Changes in IT sourcing arrangements

Abstract

Purpose Companies are increasingly changing their IT sourcing arrangements. Such changes often involve significant costs. The purpose of this paper is to explore and explain IT sourcing as a dynamic organizational phenomenon and to gain a deeper understanding of the drivers and outcomes of IT sourcing changes at organizational level. Design/methodology/approach A qualitative approach with interpretive analysis of historical data. Data are collected from companies through interviews and review of public documents where available. Findings The underlying tendencies of change are either primarily associated with institutional processes, or with what we term “IT‐driven” considerations. The perceived success of IT outsourcing in companies is dependent on these underlying tendencies. Research limitations/implications This is an exploratory study and the findings on the underlying tendencies in change will be helpful in further theory development and research on IT outsourcing changes. Practical implications Knowledge coming from such research could help companies make more effective decisions about IT sourcing changes and set realistic expectations. Originality/value The dynamic perspective taken in this paper is different from the perspectives taken in earlier research where the researchers took cross‐sectional views of IT outsourcing arrangements. This paper shows the importance of re‐examining the reasons for change using the more encompassing concept of orientation.

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