Value Implications of IT Outsourcing Contextual Characteristics
نویسندگان
چکیده
This paper examines the financial benefits of IT outsourcing of 335 firms between the years 1990 and 2003. We find IT outsourcing to affect both ex ante (announcement day stock market returns) and ex post measures of firm performance (return on sales, return on assets, growth rate, selling, general, and administrative expenses and market valuation). Using a transaction cost economics frame, we argue and find support for the argument that contextual effects (e.g., selective sourcing, IT asset specificity, onsite vs. offsite and domestic vs. offshoring) have a significant impact on firm performance. We employ several tests of robustness including controls for size, industry, and self selection.
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