Article1995

An Empirical Study of Information Technology Outsourcing: Benefits, Risks, and Performance Implications

102 citations0/0 files storedJournal of the Association for Information Systems

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

Abstract

In this paper, we develop a conceptual model of information technology outsourcing using a set of benefits and risks as determinants and performance as consequences. We then test our model using primary data from a questionnaire survey involving the chief information officers in 159 Fortune 500 corporations, combined with appropriate seeondarydata from corporate financial statements. Our results show that technical and business benefits as well ascontrolandopportunismrisksarecriticalexplanatoryfactorsforoutsourcing. Inaddition,wedemonstratethat outsourcing leads to superior performance but this is moderated by cost structure of the firm.

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References

1992Determinants of Information Technology Outsourcing: A Cross-Sectional Analysis 1993Shaping the Future: Business Design Through Information Technology.1992Contracting for Software Development

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