We investigate the impact of Information Technology (IT) outsourcing on firm performance from several dimensions, including changes in labor productivity, improvements in financial and operational performance variables, and stock market valuation of IT outsourcing initiatives as measured by Tobin’s q. While our main objective is to better understand the economics of IT outsourcing, we also aim ...

To gain competitive advantage, organisations are considering information technology (IT) outsourcing as a strategic option by concentrating on their core operations and by reducing their operating costs. Many organisations are offering outsourcing services from various parts of the world. There are certain risks factors which IT outsourcing service providers come across while managing their ser...

The vendor firm’s body of knowledge (BoK) has been considered to be vital in IT outsourcing success since outsourcing is considered as flow of knowledge especially from vendor firms to client firms. However, previous researches mostly focused on the client firms’ perspective and less attention on vendor firms and their knowledge bases. In this paper, we investigated the impact of vendor IT firm...

To be successful in Information Systems (IS) outsourcing the necessity of better management practices has been pointed out. This research contributes to the knowledge base on management of IS outsourcing by addressing management of IS outsourcing relationships. The research describes two cases of IS outsourcing relationships that differ in type of activity outsourced, IS development versus IS m...

Previous IS outsourcing research studies failed to provide evidences on how IT client-vendor relationships should be governed to ensure project success and relational continuity. More importantly, it is even challenging for companies to achieve outsourcing success in transition economies facing an environment characterized by institutional instability. This article draws from theories of instit...

In literature, Information Technology outsourcing is often investigated as a generic phenomenon. In practice, outsourcing transactions and services are varying. Hence IT services can be outsourced selectively or as a whole. We investigate the outsourcing of firm-wide IT infrastructure, and evaluate empirically if the successes of selective and total outsourcing differ, as a whole and in technol...

Williamson’s (1979) transaction cost theory (TCT) has been widely used in information technology (IT) outsourcing research. This research, however, has led to mixed and unexpected results. From a theoretical standpoint, this paper argues that the conceptualization of the constructs and, more importantly, the linkage among constructs that IT outsourcing decision models have hypothesized are not ...

IT executives entering into information technology (IT) outsourcing arrangements seek various strategic, economic, and technological benefits. However, although several cases of IT outsourcing are considered successful, cases of failure can also be observed. Problems and challenges associated with IT outsourcing often not only relate to the strategic decision whether or not to outsource, but to...