A Quantitative Study on Strategic Decision Making Model
The outsourcing of Information technology has increasingly become a common occurrence as the impact of globalization and technological developments continues to demand for the quality expertise in IT. Grizzle (1995) says that companies without quality and reliable in-house expertise often opt for outsourcing in order to advance as well as transform business. However, it is obvious that companies and other institutions with strong IT capabilities also adopt the concept of outsourcing in order to address their varying IT functions. This therefore, enables them to focus on their core-operations that involve enhancing cost reduction while also promoting overall productivity. Outsourcing can also be adopted to create a positive impact on business, which may involve maximization of the overall commercial exploitation. For the process of IT outsourcing to be effective, companies should make quality decisions regarding the most appropriate outsourcing model that should be adopted to enhance the overall productivity. Such decisions should be made depending on quality assessment of the prevailing in-house IT capacities to assist in the identification of the various gaps that may need to be filled.
This study is aimed at developing the most suitable outsourcing model that can be applied in Chinese banks. In order to make a conclusion on the best outsourcing strategic model that can be used in these banks, this study seeks to undertake an investigation on the various factors influencing the decision of the outsourcing strategy for use in the banking sector in China through identifying the perceived merits and demerits of outsourcing.
Type of the Study
A quantitative methodology will be used in this study to ensure effective investigation into the issue at hand through the adoption of statistical, numerical as well as computational approaches. Olusegun (2002) says that a quantitative study approach is important since it allows for the use of mathematical models for the evaluation of hypotheses that may have been formulated on the particular phenomenon. The aspect of measurement therefore, becomes crucial in quantitative study approach since it can provide a fundamental relationship between empirical observations made and mathematical interpretations on quantitative relationships. This strategy will be of great significance in this study since it allows the researcher to ask narrow and specific questions that will enable him or her to gather samples of numerical data from those taking part in the study who will be expected to give responses to the study questions. This approach will in the same way also enable the researcher to evaluate the correlation of the collected quantitative data as this will be presented in terms of statistics and percentages. The study will also seek to answer the study questions through testing of descriptive and correlational hypotheses. Descriptive hypotheses will be useful since they will enable the researcher to ask specific questions regarding the level of outsourcing adopted within their respective places of work. Some of the descriptive hypotheses that this study will be testing include:
- The level of IT outsourcing within this institution is above average
- The level of IT outsourcing used in this institution is below average
The cor relational hypotheses will also be very important since they will allow the researcher to evaluate the link between the various factors that determine the level at which Chinese bank outsource. Below are some of the specific cor relational hypotheses that this study will be looking towards testing:
- There is a direct link between the perceived benefits at the decisions made by Chinese banks to take part in outsourcing.
- There is a direct relationship between the perceived risks and the reluctance of the Chinese banks to take part in outsourcing activities.
The type of survey used in this study will be designed in the form of online questionnaires that will help in the collection of data from various participants that will be involved in this study. The questionnaires will be appropriate in this study since they will enhance the creation of standardized questions that would be precisely aimed at gathering relevant information from the respondents. The design of the questionnaires will be in a way that can allow for statistical analysis of the collected data. All questionnaires will have the same questions for uniformity of information collected in order to enhance the validity of the tools of study in seeking responses to the study questions. These tools are especially important in this study because they are cheap and do not require much effort, time and resources unlike other forms of survey tools that may involve verbal or telephone interviews (Anstey, 2010). The researcher will use the study questions in formulating the questionnaire after which he or she will read through the finished document to make sure that it corresponds to the questions of the study. Reading through the completed document will also ensure that questions are crafted in the correct order. Rating scales will also be used in cases whereby respondents will be required to rate their responses to certain questions based on the predetermined scale of one to five. The respondents will thus be expected to apply one where they strongly do not agree with a particular variable, 2 where they just disagree, 3 where their response is neutral, 4 where they agree and 5 where they show strong agreement (Grizzle, 1995). The study questions that the researcher will be seeking response to through the questionnaires include:
- What are the main factors influencing the decision by Chinese banks to take part in outsourcing activities?
- What are the reasons behind the reluctance of Chinese banks in outsourcing?
Data Collection Plan
The study will be aimed at collecting relevant data about the adoption of IT outsourcing by various Chinese banks. The data will specifically be gathered from various respondents, including information technology managers, chief technology officers and administrators to help in determining the various factors that lead Chinese banks towards outsourcing as well as the various reasons that can hinder such firms from adopting this practice.
This study will be conducted in China and involve ten banking companies operating in Beijing, which is the country’s capital city. The selection of these institutions will depend on random sampling, whereby the researcher will be required to pick any bank provided that its two branches would not be involved in the study. However, the researcher will ensure that there is equitable representation of local, national and international banking companies that might have local branches based in Beijing. This will ensure the validity of data since various factors that might beneficial to international and national banking institutions could be risky to the local banks (Li, 2013). The person conducting the research will then choose three information technology managers, one chief technology officer and five administrators from every bank to take part in the study. The criterion applied is the selection of this sample depends on the need for the right caliber of people that can offer suitable responses to the questions of the study. The chief technology officers are important in this research since they are part of the key decision makers on various issues related to technology. Information technology managers are also important as they can provide critical information about the various in-house technological capabilities and the subsequent lapses that can be mended through IT outsourcing. Administrators are equally important since they will offer quality information on the complexity of Information technology functions that might necessitate the adoption of outsourcing activities. This approach also ensures that the sample population is able to respond to the study questions in a manner which is objective and conscientious.
Sample Research Design
The researcher will create a questionnaire that can help in gathering information for responding to the questions of the study. Besides, it will be done in a way that ensures the questions are arranged in the right order. At first, a sample questionnaire will be formulated and handed to the panel of experts for evaluation. After this, the researcher will proceed with developing copies of the sample questionnaire to making sure that all that are sent to the various respondents have the same information. The questionnaires will then be tested on a few friends so that the vague terms are identified before unleashing the data collection tools to the actual respondents. After the questionnaire has been approved by the panel of experts, the researcher will then go ahead to make copies of it and disburse to the respective respondents. A message asking the participants to take part in the study will then be sent to them via the LinkedIn network. The aim of the study will be communicated to the respondents to make sure that the information collected is genuine and not biased. The questionnaires will then be dispensed through LinkedIn to the participants who will be required to fill them in and send back to the researcher within duration of two weeks.
Data Analysis Plan
The researcher will go through all the collected questionnaires to make sure that respondents have filled in the required responses to the questions. The researcher will then download the filled in questionnaires in order to key in the details contained in the questionnaire by every individual in a spreadsheet. The researcher will after this, check the data that is already entered into the spreadsheet to ensure that the information is accurate. The SPSS software will be used in collating and analyzing the entered data in the spreadsheet. The researcher will then undertake the confirmation of the number of people that may have been selected and the responses given by each. He or she will then use the graphs, frequency tables, flow charts, histograms and pie charts to represent the data based on the various responses obtained.
Reliability of the tools of study will be enhanced by pre-testing of the data collection tools. This will be achieved through a pilot test that will involve a few friends and close associates. This will help in enhancing a random measurement of possible errors to make sure that accuracy and precision is accomplished before the study tools are sent out to the various participants in the study.
The validity of the tools of study will be enhanced through engaging a panel of experts to undertake the evaluation of the instruments of the study for identification of any possible in-built mistakes. These experts will especially ensure that the study questions are arranged systematically, and are objective to avoid biased results.
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Anstey, A. (2010). Questionnaire Development: Demystifying the Process, International Management Review, 6 (1): 45-61.
Grizzle, R. (1995). A Split Questionnaire survey Design, Journal of the American Statistical Association, 90(429): 98-101.
Hostetler, H. (2003). Outsourcing Information Technology: Assessing Your Options, SAM Advanced Management Journal, 68(4): 78-91.
Li, E.L. (2013). Study of the Decision-Making Model of Outsourcing Service Provider Selection, International Journal of U and E Service, Science and Technology, 6(2):43-52.
Olusegun, S. (2002). Selecting a Qualitative or Quantitative Research Methodology: An Experience, Educational Research Quarterly, 26(1): 45-60.