Success and failure in IT outsourcing by government agencies: two Australian case studies

Authors:
Jan Ruzzier;Amrik S. Sohal;Pooja Katna;Suzanne Zyngier
Affiliations:
Department of Management, Monash University, P.O. Box 197, Caulfield East, VIC 3145, Australia.;Department of Management, Monash University, P.O. Box 197, Caulfield East, VIC 3145, Australia.;Department of Management, Monash University, P.O. Box 197, Caulfield East, VIC 3145, Australia.;Department of Management, Monash University, P.O. Box 197, Caulfield East, VIC 3145, Australia
Venue:
International Journal of Business Information Systems
Year:
2008

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Abstract

Based on two in-depth case studies, this paper contributes to our understanding of IT outsourcing by government agencies. One of the agencies studied considered IT outsourcing to have been a successful initiative and the other considered it to be a failure. While there is no set formula that would ensure success in an outsourcing arrangement, the studies show that success or failure is directly related to the initial mechanisms in place to control the parties' interaction throughout their relationship. These cases also confirm that outsourcing is both a complex and a strategic business tool.