Information systems outsourcing: motivations and implementation strategy in a Malaysia bank
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 ch...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
| Published: |
Emerald Group Publishing Limited
2007
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| Subjects: | |
| Online Access: | http://irep.iium.edu.my/30033/ http://irep.iium.edu.my/30033/ http://irep.iium.edu.my/30033/ http://irep.iium.edu.my/30033/1/BPMJ-outsourcing-paper-2007.pdf |
| Summary: | 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.
Keywords Outsourcing, Information systems, Banking, Malaysia, Communication technologies |
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