Abstract:

This research study investigated the processes involved during the outsourcing of Information Technology (IT) services by the North-West Provincial Government (NWPG) of the Republic of South Africa. As its departure point, it intended to identify the best practices in IT outsourcing, the most important benefits of this process as well as the shortcomings of IT outsourcing. The study may assist the NWPG in their endeavour to outsource its IT services. The study used the quantitative approach and employed the questionnaire as a research instrument.

It was revealed that the decision to outsource can sometimes be difficult and risky. The benefits of IT outsourcing identified include access to highly experienced IT specialists as well as access to advanced technologies, making customer service better and at  high delivery quality levels.

However, the study also revealed risks associated with outsourcing such as hidden costs and loss of control on outsourced activities.In addition, outsourcing may lead to increased unemployment as well as affecting employee’s moral.