Assessment of Factors Influencing Decision to Outsource Information and Communication Technology by Commercial Banks in Kenya

TL;DRAbstract

Information and communication technology outsourcing is a major part of outsourcing decisions by commercial banks operating in Kenya and has registered a rapid growth recently. The study sought to find out the information systems (IS) functions which were outsourced by the banks and rank the factors influencing IS outsourcing decision according to importance. To achieve this, the study adopted an exploratory study in which all the 45 banks in Kenya were studied. The study used self administered questionnaires to collect data, which was analysed using various analytical tools. The study established that commercial banks mainly outsource functions such as systems implementation, network services, software and hardware maintenance, and Automated Teller Machine (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

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