A new concept in today’s IT world is offshore sourcing in Information Systems which is a paradigm shift from the traditional Business Process Outsourcing. Although the latter has been facilitated by the lucrative IT infrastructure, it is important to focus and emphasis on what has brought about offshore Information System sourcing. This journal article has theoretically explored on factors which the authors considers are the key drivers that can influence a company to go offshore.
Additionally, to practically drive the point home, the article has exclusively carried out and explained a case study on ComputerInc, an Australian IT services company. Consequently, some of the key-driving factors include becoming and remaining competitive, reducing operational costs, and increasing the market share. Nevertheless, key challenges include overall strenuous management, staff demoralization, and lowered quality of services. This article is relevant in that the roles of the management for instance that of Chief Information Officer is critical in creating viable decisions.
Such include venturing into IS offshore sourcing so as to drive organizations technologically and reap benefits such as reduced operation costs (McNurlin, et al. 2009, pp. 10-13). In the article, ComputerInc is argued to have increased its global market share as a result of IS offshore outsourcing (Beverakis et al. 2009, p. 35). In this regard, McNurlin, et al. (2009, pp. 17-20) have classified roles of IT infrastructure into three: working inward, working outside, and working across. Benefits include global positioning, partnering, and increasing the clientele base if/when proper IS planning is done by the decision makers.
The article explains how viable decisions made by ComputerInc’s management drove the company into offshore outsourcing, attain a global position, and command a competitive market share (McNurlin, et al. 2009, p. 18). This corresponds to the learning outcomes of this course and for that reason I would award the article a value of four out of five on a score-scale. The Journal of Global Information Management is an academic journal published by the Information Resources Management Association.
The Editor-in-chief for this journal is called Felix B Tan of Auckland University of Technology in New Zealand. Journal of Global Information Management is published on quarterly basis every year. In each year, a single volume is released but in each quarter the released journal is assigned a separate issue number. The journal is both online and in print and it is accessible at a personal level and to institutions. However, to access the journal subscription is a must whereby printed journal goes is sold at $ 545 and $ 195 to an institution and individual respectively (JGIM 2010).
In all the issues of the Journal of Global Information Management emphasizes on all the concepts related to management of worldwide information resources. The journal creates a forum in which professionals and researchers disseminate current and surfacing information in both theoretical and practical perspective in relation to information technology and information resource management at global level. Therefore its main objective is put main emphasis on organizational and managerial aspects of Information Technology resources management.
It covers on a range of issues such as policies, failure, usage, success, applications, and strategies of IT in business enterprises both in developed and emerging economies (JGIM 2010). The Journal of Global Information Management has laid out procedures whereby professionals and researchers especially in the field of information system management share their knowledge in regard to emerging challenges, posed by IT developments. Through its case studies, the journal proposes means on how to integrate information technology techniques into current managerial strategies.
Therefore, it covers on the learning outcomes of this course such as role of IS managers, importance of IS/IT in driving companies to the global center-stage (JGIM 2010). In this article, it is acknowledged that information system offshore outsourcing has over the years increased drastically. In the research study, a number of steps involved in making such decisions at the management level have been identified. It states that IT managers weighs on the benefits and challenges of offshore outsourcing, evaluates the all the logistics involved in the process, and determines the prevailing geography.
The research is based on literature review of existing companies’ statistical reports as presented in annual releases. The article states that offshore outsourcing surpasses onshore outsourcing in terms of benefits and risks involved. USA, UK, France, and Germany are the major IS offshore outsourcers in countries such as India, and China. Reduction in operation costs has been identified as the key motivator whereas it also stresses that quality services, security, and provider location must be considered.
The key factors identified by Reyes, Jose and Juan (2006, p. 234) that influence offshore outsourcing are market and economic globalization, savings on operational costs in terms of salaries paid to the staff, shortage of skilled manpower, the need to reduce IS projects’ development time-cycle, and the growth or access to internet by large number of people (McNurlin, et al. 2009, pp. 7 & 33-39). This article demonstrates and emphasizes on key steps that information system managers of any organization have to take while making decisions on whether to outsource some of their services offshore.
In comparison, McNurlin, et al. 2009, p. 11) in their book acknowledges the same that CIO’s should design policies, analyze possible benefits and risks so as to make informed decisions. In regard to the learning outcomes of ECOM20001, the article is explicit on what chief information officers are expected to do, have presented statistical evidence on how companies expand due to outsourcing and the impact of globalization on company activities in terms of risks and benefits. Considering such coverage on E-enablement and globalization I would award the article a score of five.