Challenges and risks of ICT outsourcing: perspectives from Botswana

Abstract

Outsourcing of Information and Communications Technology (ICT) is the process in which an organisation delegates tasks concerned with management, operation and maintenance of its ICT resources to an external service provider in order to improve performance. There is limited knowledge of the challenges and risks of ICT outsourcing in developing country contexts. This paper aims to contribute to this knowledge gap by focusing on the local ICT outsourcing industry in Botswana. The research approach combined a positivist and an interpretive stance to collect both quantitative and qualitative information in the public and private sector of Botswana. A survey questionnaire was administered to staff of 100 establishments that targeted senior managers responsible for ICT outsourcing. For interpretive analysis, a focus group strategy was followed by conducting a workshop consisting of 16 key managers from the public and private sector and non-government organisations. The findings show that firms are concerned with a variety of issues including lack of flexibility, security and overdependence on outsourcing firms; management of outsourcing relationships; outsourcing internationally; and loss of employee morale coupled with the habit of outsourcing firms of employing expatriates at the expense of locals. Outsourcing firms are also not happy with the policy of the main client of giving short-term contracts and splitting big jobs across many firms which leads to coordination problems and trading of blames. It is recommended that the government, being the main client should look into how outsourcing can bring efficiency in the ICT sector but at the same time be a catalyst for training of local ICT professionals.