The concept of outsourcing information technology (IT) or systems (IS) has been
around since mid 1960s. Today, outsourcing has become a potentially viable
business solution that many IT managers are looking into in order to remain
competitive in the current dynamic business and technological environment. In
Singapore, the recent IT outsourcing by DBS Bank has raised the awareness and
sparked off the interest to conduct this study. The purpose of this thesis is
therefore to investigate this latest IT trend and to look into the concepts and
practice of outsourcing in Singapore.
An intensive literature review and an empirical survey based on questionnaire
technique were conducted to learn about outsourcing concepts and practices. In
the literature review, the concepts of outsourcing were explored. The different
types of outsourcing practices and trends, categories of outsourcing services,
drivers, benefits, risks, challenges and critical success factors of
outsourcing based on the lessons learnt from past outsourcing experiences were
discussed while the survey assessed the IT/IS outsourcing trend in Singapore.
The survey revealed that outsourcing has been a positive experience. Generally,
there are differences in views between people of different roles and there is a
gap in the understanding and practice of IT/IS outsourcing in Singapore in
comparison to the literature.It is learnt in this study that outsourcing is not
a perfect and workable solution for everyone. Organizations should always stand
back and examine the outsourcing option. The bottom line is outsourcing should
always be backed by an objective business case. It should be not a decision
that blindly follows the market trend. Organiza...
