A Longitudinal Analysis of IT Outsourcing in Large Polish Organizations

Purpose: The purpose of the research was to determine the dynamics of the development of information technology outsourcing (ITO) in large organizations in Poland. The development of onshoring and offshoring was examined, the types and forms of services most commonly outsourced, the recipients of services within the organization, multi-sourcing, contract duration, method of payment, the impact of the Covid-19 pandemic on ITO, and the organization’s plans for ITO. Design/Methodology/Approach: Longitudinal methods (extracting over time, mapping, visualization) were used. A diagnostic survey was used to collect data on ITO, the research tool was a survey questionnaire. Data was collected using the CATI (Computer Added Telephone Interview) method in the periods January-February 2016 and January-February 2021. Each time, 200 large organizations in Poland participated in the research. The research problem concerned the dynamics of ITO development in Poland. The research questions included the determination of the dynamics of ITO development assessed from the client's side, the types and forms of services that are developing most dynamically, changes in the features of outsourcing contracts, the exchange of enterprises regarding ITO and the impact of the pandemic on ITO activities. Findings: The use of IT outsourcing in large organizations in Poland is growing, the rate of development dynamics by a big percent, especially in relation to offshoring. Outsourcing of more complex and business-critical activities and the use of cloud services are growing. Specialization and multi-sourcing are on the rise. Outsourcing contracts tend to be signed for a short period of time or the duration of the contract depends on the specifics of the project. However, there is a tendency to extend cooperation in outsourcing. The most common form of payment for services is a fixed price, although there is a trend towards other forms of payment. The COVID-19 pandemic had a weak but rather positive effect on the use of outsourcing. Companies plan to maintain the current relationship between internal and external services or expand ITO. These trends are expected to continue. Practical Implications: ITO suppliers may be advised to specialize their services and offer a wider range. Customers – prudent supplier selection and multi-sourcing. Originality/Value: The trends in the development of IT outsourcing in large organizations in Poland and changes occurring in outsourcing contacts were determined.