An investigation into the key considerations which impact decisions to undertake IT Outsourcing in the UK Banking Industry.

Premji, Sachin (2014) An investigation into the key considerations which impact decisions to undertake IT Outsourcing in the UK Banking Industry. [Dissertation (University of Nottingham only)] (Unpublished)

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Purpose – The purpose of this dissertation is to investigate the key considerations which impact decisions to undertake IT Outsourcing in a UK banking context.

Design/methodology/approach –A research framework is developed. This allowed the derivation and testing of different hypothesis. The four components of the research framework are; cost saving, access to cross-border IT expertise, freeing of managerial resource to focus on value creating activities and access to high quality innovation through IT systems and IT infrastructure. One bank is used, however access was gained with 3 different office locations of the bank. Each hypothesis is tested through a mixed method approach. Qualitative data is collected through semi-structured interviews with 5 respondents. Quantitative data is collected through electronic survey responses from 148 respondents.

Findings – Quantitative survey results showed the key consideration of; cost reduction, access to cross border IT expertise and access to high-quality innovative IT systems and IT infrastructure were strong and statistically significant. Qualitative interviews provided further exploration to this. The ability to free managerial resource and focus on value creating activity was found to be weak and statistically insignificant. Qualitative interviews also provided further exploration of this. Interestingly, the 5 interviews also showed the emergent finding of “governance” to be highly cited. However, this was not part of the initial research framework. Accordingly, the bank was re-contacted and a final interview was arranged and conducted with a senior compliance manager to provide further exploration of governance in ITO.

Research implications – An important implication is the unattractiveness of the key consideration ‘freeing managerial resource to focus on value creating activities.’ This provides a unique perspective into the plethora of ITO research which usually finds the same consideration to be a strong and statistically significant.

Originality of project – The originality of this dissertation lies in three areas. Firstly, the collection of primary data surrounding the key considerations for undertaking ITO in the banking context. This demonstrates originality given ITO studies in banking tend to use secondary data. Secondly, a robust exploration of the UK banking industry is provided with a large population of respondents whom have strong influence over ITO decisions in the bank. This demonstrates originality given very few studies have provided explorations of the UK banking context. Finally, a mixed methodology approach is used. This demonstrates originality given most ITO studies which have been conducted in the banking context have used either, qualitative or quantitative approach, however not both.

Item Type: Dissertation (University of Nottingham only)
Depositing User: EP, Services
Date Deposited: 10 Sep 2014 08:44
Last Modified: 21 Oct 2016 21:30

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