1.1.

Background Information

INFORMATION is the most valued asset in today's business world. All decisions at different levels in an organisation are dependent upon it. The need is to provide accurate information in its right form to the required business group at the right time. TECHNOLOGY is the appropriate means that can effectively fulfil this requirement. It can capture, process, store and make information accessible in an efficient and presentable manner. Therefore, Information with the help of Technology i.e. Information Technology (IT) has emerged as a significant contributor in making strategic decisions and achieving business goals of the organisation. Due to its importance and relevance, IT departments, over the years, have become an integral part of the organisation structure. Dynamically evolving business operating models and high competitiveness has made the job of IT department more challenging in aligning the business and IT needs. The structure of the information and its processing needs is becoming more complex day by day. However, it is not necessary for them to have all the required competencies to support the complexities of the operations. Reasons may be dearth of skilled resources, high cost, old proprietary systems, exorbitant human resource overheads or simply, lean management. In these cases, the IT departments outsource the operations to third-party vendor which can effectively and more efficiently support them.

1.2.

Statement of the Problem

In IT outsourcing, firms often need to reveal confidential information to third party vendors. A firm has to determine the critical success factors of its IT department; and to evaluate whether to proceed with IT outsourcing or to rely on in-house development as a strategic decision to achieve its business goals. This study makes use of appropriate strategic management tools and models to provide insights into the decision-making process."

1.3.

Study Objectives

The project study has been done to gather details from organisations that are highly dependent upon IT. The objectives are to Collect information from the IT department of the organisations related to: Percentage of business operations automated Percentage of automation handled in-house and outsource Outsourcing models implemented ROI from the automation and from outsourcing Future plans in pipeline for in-house or outsource

Compute the current trends in terms of outsourcing versue in-house development in different industries. Analyse the strategic issues governing these trends and compare the details with the other emerging trends and development strategies employed by organisations to stay competitive in the global marketplace.

Conceive and infer models and suitable strategies to help organisations (of similar industry) in their decision-making process.

1.4.

Scope of the Study

The following points will guide the scope of the project Survey Study is limited to organisations based in Singapore that belong to sectors like Transport, Banking, Retail and Manufacturing. Research study of existing Global Outsourcing market Restrict the study to outsourcing of IT processes within the organisation. Other business processes outsourced not related to IT are not covered. Study has involved only IT Personnel from the organisation. Views from other personnel from non-IT department are not included and analysed.

1.5.

Implications of the Study

The study will enlighten the readers in following areas 2

Current trends of IT outsourcing in major organisations in Singapore. Why organisations are opting for either In-house development or Outsourcing. Strategies developed based on the data collected and the use of appropriate Strategic Management tools and models to help organisations (of similar industry) in their decision-making process.