Information Technology sourcing decision framework: the case of Kenya Revenue Authority
Date
2013
Authors
Kinyua, Florence Mugure
Journal Title
Journal ISSN
Volume Title
Publisher
Strathmore University
Abstract
In recent years public organizations have turned to outsourcing Information
Technology (IT) related service operations, as a strategic option aimed at organizational
growth and attainment of its goals. Firms undertake IT outsourcing in an attempt to
lower costs, put more focus on their core business and improve quality of IT services. A
great challenge for most firms lies in expressing IT initiatives in value-for-money and
convincing the business that the most cost-effective solution is being sought.
Information technology managers have acknowledged that process frameworks are
critical determinants of successful outsourcing initiatives.
KRA plans to upgrade ICT to facilitate achievement of international best practice, raise
performance standards and reduce operational costs. To achieve these goals, KRA
needs to assess its internal technical capacity vis-a-vis outsourcing some of the IT
services and make decision on the most cost effective IT sourcing strategy.
A number of frameworks exist that attempt to explain various aspects of the
outsourcing process. The different aspects range from making the outsourcing decision,
implementing the outsourcing decision and the subsequent monitoring and
management of the outsourcing initiative. The main objective of this research was to
propose an IT sourcing decision framework that would assist decision makers form a
basis for their IT sourcing strategy.
An in-depth research into literature, articles and journals on IT sourcing was done to
establish the various aspects of outsourcing. Analysis of various available frameworks
that explain the aspects of IT sourcing decision making process with their strengths and
weaknesses is also performed. Online questionnaires administered to middle and senior
level managers at KRA were used to establish how IT sourcing decisions are currently
managed.
The various aspects of IT sourcing decision making were established as why outsource,
what to outsource and how to outsource. From the findings, it was also established that KRA practices selective sourcing where some activities are performed in-house while
others are outsourced. It was also established that there was no clear way of measuring
performance of outsourcing initiatives.
Based on these findings, an Information Technology outsourcing decision framework
was developed and validated.
Description
Submitted in partial fulfillment of the requirements for the Degree of Master of Science in Information Technology
Keywords
IT, IT Sourcing, outsourcing, Kenya Revenue Authority, ICT