Impact of information systems outsourcing: a study of Indian banking sector

In recent years information system (IS) outsourcing is increasingly being explored as an option to get the better output from the IS infrastructure. However the results of IS outsourcing are mixed. This paper has tried to assess the impact of IS outsourcing in short, medium and long term. The study also has compared the impact of IS outsourcing according to the different degree of outsourcing. The study shows that there is significant improvement in short-term impact in terms of efficiency, service level and cost savings with the increase in degree of IS outsourcing. However, in long-term, impact of outsourcing may not be favourable at high degree of outsourcing.