IT outsourcing is a hot topic in today’s demanding environment. Many organizations start to outsource information technology in order to achieve benefits such as cost reduction, improve quality of service, and focus on the core competence. However, IT outsourcing projects are not an easy task to manage and many projects fail even though there exists a lot of research within the area. In order t...

This article explores the IT offshore outsourcing phenomena and discusses the predictors of firm’s adoption level of offshoring practice. The authors draw on transaction cost economics, culture theories, integrated social contract theory, and institutional theory to examine the offshore outsourcing impetuses and investigate the related research issues. The multitheoretic lens highlights the int...

This research uses transaction cost theory to investigate IT outsourcing, allowing for intermediate modes of outsourcing. Results suggest that the governance mode chosen by firms to govern their IT activities is guided by cost-minimization considerations. The major transactional determinant of the governance mode choice is the need for technical and/or organization skills. This constitutes a st...

IT-Supported International Outsourcing of Software Production Chunling Wu and Anicet Yalaho Jyväskylä, University of Jyväskylä, 2002. Pp. 172 This study analyses how the IT supported international outsourcing of software production process is executed. We present essential ideas and theoretical background for our study through an in-depth literature review in the areas of subcontracting, outsou...

Purpose – Within an IT outsourcing relationship, transition represents a critical and complex phase that starts immediately after contract signing. Transition involves handing over outsourced activities from client firm to service provider firm and accompanies a new way of operating. The purpose of this paper is to determine and detail factors influencing the performance of transition phase wit...

The transfer of all or part of information technology (IT) functions from the user organization (client) to external (vendor) organization(s), known as IT outsourcing, has recently been the subject of numerous articles. Many research studies in this area conclude that IT outsourcing provide the client organizations with several benefits. Some studies also discuss, in general terms, various risk...

Global partnerships are forming to take advantage of the cost savings associated with offshoring as well as other strategic benefits. Not all information technology offshoring projects, however, are successful. Cost overruns, increased complexity and defective code cause organizations to rethink their offshoring strategy and their methods for managing these projects. In this paper, project mana...

This document takes stock from several studies on outsourcing risk. A definition of risk is offered and illustration from many case studies is used to show how risk can be managed. Results show that an active risk management approach can reduce risk exposure subtantially while enabling the organizations to still reap the benefits associated with outsourcing.

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 ...

This research tests an explanatory model of IT outsourcing behaviour. It relies on transactions cost theory. A survey was conducted to test the hypotheses. As anticipated, the results suggest that uncertainty and the origin of the investments required to conduct a transaction have a significant influence on the outsourcing decision. However, asset specificity shows an inconsistent effect on out...