Adoption of New Information Economics to Achieve Information System Success in IS Outsourcing Implementation

Abstract

This research in progress paper aims to study the level of business-IT disconnection between IS outsourcing client and vendor. System Development Life Cycle (SDLC) as a general model for Information System Development and Design is just a formal sequential development guideline for Information System development. However, due to SDLC's inherent deficiency, it does not ensure efficient coordination of interlinked business and software design activities between business management client and information system specialist vendor. In this study, a research model proposed to reveal the relationship between adoption of NIE and system success in IS outsourcing firms. The main objective of this study is to resolve business-IT disconnection between IS outsourcing client and vendor. The results will assist the IS development for IS outsourcing client and vendors.  Index Terms—system development life cycle (SDLC), new information economics (NIE), information system outsourcing (IS Outsourcing), IS outsourcing client and IS outsourcing vendor.