Investigation of the impact of corporate IT outsourcing decision on corporate core competence from the perspective of corporate IT intensity

Author(s):  
Fan Wu
2014 ◽  
Vol 30 (5) ◽  
pp. 1559 ◽  
Author(s):  
Pushpa Agrawal ◽  
Steven C. Hall

This study focuses on the information technology (IT) outsourcing decision and asks whether reported financial statement data can measure short-term financial effects of the IT outsourcing decision and thus add to the literature on the benefits of outsourcing. In this study we used accounting metrics derived from archival financial data to assess the impact of IT outsourcing on firms performance measures. In the sample of 79 firms from 1986 to 2009, there were 45 firms in the manufacturing sector and 34 firms in the service sector. The comparative study between manufacturing and service sectors will help identify where the higher potential of outsourcing impact lies. Firms performance is measured over a two-year period, one year before and one year after outsourcing decisions were made. For performance measures, we used cost efficiency, productivity, profitability, growth, cash management, and market ratio metrics. Using accounting metrics we show that IT outsourcing has a favorable short-term impact on manufacturing firms cost efficiency, productivity, and cash management. At the same time outsourcing the IT function has little favorable impact on service firms short-term performance measures.


2014 ◽  
Vol 51 (3) ◽  
pp. 320-335 ◽  
Author(s):  
Narasimhaiah Gorla ◽  
Toni M. Somers

2013 ◽  
Vol 4 (2) ◽  
pp. 50-66 ◽  
Author(s):  
Parisa Aasi ◽  
Ivan Nunes ◽  
Lazar Rusu ◽  
Georg Hodosi

Globalization has affected the organizations in many aspects such as structure, architecture, internal/external strategies and sourcing management. Outsourcing is one of the recent business strategies used to provide IT needs via external agents. The relationship between the service buyer and provider companies is a constituent playing a significant role in IT outsourcing success or failure. This research has a focus on the influence of organizational culture of buyer companies on the specific factors of trust, cooperation, communication and commitment in their relationship with the IT service provider. Two explorative case studies are done in global companies using ITO which revealed the presence of organizational culture effect. Particularly, being innovative, having open discussion as an organizational culture and looking for extending contracts with providers as a strategy, appeared as the major difference between the two cases organizational culture; which influences the studied factors of ITO relationship in this research.


Author(s):  
Mary Anne Atkinson ◽  
Ozden Bayazit ◽  
Birsen Karpak

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.


2017 ◽  
Vol 13 (25) ◽  
pp. 113
Author(s):  
Mohammed Danjuma ◽  
Peter Teru

This paper titled the Impact of Employee Participation in Accounting Services Outsourcing (ASO) by Small and Medium Enterprises (SMEs) in Nigeria. The study seeks to identify what factors affect outsourcing decision and the relationship between employee participation and outsourcing decision by SMEs. Therefore the study is mainly guided by the theory of Transaction Cost Economics (TCE). The key arguments of this paper were developed in line with TCE Theory. Thematic analysis of 1,300 SMEs using 10 case study based on in-depth interviews with Chief Financial Officers (CFOs) representing 10 industrial sectors. The study area is North Central Geo-Political Zone of Nigeria comprising mainly profit based manufacturing SMEs excluding public not for profit and service oriented enterprises. The study found that ASO decision is affected by cost-driven, strategy-driven, environment-driven and function-driven factors which all are linked with employee attitude and behavior to work. Therefore the study concludes that employee participation has positive influence over sourcing decision by Nigeria’s SMEs. It also confirmed that communication, vendor expertise and trustworthiness are drivers of sourcing decision by these enterprises.


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