A Risk Based View of Influential Factors in IT Outsourcing Relationship for Large Multinational Companies

Author(s):  
Georg Hodosi ◽  
Lazar Rusu ◽  
Seungho Choo

Information Technology Outsourcing (ITO) is well spread among large Multinational Companies (MNCs) in Europe, and it is expected to increase even more. The authors’ focus is the service buyer company who needs a well working relation with its ITO supplier for handling emergent issues, daily operation and events that have not been foreseen. In the last years, an increasing attention has been paid to improve ITO relationship. Reviewing the research literature, they have not found any studies about Influential Factors (IFs) that could improve the ITO relationship, nor, how risk factors are interrelated to ITO relationship. Therefore, the authors address this issue by providing 15 IFs that could improve the ITO relationship for large MNCs and their providers and could help the service buyers companies’ to concentrate on these IFs. Additionally, the authors developed a framework that could support the ITO decision makers in both mitigating the risks and improving the ITO relationship.

Author(s):  
Salim Lahmiri

Information technology outsourcing has become a major issue in business and received a large attention from both business managers and scholars. Indeed, it helps a business company to reduce it costs and to maintain its competitiveness. The purpose of this chapter is to introduce the utility of information technology outsourcing for the enterprise and to review some recent works in outsourcing risk factors identification and provider selection. Finally, drawbacks of information technology outsourcing will be presented along with future research directions.


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.


2017 ◽  
Vol 8 (3) ◽  
pp. 1-17 ◽  
Author(s):  
Andreea Daniela Pana Talpeanu ◽  
Lazar Rusu

Information Technology Outsourcing (ITO) has generated considerable interest within Information Systems (IS) research as a consequence of its benefits in terms of cost efficiency and freedom to focus on core capabilities. This study covers the area of ITO in the public sector, specifically, in Swedish Municipalities where ITO has become a mainstream strategy. The influential ITO factors of the post-contract stage of an ITO relationship are examined and debated in light of existent research literature. The research is based on a case study of a Swedish Municipality and a direct IT vendor. A thematic analysis brings light upon three new ITO influential factors which are: (1) mutual understanding and long-term engagement; (2) Multi-sourcing, and (3) Communication between Municipalities, together with other seven factors present in the research literature that have an influence on the ITO relationship. The findings of this study can support ITO decision-makers from Swedish municipalities in improving the ITO relationship between their organizations and IT vendors.


Author(s):  
Georg Hodosi ◽  
Sanaz Manavi ◽  
Lazar Rusu

In this paper the Risk Factors (RFs) in IT Outsourcing (ITO) theories from a service buyer perspective are explored. A comparative study about how Transaction Cost Theory (TCT), Core Competency Theory (CCT) and Agency Theory (AT) cover the RFs has been performed. A framework describing, how the theories cover the RFs has been developed and tested using a case study research methodology. The interviews with companies for testing the framework have been used to get an indication about which ITO theories the decision makers are using in their ITO. This study shows that TCT fully covers all RFs, AT covers almost all and CCT has the lowest coverage. The theories, which are used by the ITO decision makers, could only partially be answered. Risk handling could not be entirely mapped to the theories. Risk and risk mitigation were the main concerns for some of the interviewees, CCT for some others. This study recommends using both TCT and CCT for a successful ITO.


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.


Author(s):  
Scott Wymer ◽  
Elizabeth A. Regan

This study addresses factors commonly examined in the research concerning adoption and use of e-business and e-commerce information technology (EEIT) by small and medium enterprises (SMEs). The primary objectives are to determine: 1) what barriers and incentives SMEs perceive in adopting EEIT; 2) how the level of adoption of EEIT influences perceptions of incentives and barriers; and 3) whether results vary depending on demographic characteristics of size, geographic market scope, or industry sector. This paper also examines how homogenous SMEs’ perceptions are in their consideration of EEIT adoption factors. Data were collected from 290 U.S. SMEs. The findings revealed that among 25 factors identified in the research literature as incentives or barriers to adoption of EEIT by SMEs, only 16 factors were significant in the population studied, 12 as incentives and four as barriers. Factors were perceived differently as incentives or barriers by adopters, intended adopters, and non-adopters of EEIT. A number of differences were found among SMEs based on demographic characteristics, particularly size and industry-sector.


2011 ◽  
Vol 9 (1) ◽  
pp. 56-82 ◽  
Author(s):  
Scott Wymer ◽  
Elizabeth A. Regan

This study addresses factors commonly examined in the research concerning adoption and use of e-business and e-commerce information technology (EEIT) by small and medium enterprises (SMEs). The primary objectives are to determine: 1) what barriers and incentives SMEs perceive in adopting EEIT; 2) how the level of adoption of EEIT influences perceptions of incentives and barriers; and 3) whether results vary depending on demographic characteristics of size, geographic market scope, or industry sector. This paper also examines how homogenous SMEs’ perceptions are in their consideration of EEIT adoption factors. Data were collected from 290 U.S. SMEs. The findings revealed that among 25 factors identified in the research literature as incentives or barriers to adoption of EEIT by SMEs, only 16 factors were significant in the population studied, 12 as incentives and four as barriers. Factors were perceived differently as incentives or barriers by adopters, intended adopters, and non-adopters of EEIT. A number of differences were found among SMEs based on demographic characteristics, particularly size and industry-sector.


2014 ◽  
Vol 13 (06) ◽  
pp. 1283-1323 ◽  
Author(s):  
Homa Samadi ◽  
Salman Nazari-Shirkouhi ◽  
Abbas Keramati

Due to ever-increasing trend in outsourcing information technology projects in today's competitive world, the risk management in information technology outsourcing (ITO) projects is a challenging issue. Hence, this paper reviews and extracts present corresponding risks by literature review to implement risk management in ITO. After reviewing a number of frameworks in the literatures related to prioritizing of extracted risk factors, a new framework is presented to determine the priority of them. Because of network structure of the proposed framework and multi-dimensional nature of the project risk, the fuzzy analytic network process (fuzzy ANP) is applied to prioritize risk factors. Also, since identifying and prioritizing of risk factors cannot necessarily meet the organization's needs related to the project risk, the ways to respond to these factors are evaluated. For this purpose, responses to the five highest ranked risk factors are considered. Prioritization of responses to these risk factors is done by applying fuzzy technique for order preference by similarity to ideal solution (fuzzy TOPSIS) based on four criteria: quality, cost, time, and scope. Results, achieved from experts' judgment, show that the risk factor "Supplier's lack of expertise with an IT operation" is the most significant. Also, the best response for this factor, is "Review of monetary value and volume of suppliers' contracts prior to their selection" according to experts' point of view. In addition, a sensitivity analysis is carried out for validating the results.


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