IT Outsourcing

Organizational executives are concerned with the insufficient alignment of Information Technology (IT) investments to achieve computer based information systems effectiveness. Survey results of senior executives determined that in spite of applying enormous amounts of resources and energy attempting to prioritize and effectively align these investments with the most urgent business objectives, less than 20% of these executives believed they were successful. Public and private sector executives across multiple industries were surveyed in this study to examine the IT correlative effects of outsourcing with agility, strategic alignment, and effectiveness. Correlation analysis showed information technology outsourcing was not significantly correlated with effectiveness however there was a significant relationship between outsourcing and agility along with strategic alignment. This study provided empirical evidence supporting IT outsourcing as a viable means for achieving competitive advantage. There was agreement among the respondents that outsourcing improved improved firm performance and allowed a refocusing on strategic and business plans.