Dr. Freddie Acosta has written a paper entitled Assessment of Factors Influencing Decision to Outsource Information and Communication Technology by Commercial Banks in Kenya, with MCOM Alumnus Edward Muchai. The paper was accepted for publication at the DLSU Business & Economics Review for its June 2012 edition. The paper established that commercial banks mainly outsource functions such as systems implementation, network services, software and hardware maintenance and ATM services. The study further established that factors such as cost, desire for quality, size of organization and business strategy among others influenced the banks decisions to outsource IS functions to a large extent. The study established that the small banks had a higher level of IS outsourcing as compared to large and medium banks.
This is attributed to lack of technical capacity and need to deliver quality service at a minimal cost. The study revealed that operational costs was ranked as number one driver of outsourcing decision by commercial banks operating in Kenya followed by the desire for quality and organizational size respectively. The study concluded that though cost was the main driver of outsourcing decision, there existed other factors which were equally important such as desire for quality and business strategy among others.
The DLSU Business & Economics Review publishes high quality theoretical, empirical, and ethodological research in the fields of accounting, business management, commercial law, economics, finance and marketing. The articles published must meet the high standards of scholarship and should be able to make significant contributions to the business and economics discipline and stimulate interest in further research. The journal is published twice a year. The paper is abstracted and indexed in EBSCO, accredited by the Commission on Higher Education of the Philippines, and available on the World Wide.
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