ISSN 2756-3677
International Journal of Banking, Economics and Finance ISSN: 8201-4728 Vol. 3 (1), pp. 001-008, January, 2019. © International Scholars Journals
Full Length Research Paper
Outsourcing decision processes: A case study of a Malaysian firm
Noradiva Hamzah*, Aini Aman, Ruhanita Maelah, Sofiah Md Auzair and Rozita Amiruddin
Faculty of Economics and Business, School of Accounting, Universiti Kebangsaan Malaysia, 43600 UKM, Selangor, Malaysia.
Accepted 28 September, 2018
Abstract
There is a growth trend towards the outsourcing of accounting activities. The drivers of outsourcing emanate from organisational initiatives, improvement focus, financial and cost objectives or growth objectives. Despite the increasing practical significance of this phenomenon, the academic literature is limited to a handfull of studies concerned with the delegation of accounting functions. There are different drives and phases in the process of outsourcing but little is known on what drives accounting outsourcing and its process. Based on an in-depth case study, this paper seeks to understand the drivers and processes in accounting outsourcing. This study examines the mechanisms and practices adopted in accounting outsourcing in a Malaysian company. Interviews were conducted with vendor and client of the company studied. The findings reveal that there is no firm basis used by the company studied for evaluating its outsourcing decision.
Key words: Outsourcing, accounting, academic literature, vendor, client.