Deciding the level of information systems outsourcing: Proposing a framework and validation with three Indian banks

Purpose – The purpose of this paper is to suggest a framework that would guide the practicing manager to decide the degree of information systems (IS) outsourcing.Design/methodology/approach – The proposed framework has been derived from the findings of a previous empirical study and qualitative inputs. Analytical hierarchy process (AHP) is then used to apply the framework. The framework is finally validated in three India‐based banks.Findings – The proposed framework helps in creating a strategic alignment between the business strategy and information system strategy. The application of the framework shows the preference of managers towards high IS outsourcing. Strategic alignment and medium term impact emerge the important factors in IS outsourcing. The validity of the framework is proved in three banks.Research limitations/implications – The validation exercise has been done on a small sample due to resources constraints and a study involving a larger sample is desired. Further, it is advised to review...

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