A framework for IT outsourcing decision process

Abstract

With the development of the complex and strategic of IT outsourcing, IT outsourcing decision becomes more complex and entails considerable implications for the strategy of the firm. In this work, we focus on IT outsourcing decision from a process conceptualization. According to the typical IT outsourcing process, the decision process of IT outsourcing can be classified four stages: pre-decision, selective decision, implementation decision, and outcome decision. Based on prior research, we combine two theories insights: transaction cost theory (TCT) and resource-based theory (RBT), to develop a framework for IT outsourcing decision process, especially discuss pre-decision stage and selective decision stage. The study concludes with a consideration of the managerial and research implications.