short-term impact in terms of efficiency, service level and cost savings with the increase in degree of IS outsourcing. However, in long-term, impact of outsourcing may not be favourable at high degree of outsourcing.

Keywords: selective outsourcing; India; banking; banks; infrastructures; short term impacts; medium term impacts; long term impacts; efficiency; service levels; cost savings; improvements; business information systems.

DOI: 10.1504/IJBIS.2012.047144

International Journal of Business Information Systems, 2012 Vol.10 No.2, pp.131 - 150

Published online: 31 May 2012 *

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