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...

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Main Authors:	Suhaimi, Mohd Adam, Hussin, Husnayati, Mustaffa, Muzaffar
Format:	Article
Language:	English
Published:	Emerald Group Publishing Limited 2007
Subjects:	T Technology (General)
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

id	iium-30033
recordtype	eprints
spelling	iium-300332013-07-11T04:17:11Z http://irep.iium.edu.my/30033/ Information systems outsourcing: motivations and implementation strategy in a Malaysia bank Suhaimi, Mohd Adam Hussin, Husnayati Mustaffa, Muzaffar T Technology (General) 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 Emerald Group Publishing Limited 2007 Article PeerReviewed application/pdf en http://irep.iium.edu.my/30033/1/BPMJ-outsourcing-paper-2007.pdf Suhaimi, Mohd Adam and Hussin, Husnayati and Mustaffa, Muzaffar (2007) Information systems outsourcing: motivations and implementation strategy in a Malaysia bank. Business Process Management Journal, 13 (5). pp. 644-661. ISSN 1463-7154 http://www.emeraldinsight.com/journals.htm?issn=1463-7154&volume=13&issue=5&articleid=1626623&show=abstract 10.1108/14637150710823138
repository_type	Digital Repository
institution_category	Local University
institution	International Islamic University Malaysia
building	IIUM Repository
collection	Online Access
language	English
topic	T Technology (General)
spellingShingle	T Technology (General) Suhaimi, Mohd Adam Hussin, Husnayati Mustaffa, Muzaffar Information systems outsourcing: motivations and implementation strategy in a Malaysia bank
description	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
format	Article
author	Suhaimi, Mohd Adam Hussin, Husnayati Mustaffa, Muzaffar
author_facet	Suhaimi, Mohd Adam Hussin, Husnayati Mustaffa, Muzaffar
author_sort	Suhaimi, Mohd Adam
title	Information systems outsourcing: motivations and implementation strategy in a Malaysia bank
title_short	Information systems outsourcing: motivations and implementation strategy in a Malaysia bank
title_full	Information systems outsourcing: motivations and implementation strategy in a Malaysia bank
title_fullStr	Information systems outsourcing: motivations and implementation strategy in a Malaysia bank
title_full_unstemmed	Information systems outsourcing: motivations and implementation strategy in a Malaysia bank
title_sort	information systems outsourcing: motivations and implementation strategy in a malaysia bank
publisher	Emerald Group Publishing Limited
publishDate	2007
url	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
first_indexed	2023-09-18T20:44:06Z
last_indexed	2023-09-18T20:44:06Z
_version_	1777409559163305984

Information systems outsourcing: motivations and implementation strategy in a Malaysia bank

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