Abstract: In the last fifteen years, academic research on information systems (IS) outsour ...
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Abstract: In the last fifteen years, academic research on information systems (IS) outsourcing has evolved rapidly. Indeed the field of outsourcing research has grown so fast that there has been scant opportunity for the research community to take a collective breath, and complete a global assessment of research activities to date. This paper seeks to address this need by exploring and synthesizing the academic literature on IS outsourcing. It offers a roadmap of the IS outsourcing literature, highlighting what has been done so far, how the work fits together under a common umbrella, and what the future directions might be. In order to adequately address the immense diversity of research on IS outsourcing and outsourcing in general, we develop a conceptual framework that helps us to categorize the literature. In particular, we look at the research objectives, methods used and theoretical foundations of the papers. In identifying the major research objectives, we view outsourcing as an organizational decision process and adapt Simon's stage model of decision making. This allows us to identify five major sourcing issues, from which at least one is covered by each academic article. These are the questions of <i>why</i> to outsource, <i>what</i> to outsource, <i>which</i> decision process to take, <i>how</i> to implement the sourcing decision, and what is the outcome of the sourcing decision. In analyzing the literature, we identify and structure the main explanatory factors and theoretical relationships within each of these sourcing stages. Based on our discussion of the research objectives, theoretical foundations and research approaches taken in the literature, we show how the various research streams hang together and we come up with a number of implications for research. Moreover, we identify a number of emerging sourcing issues. We believe that research on these "new" phenomena such as offshore outsourcing, application service providing and business process outsourcing would benefit from 'standing on the shoulders' of what has already been accomplished in the field of IS outsourcing.
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Semantic filters:
asset specificityIT planning
Topics:
outsourcing IS sourcing decision making business function anonymity
Methods:
literature sample literature study survey case study qualitative interview
Theories:
transaction cost economics resource based view of the firm core competency theory organizational theory
The Effect of Service Quality and Partnership on the Outsourcing of Information Systems Functions
1996 | Journal of Management Information Systems | Citations: 523
Authors: Grover, Varun; Myun Joong Cheon; Teng, James T. C.
Abstract: Numerous corporations today are outsourcing specific information systems (IS) fu ...
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Abstract: Numerous corporations today are outsourcing specific information systems (IS) functions. The diversity of these outsourcing arrangements goes well beyond that associated with the more traditional facilities management. This paper examines outsourcing trends and reports the results of an empirical study on IS outsourcing. Overall IS outsourcing and its five component functions namely, applications development, systems operations, telecommunications, end-user support, and systems planning and management--are examined for their relationships with outsourcing success. The effect of service quality of the provider and the ability of companies to build a partnership on these relationships are hypothesized and studied. Data from senior executives in 188 companies are gathered. Outsourcing success is found to be highly related to the degree of outsourcing of two functions, systems operations and telecommunications. The results indicate that transaction cost theory provides a good framework for IS outsourcing and that asset specificity of outsourcing transactions needs to be considered in any decision to outsource. Also, both service quality of the vendor and elements of partnership such as trust, cooperation, and communication are important for outsourcing success. Implications of the study for research and practice are discussed.
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Semantic filters:
asset specificityIT planning
Topics:
outsourcing service quality systems operations communication service infrastructure IT planning
