The essence of outsourcing is purchasing specialized services from external suppliers. Therefore, it is a classic make-or-buy decision, assuming the implementation of the activities that the organization can perform, due to its key competences, and the acquisition of those that the external supplier will do for us better and cheaper. On the other hand, outsourcing is the transfer of some business functions or parts of the business process to another company to optimize the company’s management structure by focusing on key activities and transferring the non-core function to external specialized contractors.
The subject of the research in the monograph is IT outsourcing (ITO). The research group consisted of 200 organizations, in the vast majority of Polish enterprises representing various sectors of the economy: industry, trade, services, logistics, education, science, research, organization and public administration.
The cognitive (theoretical) goal of the monograph was to learn, classify and verify knowledge regarding the use of structural models in research on IT outsourcing and to determine the state of development of IT outsourcing services in large organizations in Poland. The utilitarian purpose was to construct structural ITO models and verify them on empirical data on ITO in large organizations in Poland. The second utilitarian purpose was to learn about the state of development and the use of IT outsourcing, present the causes, benefits, barriers and difficulties in the development of the service and outline the prospects for its development.
The holistic approach to ITO, considered from the client’s side, led to the following research questions:
• What benefits (material and immaterial) will the organization achieve when outsourcing IT activities?
• What should be the level and scope of outsourced IT activities so that the organization’s benefits are as great as possible?
Based on such research questions, the main hypothesis of a monograph consisting of two parts was formulated. The first part of the hypothesis concerned the study of the influence (stimulating or limiting) on the level of ITO application:
• causes of ITO use (onshoring and offshoring models),
• benefits obtained through ITO,
• ITO risk (onshoring and offshoring models),
• factors influencing a successful and beneficial relationship with the service provider
• factors determining the choice of ITO provider.
It was assumed that all seven variables will have an impact on the level of application of ITO, while the following benefits will be stimulating: benefits achieved through ITO, reasons for using ITO (onshoring and offshoring), favorable relationship with the service provider and factors determining the choice of ITO provider. However, the risk factors of using ITO (onshoring and offshoring) will have a limiting effect.
The second part of the main hypothesis concerned the study (stimulating or limiting) of the influence on the overall satisfaction with ITO of the same factors as in the first part of the main hypothesis. Analogically, as in the first part of the main hypothesis, it was assumed that all seven variables will affect the overall satisfaction with ITO. It was assumed that the benefits achieved thanks to ITO would be the most stimulating. The causes of using ITO (onshoring and offshoring), the factors of favorable relationship with the service provider and factors determining the choice of ITO provider will be slightly less stimulating. The ITO risk factors (onshoring and offshoring) will limit the overall satisfaction with ITO.
Structured models constructed as well as conducted research and analyzes using the PLS-PM method (Partial Least Squares Path Modeling) allowed to verify the main hypothesis and to determine the causal relationship between the variables included in the models.
The level of ITO application is affected by all of the hidden variables tested. This impact is not the same. The reasons for the use of ITO in the onshoring model have the greatest stimulating effect, while the limiting factor has the risk of using ITO in the onshoring model. The impact of the other five variables is stimulating, but the magnitude of the impact is two or three times smaller. Positive impact of ITO risk (offshoring) is surprising. The explanation of the stimulating impact of ITO risk in the offshoring model may be the fact that the surveyed organizations using ITO in the offshoring model were significantly less than in the onshoring model. This may mean that the greater the risk of ITO delivered from abroad, the more companies use this service in the country and the higher the level of IT activities outsourced in Poland. The first part of the main hypothesis was verified almost entirely positively.
The overall satisfaction with ITO is affected by four out of seven assumed variables. The benefits of ITO have the highest stimulating effect. The causes of using ITO in the onshoring model are also stimulating, and the risk of using ITO in the offshoring model has a stimulating effect. The explanation of the stimulating impact of ITO risk in the offshoring model is analogous to the first part of the main hypothesis. However, the risk of using ITO in the onshoring model is limiting. The amount of stimulating and limiting influence of the three variables on the estimated result variable was three times lower than in the case of variable benefits achieved thanks to the ITO. The impact of the other three variables was negligible. The second part of the main hypothesis was partially verified.
The developed and verified models support decision-making on the subject and scope of IT outsourcing and show the consequences of these decisions.
The comparison of ITO in Poland to services in other countries allow to confirm the good status of ITO. Intensive development of ITO took place in Poland a bit later than in the USA and Western European countries. However, it is currently at a similar level of development to countries where its intensive development began.
The implications of the conducted and presented research have a twofold character - theoretical, showing causal relationships between outsourcing decisions regarding IT services. Practical - for company-clients and companies-providers of ITO services on factors affecting the level of outsourced IT activities and on factors that affect the overall satisfaction of the company with the use of the ITO service. Practical implications also apply to the possibility of predicting satisfaction from the application of ITO.
In the summary, a research niche concerning the limits of outsourcing was indicated. It presents a broad, new research perspective. The importance of the problem is determined, on the one hand, by the development trend of the ICT industry and the ITO field, and on the other by the economic, technological and social perspectives of outsourcing development and technological progress leading to the entry of enterprises into the “industry 4.0” path. It will certainly be an interesting research topic, but also an important question that will be faced by practitioners deciding on the scope of outsourcing in their organizations.