| Outsourcing is on the rise in local governments with 70% reporting outsourcing one or more of their Information Technology (IT) services in the past ten years. This research study examined the trend in public sector IT outsourcing, specifically analyzing American city government's IT outsourcing experiences including frequencies, levels, types, financial factors, success rates, and success and failure factors. In addition, the role of service quality and its dimensions in perceptions of IT outsourcing success was also explored. An IT-modified version of the SERVQUAL instrument was used to solicit data on seven dimensions of IT service quality: reliability, responsiveness, timeless, training, empathy, attitude/commitment to user involvement, and relationships.; IT outsourcing relationship managers from small (populations under 25,000), medium (25,000 to 50,000), and large (over 50,000) cities were offered an opportunity to participate in this voluntary study. Of the 7,036 local governments throughout the United States (ICMA, 2003a, pp. xv--xvii), surveys were mailed to 1,000 randomly selected cities, with 334 sent to small cities, 333 sent to medium, and 333 sent to large American cities. A total of 283 valid survey instruments were returned for a survey return rate of 28.3%. However, only 198 of these 283 responding cities had IT outsourcing experience over the past ten years, and only 165 cities were currently outsourcing. This limited respondent pool shared both their IT outsourcing and IT service quality experiences.; Profiles were, developed and perceptions of IT service quality and IT outsourcing success investigated. Analysis results identified relationships between the dimensions of IT service quality and IT outsourcing success across the three city, sizes. Inferences were drawn from open-ended questions regarding the success or failure of IT outsourcing initiatives. Numerous suggestions were made by survey respondents regarding ways to improve the chances for IT outsourcing success, providing valuable insight for local government leaders in future decision-making and planning for IT outsourcing initiatives. Study findings suggested a need for further research on IT service quality and its relationship to IT outsourcing in local government. |
