The Effect of Corporate Strategy and IT Role on the Intent for IT Outsourcing Decision

2011 ◽  
pp. 417-425
Author(s):  
Dong-Hwan Cho ◽  
Jin-Sung Kim
Keyword(s):  
Corporate Strategy ◽  
It Outsourcing ◽  
Outsourcing Decision

A Case Study Using the Analytic Hierarchy Process for IT Outsourcing Decision Making

2015 ◽  
Vol 8 (1) ◽  
pp. 60-84 ◽  
Author(s):  
Mary Anne Atkinson ◽  
Ozden Bayazit ◽  
Birsen Karpak
Keyword(s):  
Decision Making ◽  
Analytic Hierarchy Process ◽  
It Outsourcing ◽  
Offshore Outsourcing ◽  
Analytic Hierarchy ◽  
Business Decision ◽  
The Analytic Hierarchy Process ◽  
Outsourcing Decision ◽  
Hierarchy Process

Decisions related to managing IT resources - which resources to keep in-house and which resources to outsource - are critical to business success. The goal of this paper is to show the usefulness of the Analytic Hierarchy Process (AHP) as a decision-making tool for IT sourcing decisions, based on an analysis of factors that recent literature found to be associated with IT sourcing risk. Although the AHP previously has been suggested for IT outsourcing decision making, this study is the first to consider evaluating the risks of offshore outsourcing, rural outsourcing, and in-sourcing IT processes by using the AHP. From the perspective of the expert decision maker, three IT sourcing strategies were evaluated with respect to 58 criteria. The case study example presented in this paper shows the effectiveness of the AHP to support management for this business decision. The authors' results show that a systematic approach to analyzing outsourcing can reduce the uncertainty and risk that is common in such decisions.

IT Outsourcing Practices in Australia and Taiwan

2010 ◽  
pp. 1324-1332
Author(s):  
Chad Lin ◽  
Koong Lin
Keyword(s):  
Success Factors ◽  
Relevant Literature ◽  
Third Party ◽  
It Outsourcing ◽  
Critical Success ◽  
Management Responsibility ◽  
Vendor Management ◽  
Benefits Realization ◽  
Outsourcing Contracts ◽  
Outsourcing Decision

Globally, information technology (IT) outsourcing has spread quickly in many countries and spending by organizations in IT outsourcing is increasing rapidly each year. According to Gartner (Blackmore, De Souza, Young, Goodness, and Silliman, 2005), total spending on IT outsourcing worldwide is likely to rise from US $184 billion in 2003 to US $256 billion in 2008. However, defining IT outsourcing is not an easy task as it can mean different things to different organizations. Hirschheim and Lacity (2000) define IT outsourcing as the “practice of transferring IT assets, leases, staff, and management responsibility for delivery of services from internal IT functions to third-party vendors.” Willcocks and Lester (1997) define outsourcing as the “commissioning of third-party management of IT assets or activities to deliver required results.” The scope and range of outsourcing services have also increased as well, as evidenced by the promotion of BPO (business process outsourcing), ASP (applications service providers), global outsourcing, R&D (research and development) outsourcing, and web and e-business outsourcing (Gonzales Gascon and Llopis, 2005; Huang, Lin, and Lin, 2005). While there is already much research on the economics of IT outsourcing, critical success factors for IT outsourcing decision-making and for outsourcing vendor management (Barthelemy and Geyer, 2004; Hirschheim and Lacity, 2000), there is very little literature on the actual linkage between IT outsourcing and the use of evaluation methodologies in organizations, especially in how these organizations evaluate their IT outsourcing contracts and ensure that the benefits expected from these contracts are delivered eventually. The aim of this paper is to examine issues surrounding the evaluation and benefits realization processes in Australian and Taiwanese organizations undertaking IT outsourcing. The paper first reviews relevant literature with respect to IT outsourcing, the evaluation of IT outsourcing, and IT benefits realization. Key findings from a survey of the top 2000 Australian organizations, as well as a survey to top 3000 Taiwanese organizations, will then be presented. The paper examines these findings and issues in light of these large organizations’ evaluation practices.

A Preliminary Study of Key Factors Affecting Management and Evaluation of IT Outsourcing Contracts in Hospitals

2013 ◽  
pp. 1109-1129
Author(s):  
Chad Lin ◽  
Yu-An Huang ◽  
Chien-Fa Li ◽  
Geoffrey Jalleh ◽  
Ying-Chieh Liu
Keyword(s):  
Decision Making ◽  
It Outsourcing ◽  
It Services ◽  
Key Factors ◽  
Factors Affecting ◽  
Negotiation Processes ◽  
Key Issues ◽  
Software Development Outsourcing ◽  
Outsourcing Contracts ◽  
Outsourcing Decision

Many hospitals are experiencing pressure to improve their operational efficiency and patient safety due to escalating costs and increased competition. In order to achieve these and other business objectives, hospitals have to outsource some of their Information Technology (IT) functions to external outsourcing contractors. The scope and range of IT-related outsourcing services are also increasing, as evidenced by the promotion of Applications Service Providers (ASP), Business-to-Business (B2B) integration, cloud-drive business and IT services, desktop and helpdesk, IT infrastructure services, and software development outsourcing. However, little attention has been paid by many hospitals to the key factors that affect their IT outsourcing decision-making and negotiation processes. This is important given that the IT outsourcing can play a key role in organizational success. Moreover, contract decision-making and negotiation processes in hospitals are particularly under-studied, especially in the management and evaluation of the IT outsourcing contracts. Hence, the main objectives of this chapter are to: (1) examine and identify some key factors affecting the management and evaluation of IT outsourcing contracts in Taiwanese hospitals; and (2) propose a set of recommendations to overcome or minimize the key issues identified in this study. One contribution of the study is the recommendations provided to deal with issues that are critical in the management and evaluation of IT outsourcing contracts in hospitals.

A Preliminary Study of Key Factors Affecting Management and Evaluation of IT Outsourcing Contracts in Hospitals

2015 ◽  
pp. 1258-1278
Author(s):  
Chad Lin ◽  
Yu-An Huang ◽  
Chien-Fa Li ◽  
Geoffrey Jalleh ◽  
Ying-Chieh Liu
Keyword(s):  
Decision Making ◽  
It Outsourcing ◽  
It Services ◽  
Key Factors ◽  
Factors Affecting ◽  
Negotiation Processes ◽  
Key Issues ◽  
Software Development Outsourcing ◽  
Outsourcing Contracts ◽  
Outsourcing Decision

Many hospitals are experiencing pressure to improve their operational efficiency and patient safety due to escalating costs and increased competition. In order to achieve these and other business objectives, hospitals have to outsource some of their Information Technology (IT) functions to external outsourcing contractors. The scope and range of IT-related outsourcing services are also increasing, as evidenced by the promotion of Applications Service Providers (ASP), Business-to-Business (B2B) integration, cloud-drive business and IT services, desktop and helpdesk, IT infrastructure services, and software development outsourcing. However, little attention has been paid by many hospitals to the key factors that affect their IT outsourcing decision-making and negotiation processes. This is important given that the IT outsourcing can play a key role in organizational success. Moreover, contract decision-making and negotiation processes in hospitals are particularly under-studied, especially in the management and evaluation of the IT outsourcing contracts. Hence, the main objectives of this chapter are to: (1) examine and identify some key factors affecting the management and evaluation of IT outsourcing contracts in Taiwanese hospitals; and (2) propose a set of recommendations to overcome or minimize the key issues identified in this study. One contribution of the study is the recommendations provided to deal with issues that are critical in the management and evaluation of IT outsourcing contracts in hospitals.

Making Decisions in IS/IT Outsourcing

2010 ◽  
pp. 306-325
Author(s):  
Cheng-Chieh Huang ◽  
Ching-Cha Hsieh
Keyword(s):  
Decision Making ◽  
Decision Makers ◽  
It Outsourcing ◽  
Decision Making Process ◽  
Case Study Methodology ◽  
Dynamic Perspective ◽  
Strategy Transformation ◽  
Study Methodology ◽  
Outsourcing Decision

Making decisions in an IS/IT outsourcing project is complex and the outcome is unpredictable. Prior research on IS/IT outsourcing decisions simply assumed the decision-making process is rational, comprehensive and independent that is not descriptively accurate, and thus, cannot be prescriptively useful in such a complex environment. In order to gain a deeper understanding of decision-making in IS/IT outsourcing processes, this chapter creates an outsourcing decision framework, derived from a dynamic perspective, to illustrate the decision-making process and how the decisions impact outsourcing results. An in-depth case study methodology is used to interpret an e-strategy transformation outsourced project. The analysis indicates interwoven decisions, knowledge as power, decision-makers’ cognition, and ideologies should be the focus of future studies on IS/IT outsourcing.

KPMG survey: the IT outsourcing decision

1997 ◽  
Vol 5 (4) ◽  
pp. 126-132 ◽  
Author(s):  
Margaret Hurley ◽  
Folker Schaumann
Keyword(s):  
It Outsourcing ◽  
Outsourcing Decision

IT Outsourcing Practices in Australia and Taiwan

2011 ◽  
pp. 2291-2297
Author(s):  
Chad Lin ◽  
Koong Lin
Keyword(s):  
Success Factors ◽  
Relevant Literature ◽  
Third Party ◽  
It Outsourcing ◽  
Critical Success ◽  
Management Responsibility ◽  
Vendor Management ◽  
Benefits Realization ◽  
Outsourcing Contracts ◽  
Outsourcing Decision

Globally, information technology (IT) outsourcing has spread quickly in many countries and spending by organizations in IT outsourcing is increasing rapidly each year. According to Gartner (Blackmore, De Souza, Young, Goodness, and Silliman, 2005), total spending on IT outsourcing worldwide is likely to rise from US $184 billion in 2003 to US $256 billion in 2008. However, defining IT outsourcing is not an easy task as it can mean different things to different organizations. Hirschheim and Lacity (2000) define IT outsourcing as the “practice of transferring IT assets, leases, staff, and management responsibility for delivery of services from internal IT functions to third-party vendors.” Willcocks and Lester (1997) define outsourcing as the “commissioning of third-party management of IT assets or activities to deliver required results.” The scope and range of outsourcing services have also increased as well, as evidenced by the promotion of BPO (business process outsourcing), ASP (applications service providers), global outsourcing, R&D (research and development) outsourcing, and web and e-business outsourcing (Gonzales Gascon and Llopis, 2005; Huang, Lin, and Lin, 2005). While there is already much research on the economics of IT outsourcing, critical success factors for IT outsourcing decision-making and for outsourcing vendor management (Barthelemy and Geyer, 2004; Hirschheim and Lacity, 2000), there is very little literature on the actual linkage between IT outsourcing and the use of evaluation methodologies in organizations, especially in how these organizations evaluate their IT outsourcing contracts and ensure that the benefits expected from these contracts are delivered eventually. The aim of this paper is to examine issues surrounding the evaluation and benefits realization processes in Australian and Taiwanese organizations undertaking IT outsourcing. The paper first reviews relevant literature with respect to IT outsourcing, the evaluation of IT outsourcing, and IT benefits realization. Key findings from a survey of the top 2000 Australian organizations, as well as a survey to top 3000 Taiwanese organizations, will then be presented. The paper examines these findings and issues in light of these large organizations’ evaluation practices.

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