Articlegreen1992

Determinants of Information Technology Outsourcing: A Cross-Sectional Analysis

739 citations0/0 files storedJournal of Management Information Systems

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Outsourcing and Supply Chain Management Information Technology Governance and Strategy Information Systems Education and Curriculum Development

Abstract

:This paper develops and tests a model of the determinants of information technology (IT) outsourcing by integrating both business and IT perspectives. Specifically, we attempt to explain the degree of IT outsourcing using business and IT competences as represented by their cost structures and economic performances. In addition, we posit that outsourcing is dependent on business governance, particularly financial leverage. Based on factor analyses and multiple regressions using data from fIfty-five major U.S. corporations, we observed that the degree of IT outsourcing is positively related to both business and IT cost structures. We also established that the degree ofIT outsourcing is negatively related to IT performance. Finally, we conclude with implications and future research directions.

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References

1976Theory of the firm: Managerial behavior, agency costs and ownership structure 1988Corporate Finance and Corporate Governance 1982Supplier Switching Costs and Vertical Integration in the Automobile Industry 1984A Transaction Cost Approach to Make-or-Buy Decisions 1991The impact of information systems on organizations and markets 2014Transaction Cost Economics 1984The information system as a competitive weapon 1993Shaping the Future: Business Design Through Information Technology.

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1996The Contribution of Shared Knowledge to IS Group Performance1 1994Perceived Service Quality and User Satisfaction with the Information Services Function 2003From the Vendor’s Perspective: Exploring the Value Proposition in Information Technology Outsourcing1, 2 1998Production and Transaction Economies and IS Outsourcing: A Study of the U. S. Banking Industry1 2009A review of the IT outsourcing literature: Insights for practice 1994

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