Information system outsourcing: motivations and the implementation strategy in a Malaysian bank

Suhaimi, Mohd Adam and Hussin, Husnayati and Mustaffa, Muzzafar (2007) Information system outsourcing: motivations and the implementation strategy in a Malaysian bank. Business Process Management Journal, 13 (5). pp. 644-661. ISSN 1463-7154

PDF - Published Version Restricted to Repository staff only Download (155kB) | Request a copy

Abstract

Purpose – This paper aims to aid in understanding the motivations for information system (IS) outsourcing decision and its initial implementation at one of the top commercial banks in Malaysia. The scope of the study includes the motivating factors, the implementation strategy and managing the change process. Design/methodology/approach – The study adopts a case study approach where 40 interviews were conducted among the staff, covering the management as well as non-management group. Findings – The findings of the study indicate that the motivating factors are the focus on core competencies, turning non-profit activities into profit-generating activities, and cost reduction. The implementation strategy involves the setting up of a two-tier relationship between the bank and the service provider. The challenges involved in the transition phase include managing the partnership and handling the staff transition and morale. Research limitations/implications – To some extent, there may be some subjectivity involved in interpreting the results of analysis, as with any other studies that adopt a case study approach. Practical implications – Amidst the complexity involved in any IS outsourcing endeavour, the management of a bank may learn some lessons from the experience reported in this study. At the initial stage, the bank should be concerned with the approach in establishing the partnerships and staff matters should not be undermined. Originality/value – The study provides a real life example of IS outsourcing implementation in the banking sector of a developing country.

Item Type:	Article (Journal)
Additional Information:	1394/38662
Uncontrolled Keywords:	Outsourcing, Information systems, Banking, Malaysia, Communication technologies
Subjects:	T Technology > T Technology (General) > T55.4 Industrial engineering.Management engineering. > T58.6 Management information systems
Kulliyyahs/Centres/Divisions/Institutes (Can select more than one option. Press CONTROL button):	Kulliyyah of Information and Communication Technology > Department of Information System Kulliyyah of Information and Communication Technology > Department of Information System
Depositing User:	Professor Mohd Adam Suhaimi
Date Deposited:	09 Oct 2014 16:25
Last Modified:	09 Oct 2014 16:25
URI:	http://irep.iium.edu.my/id/eprint/38662

Actions (login required)

View Item