Challenges of Outsourcing in e-Government Services in a Federal Agency in Malaysia: A Case Study

Abstract:

Heavy reliance on computers as tools or enablers of public services was reflected in Malaysia’s 2012 Budget where ICT usage was given more emphasis than before. Online public services are crucial to a country’s development as this offsets other important criteria to increase the country’s growth and wellbeing. As such, ICT allocations have continued to be prominent in the tabling of the government’s annual budget. Thus, this study is significant in providing the empirical evidence for ICT usage by assessing the feasibility of outsourcing an agency’s e-government services. Also, the findings would provide the evidence whether outsourcing a public service is feasible. This is to ensure that the e-service delivery is as effective and efficient as other online services that were not outsourced as in the case of the Malaysia Department of Insolvency (MdI). In MdI’s quest to be at par excellence with other federal offices, ensuring the accuracy, relevancy and timeliness of the department’s key responsibilities and objectives would ascertain its performance sustainability.   Of  particular contemporary interest are issues on bankruptcy where there have been calls to review the Bankruptcy Act 1967 in order to allow bankrupts to apply to be discharged from bankruptcy after three years. Automating the bankruptcy clearance processes will reduce the red tape and hence, increase efficiency.