Contributing Factors and Trends in the Usage of IT Outsourcing in Manufacturing and Service Sectors

Abstract

The study projects long-term trends in the IT outsourcing in the manufacturing and service sectors of the United States. The findings suggest that the respondents perceive that there is approximately an equal usage of IT outsourcing in each of manufacturing and service sectors. Furthermore, the Desired Characteristics of Outsourcing – enabler of organisational flexibility, dynamics, and adaptability, redirection of resources, and increased control of operating costs – are positively related to the change in the requirement of IT outsourcing in the case of manufacturing. Meanwhile for the service sector, the Administrative Motivation for Outsourcing – lack of expertise, promising service offerings to subscribe, shrinkage in system life cycle – are positively associated with growth/no-growth in IT outsourcing.