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

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.

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.


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.


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

Traditionally, little attention has been paid by hospitals to the key issues in the health information systems (HIS) outsourcing decision-making process. This is important given that the HIS outsourcing can play a key role in assisting hospitals in achieving its business objectives. However, the decision-making process of HIS outsourcing in hospitals is under-studied, especially in the management of their HIS outsourcing contracts. Therefore, the main objectives of this book chapter are to: (1) examine key issues surrounding the management and implementation of HIS outsourcing in Taiwanese hospitals; and (2) identify issues that are crucial in managing and implementing HIS outsourcing in hospitals. Four key issues and problems were identified in the HIS outsourcing process: lack of implementation in IS investment evaluation process, problems in managing HIS outsourcing contracts, lack of user involvement and participation in HIS outsourcing process, and failure to retain critical HIS contract management skills and project management capabilities in-house. Solutions and recommendations are provided to deal with key issues that are critical in the management and implementation of HIS outsourcing in hospitals.


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.


2018 ◽  
Vol 17 (2) ◽  
pp. 79-89
Author(s):  
Nawal Farhat Aguilar ◽  
Zaza Nadja Lee Hansen

Purpose Research has shown that non-governmental organizations (NGOs) often fail to appreciate that in their market, donors represent clients. Moreover, the unstable income characteristics of NGOs emphasize the importance of conducting market analysis specific to such organizations. The purpose of this paper is to identify key factors that influence fundraising success for mental health NGOs and determine the most advantageous fundraising approach based on a mixed-methods study that encompass a literature review, two surveys and a case study. Design/methodology/approach Based on a structured literature review, the most important factors affecting NGO fundraising are unified into a decision-making framework. This framework is tested using a triangulation approach by combining quantitative and qualitative methods. The former based on a general survey and the latter based on a case study. Findings The results highlight 15 key factors determining the optimal approach for mental health NGOs when fundraising in Denmark. Practical implications The decision-making framework can be used to assess the most advantageous fundraising approach based on a variety of internal and external circumstances. Originality/value While private firms develop exhaustive market analyses, NGOs often lack analyses to cope with fluctuating environments and changing customer needs. This paper addresses this gap by identifying key factors that determine an optimal fundraising approach and proposes a novel decision-making framework for practitioners.


Author(s):  
Mohammad Amin Zare ◽  
Mohammad Taghi Taghavi Fard ◽  
Payam Hanafizadeh

This article proposes a model to make an assessment of efficiency in Information Technology (IT) outsourcing in research centers through data envelopment analysis (DEA). In this research input and output variables of DEA model for assessment of IT outsourcing efficiency distinguished. The decision-making units (DMUs) include 36 research centers in Iran. Expenses and capabilities of contractors represent the inputs and the satisfaction of users, risks, and quality constitute the outputs. In order to calculate the input and output values, a questionnaire has been conducted to DMUs. Afterwards, BCC model has facilitated the calculation of the efficiency of the DMUs and classifies efficient and inefficient units. In addition, Anderson Peterson's model is used for ranking efficient DMUs. This research has brought us to the conclusion that the variables of risk and quality account for the biggest shares in efficiency improvement of non-efficient DMUs.


Author(s):  
Cheng-Chieh Huang ◽  
Ching-Cha Hsieh

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.


Author(s):  
Francois Duhamel ◽  
Isis Gutiérrez-Martínez ◽  
Sergio Picazo-Vela ◽  
Luis Felipe Luna-Reyes

Possible remedies for the failure of IT outsourcing in the public sector include the improvement of knowledge-sharing processes over organizational boundaries between partners, who may learn more about the problems that occur while looking at possible solutions together. Ensuring the right flow of knowledge in the two directions is central to the success of IT outsourcing operations. However, these solutions do not fully acknowledge the different interrelationships between the main factors affecting knowledge transfer in outsourcing relationships in a dynamic way. In this chapter, the authors apply previous research on modeling knowledge-sharing across boundaries to IT outsourcing contracts during the transition phase where both partners initiate an IT outsourcing relationship. Simulation experiments suggest that four reinforcing processes play key roles in the progress of the outsourcing relationship: trust, outsourcers' and providers´ knowledge, commitment, and interfacing. The authors propose future research directions to conduct empirical test of the conceptual model in the context of the Mexican Public Administration.


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