Optimal Asset Transfer in IT Outsourcing Contracts

MIS Quarterly ◽  
2020 ◽  
Vol 44 (2) ◽  
pp. 857-905
Author(s):  
Shivendu Shivendu ◽  
David Zeng ◽  
Vijay Gurbaxani
Author(s):  
Felix R. Doldán Tie ◽  
Paula Luna Huertas ◽  
Francisco Jose Martínez Lopez ◽  
Carlos Piñeiro Sanchez

The practice of information systems/information technology (IS/IT) outsourcing is a major issue which has received much attention, as shown by the extensive literature on the topic. However, most works on outsourcing have focused on theoretical topics, and there are but a few empirical, quantitative studies. This chapter presents an empirical study of IS/IT outsourcing in Spain, which has been conducted along the lines of prior research carried out in different countries, and which focuses on the types, functions and targets of outsourcing contracts. We also attempt to examine the influence that this practice may have on the organizations’ management structure. A survey carried out on 530 Spanish firms has shown that 50% of Spanish large firms have outsourced part of their IS/IT, whereas outsourcing is practiced by 20% of medium-sized enterprises. Finally, it has been observed that the most frequently outsourced activities in Spain are hosting and Internet-related services.


2019 ◽  
Vol 9 (2) ◽  
pp. 64-71
Author(s):  
Ron Babin ◽  
Brian Nicholson ◽  
Megan Young

This teaching case introduces the concept of Impact Sourcing, in the context of global IT outsourcing. While IT outsourcing is a well-established management technique, with a history of at least 30 years, Impact Sourcing is a relatively new concept, conceptualized by the Rockefeller Foundation in 2011 and recently defined by the Global Impact Sourcing Coalition. To summarize this case, a First Nations band collaborated with a successful global outsourcing firm, Accenture, to establish Indigena, a Canadian-based impact-sourcing enterprise. Indigena found it difficult to attract, hire and retain qualified Aboriginal employees. The suburban office location in the high-cost Vancouver market may have been a key challenge in building a robust Aboriginal workforce. However, the challenge of winning outsourcing contracts in a competitive market may have been hindered by the Aboriginal workforce, despite the outward positive response of clients to the Impact Sourcing model. Indigena was not able to meet its social goals and at the same time it struggled to attract and retain clients. It was unable to demonstrate profitable business success, resulting in a strategic challenge from its investors.


2010 ◽  
pp. 1333-1359
Author(s):  
Felix Doldan Tie ◽  
Paula Luna Huertas ◽  
Francisco Jose Martinez Lopez ◽  
Carlos Pineiro Sanchez

The practice of information systems/information technology (IS/IT) outsourcing is a major issue which has received much attention, as shown by the extensive literature on the topic. However, most works on outsourcing have focused on theoretical topics, and there are but a few empirical, quantitative studies. This chapter presents an empirical study of IS/IT outsourcing in Spain, which has been conducted along the lines of prior research carried out in different countries, and which focuses on the types, functions and targets of outsourcing contracts. We also attempt to examine the influence that this practice may have on the organizations’ management structure. A survey carried out on 530 Spanish firms has shown that 50% of Spanish large firms have outsourced part of their IS/IT, whereas outsourcing is practiced by 20% of medium-sized enterprises. Finally, it has been observed that the most frequently outsourced activities in Spain are hosting and Internet-related services.


2010 ◽  
pp. 1324-1332
Author(s):  
Chad Lin ◽  
Koong Lin

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.


Author(s):  
Chad Lin ◽  
Yu-An Huang ◽  
Chien-Fa Li ◽  
Geoffrey Jalleh ◽  
Ying-Chieh Liu

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.


2015 ◽  
pp. 1258-1278
Author(s):  
Chad Lin ◽  
Yu-An Huang ◽  
Chien-Fa Li ◽  
Geoffrey Jalleh ◽  
Ying-Chieh Liu

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.


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