This paper reports on research into information systems (IS) outsourcing decisions and their consequences. A descriptional framework was used to describe systematically different types of outsourcing. A theoretical foundation for the IS outsourcing decision was derived from established organizational theories. These findings were investigated by retrospective and longitudinal in-depth case study research into 23 IS outsourcing arrangements in six organizations. The case studies were performed in the Netherlands, and comprised systematic analysis of actual short and long term effects of IS outsourcing.
Get full access to this article
View all access options for this article.
References
1.
AngS. (1994). Towards Conceptual Clarity of Outsourcing, In Proceedings of the FIP TC8 Open Conference on Business Process Re-engineering, Gold Coast Queensland, Australia, 8–11 May, GlassonB.C., HawryszkiewyczI.T., UnderwoodB.A., and WeberR.A. (eds), (North-Holland, Amsterdam) 131–41.
2.
AngS., and BeathC.M. (1993). Hierarchical elements in software contracts. Journal of Organisational Computing, 3, 329–361.
3.
AubertB.A., RivardS., and PatryM. (1993). A Transaction Costs Approach to Outsourcing: Some Empirical Evidence. In Proceedings of the ASAC IS Division, GallupeB., and ToddP. (eds.), Lake Louise, 164–175.
4.
AubertB.A., RivardS., and PatryM. (1994). Development of measures to assess dimensions of IS operation transactions- In Proceedings of the Fifteenth International Conference on Information Systems, DeGrossJ.I., HuffS.L., and MunroM.C. (eds.), (Vancouver, Canada) 13–26.
5.
BenbasatI., GoldsteinD.K., and MeadM. (1987). The case research strategy in studies of Information Systems. MIS Quarterly, 11, 369–86.
6.
BrussaardB.K. (1988). Information resource management in the public sector. Information & Management, 15, 85–92.
7.
Buck-LewM. (1992). To outsource or not?International Journal of Information Management, 12, 3–20.
8.
DoumaS., and SchreuderH. (1992). Economic Approaches to Organisations. (Prentice Hall, Englewood Cliffs, New Jersey).
9.
DouglassD.P. (ed.) (1993). New wrinkles in IS outsourcing. I/S Analyzer, 31(9), 1–18.
10.
EisenhardtK.M. (1989). Agency theory: an assessment and review. Academy of Management Review, 14(1), 57–74.
11.
FeenyD., WillcocksL., RandsT., and FitzgeraldG. (1993). Strategies for IT Management – When Outsourcing Equals Rightsourcing. In Directors Guide to OutsourcingRockS. (ed.), (Institute of Directors/IBM, London).
12.
FitzgeraldG., and WillcocksL. (1994). Contracts and Partnerships in the Outsourcing of IT. In Proceedings of the Fifteenth International Conference on Information Systems, DeGrossJ.I., HuffS.L., and MunroM.C. (eds.), (Vancouver, Canada) 91–8.
13.
GurbaxaniV., and KemererC.F. (1989). An agent-theoretic perspective on the management of information systems. In Proceedings of the 22nd Hawaii International Conference on System Sciences, 141–50.
14.
GurbaxaniV., and WhangS. (1991). The impact of information systems on organisations and markets. Communications of the ACM, 34, 59–73.
15.
JensenM.C., and MecklingW.H. (1976). Theory of the firm: managerial behaviour, agency costs and ownership structure. Journal of Financial Economics, 3, 305–60.
16.
LacityM.C., and HirschheimR. (1993). Information Systems Outsourcing; Myths, Metaphors and Realities (Wiley, Chichester, England).
17.
LacityM.C., and HirschheimR. (1994). IS outsourcing evaluations: lessons from the field. In Proceedings of the IFIP TC8 Open Conference on business Process Re-engineering, GlassonB.C., HawryszkiewyczI.T., UnderwoodB.A., and WeberR.A. (eds.), Gold Coast Queensland, Australia, 8–11 May (North-Holland, Amsterdam) 363–73.
18.
LohL. (1994). An Organisational-Economic Blueprint for Information Technology Outsourcing: Concepts and Evidence. In Proceedings of the Fifteenth International Conference on Information Systems, DeGrossJ.I., HuffS.L., and MunroM.C. (eds.), (Vancouver, Canada) 73–90.
19.
LohL., and VenkatramanN. (1992). Determinants of Information Technology outsourcing: a cross-sectional analysis. Journal of Management Information Systems, 9, 7–24.
20.
de LooffL.A. (1994). Decision Support for Outsourcing the IS function, Proceedings of the Ernst and Young/ICIS Doctoral Consortium of the Fifteenth Annual International Conference on Information Systems (Vancouver, Canada).
21.
de LooffL.A. (1995). Information Systems Outsourcing; Case Study Results, Research Report, Delft University of Technology, Delft, The Netherlands.
22.
de LooffL.A., and BerghoutE.W. (1994). Research Strategies in IS (in Dutch). Research Report TWI 94–17, Delft University of Technology, Delft, The Netherlands.
23.
MantelaersP.A.H.M. (1995). Information Capacity Engineering (in Dutch). Dissertation, Delft University of Technology, Delft, The Netherlands.
24.
MintzbergH. (1979). The Structuring of Organisations (Prentice-Hall, Englewood Cliffs, New Jersey).
25.
NissenH.-E., KleinH.K., and HirschheimR. (eds.) (1991). Information Systems Research: Contemporary Approaches and Emergent Traditions. In Proceedings of the IFIP TCS/WG 8.2 Working Conference, (Copenhagen, Denmark).
26.
PfefferJ. (1981). Power in Organisations (Pitman, Marshfield, Massachusetts).
27.
PorterM.E. (1980). Competitive Strategy: Techniques for analyzing Industries and Competitors (The Free Press, New York).
28.
PorterM.E., and MillarV.E. (1985). How information gives you competitive advantage. Harvard Business Review63(4), 59–81.
29.
RandsT. (1992). The key role of applications software make-or-buy decisions. Journal of Strategic Information Systems, 1, 215–23.
30.
van der VlisP.K., (1993). Outsourcing the IS function (in Dutch), Master Thesis, Delft University of Technology.
31.
van der VlisP.K., de LooffL.A., and BerghoutE.W. (1993). Mutual trust is essential; research into outsourcing decisions (in Dutch). Computable, 26(44), 17–21.
32.
WillcocksL., and FitzgeraldG. (1993). Market as opportunity? Case studies in outsourcing information technology and services. Journal of Strategic Information Systems, 2, 223–42.
33.
WilliamsonO.E. (1975). Markets and Hierarchies (MacMillan, New York).
34.
WilliamsonO.E. (1985). The Economic Institutions of Capitalism (Free Press, New York).
35.
YinR.K. (1984). Case study research: design and methods (Sage, Newbury Park).
