The importance of information systems (IS) for companies has grown rapidly over the recent years. For example, companies from various industries are focusing their efforts to digitize business models, to adopt agile forms of collaboration, and to leverage automation of routine tasks. This forces companies to review their IS sourcing strategies and to potentially consider alternatives for current outsourcing contracts.
One potential option could be to backsource IS services currently performed by external vendors. Based on empirical observations, previous academics defined it as the repatriation of all assets, activities, and skills needed to perform IS services back in-house, which had been outsourced previously to one or multiple vendors. The distinctive characteristic of backsourcing is the change in ownership back to the mother organization. This distinguishes the term backsourcing from similar terms, e.g., backshoring, reshoring, or relocating, which rather focus on the change in location of the service delivery. At the initial sourcing decision, the strategy to outsource an IS service was considered most promising. However, certain developments both inside the company, but also on a broader industry level may lead to a re-evaluation of the situation and thus to an adjustment of the original sourcing strategy.
Over the last years, there has been a strong increase in cloud-based services and a shift towards the deployment of standardized, almost “industrialized” applications as services. Before, large companies leveraged their size in realizing economies of scale within their sourcing volumes. The raise of cloud computing as well as standardization of service delivery decreased those benefits and led towards a decline in large outsourcing contracts across a variety of services and a growth of multi-sourcing of individual IS services from the respective “best-in-breed” vendors for shorter time periods. Besides sourcing the best vendor for each service, companies that implement multi-sourcing strategies additionally aim for cost benefits due to an increased competition between vendors, and an increase in agility and adaptability.
At the same time, a move towards multi-sourcing strategies with shorter contract durations leads to an increase in so-called “second generation sourcing decisions”, namely whether to continue outsourcing a respective service or to bring the service back in-house. Given the developments within the IS environment, this research projects aims at understanding why IS services are backsourced and which factors influence a company’s decision to backsource an IS service.
Amit Gaurav, is a 20-year veteran of the information technology industry, serves as Sr. Director of the MENA and APAC for Routeget Technologies Limited. He is responsible for the overall performance of the company’s operations in the entire APAC, MENA, and Indian subcontinent.
In this role, Amit is responsible for the long-term strategic development and execution of the company’s global operations and engineering efforts. Among his key priorities is ensuring the alignment of core business functions, including corporate financials with global supply chain operations and delivering continuous improvement – Lean – across the operations and engineering functions. Other focus areas include establishing and maintaining the policies and initiatives related to Quality, Health, and Safety.
Amit Gaurav has a wealth of experience in business management, new business acquisition, and account management. His success and extensive experience in Enterprise solutions suite and business development management are power-packed.
A family man, proud father of cutie “Aahana” and a through-and-through Barcelona & CSK supporter, Amit enjoys nothing more than kicking back at the weekend to play games with his daughter.
Amit Gaurav, is a 20-year veteran of the information technology industry, serves as Sr. Director of the MENA and APAC for Routeget Technologies Limited. He is responsible for the overall performance of the company’s operations in the entire APAC, MENA, and Indian subcontinent.
In this role, Amit is responsible for the long-term strategic development and execution of the company’s global operations and engineering efforts. Among his key priorities is ensuring the alignment of core business functions, including corporate financials with global supply chain operations and delivering continuous improvement – Lean – across the operations and engineering functions. Other focus areas include establishing and maintaining the policies and initiatives related to Quality, Health, and Safety.
Amit Gaurav has a wealth of experience in business management, new business acquisition, and account management. His success and extensive experience in Enterprise solutions suite and business development management are power-packed.
A family man, proud father of cutie “Aahana” and a through-and-through Barcelona & CSK supporter, Amit enjoys nothing more than kicking back at the weekend to play games with his daughter.
