An examination of the correlative effects of it outsourcing with it agility, it strategic alignment and it effectiveness

Organizational executives are concerned with the insufficient alignment of Information Technology (IT) investments to achieve computed based information systems effectiveness. Survey results of senior executives determined that in spite of applying enormous amounts of resources and energy attempting to prioritize and effectively align these investments with the most urgent business objectives, less than 20% of these executives believed they were successful. Public and private sector executives across multiple industries were surveyed to examine the IT correlative effects of outsourcing with agility, strategic alignment, and effectiveness. One hundred eighty-six people responded to an online survey representing approximately 3% of the targeted sample population. The research design used a quantitative research strategy with correlation and regression analysis techniques to examine construct relationships. Correlation analysis showed information technology outsourcing was not significantly correlated with effectiveness (p = .113). There was a significant relationship between outsourcing and agility (p < .001) and with strategic alignment (p < .001). Information technology strategic alignment and agility showed a positive and significant correlation (p < .001) with effectiveness. Four levels of information technology outsourcing were examined using a reduced regression model that revealed significant relationships between outsourcing and agility (p < .01) when 1%-24% of the IT budget was allocated to outsourcing. The strongest regression coefficient existed between outsourcing and strategic alignment (p < .05) with 25%-74% of the IT budget allocation. This study provided empirical research results supporting IT outsourcing as a viable means for competitive advantage. There was a 57% agreement among the respondents that outsourcing improved the control of expenses, improved firm performance, and allowed a refocusing on strategic and business plans.