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Index Terms
- A two-level investigation of information systems outsourcing
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Reviews
Fjodor J. Ruzic
The authors opened a two-level investigation of IT outsourcing based on the initial outsourcing decision and the continuing relationships between clients and outsourcing firms. They posed three research questions: What are the dimensions of outsourcing decisions__?__ What are the determinants that affect the dimensions of outsourcing decisions at the first level__?__ and What are the determinants at the second level__?__ In order to answer these questions, they explain the existence of two dimensions of outsourcing decisions and four types of outsourcing relationships. These research topics generate several hypotheses related to cost effectiveness, IT impacts on a firm, IT systems complexity, IT systems support, and outsourcing strategy. Based on their findings, the authors explain the impact of vital variables (assist specificity, IT knowledge, and decision analysis effort) on decisions about outsourcing implementation and support. The authors open new questions in the discussion section, since the results and findings did not totally solve the problem of outsourcing decisions in the broader manner. Outsourcing decisions are often rational and economically motivated, since IT management needs to reduce costs throughout the organization. However, organization theorists know that there are more critical factors contributing to outsourcing decisions, such as improvement in IS organization, consolidation of data centers, and overall IT knowledge acquisition. The authors focus on the contracting environment with the idea of explaining what is present at the stage of contracting between outsourcing firms and client firms, whether or not the client has an IT department. This paper could be of interest to readers in<__?__Pub Caret> IT economy and information resources management as well as to MIS and business students.
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