The Effectiveness of Different IT Outsourcing Models on Cost, Quality, and Innovation

Abstract

Outsourcing trades off efficiency advantages for decreased adaptability, therefore a business's capacity for problem-solving is required to minimise the trade-off between profitability and flexibility. To save money and time, non-core duties are assigned to outside contractors through outsourcing. In times of technological advancement, where efficiency and flexibility may conflict, it affects problem-solving techniques. Increased productivity, reduced loads from legacy systems, strategic application development, and improved customer satisfaction are all advantages of outsourcing IT services. The globalisation of the IT industry has fuelled a growing trend known as information technology outsourcing (ITO). Cost savings, difficulties in managing internal IT teams, and the availability of qualified employees all have an impact on the decision to outsource. Successful business operations depend on developing good client-vendor relationships based on prompt delivery, adherence to quality standards, and long-term collaborations. The study had considered sample of 232 respondents from IT industries of India to know the effect of different IT outsourcing models on Cost, Quality and Innovation and concludes that there is a significant effect of different IT outsourcing models on Cost, Quality and Innovation.