Exploring the perception and practices of IT outsourcing among Malaysia SMEs: Receivers perspective

IT outsourcing, a mean of acquiring IT resources externally, has become a popular trend worldwide not only among large organizations but also among small and medium-sized enterprises (SMEs). The uptake of IT outsourcing among SMEs in developing countries are noticeable, especially in the context of Malaysia. Knowing the state of preparation by SMEs toward IT Outsourcing and their experiences of using it are vital in order to further analyse the issue and underscore the future trend of ITO in Malaysia. Therefore, this study was undertaken to understand how SMEs in Malaysia prepare themselves to ITO, and how their perceptions and experiences of ITO influence the future inclination to it. The objective of the study was to examine the current scenario of IT outsourcing practices among Malaysia SMEs. Based on a survey conducted, descriptive analysis was performed on the data. The findings revealed that closely half of the SMEs have adopted ITO due to its various advantages. The results imply that there is positive indication among the SMEs toward ITO adoption, which adds credit to overall ITO expansion in Malaysia. Recommendations and discussions incorporate the roles of SMEs and the government toward ITO trend in Malaysia particularly among SMEs.