Abstract
This chapter contributes an interpretation of Domberger’s theory of The Contracting Organization for use in an IT outsourcing context, then presents a preliminary test of the validity of that theory using data from a survey of 235 senior IT managers. Our conclusion is that Domberger’s theory appears to be a useful lens for understanding IT outsourcing, and that a further study using purpose-collected data is therefore warranted. Phrased differently, his four types of benefit of contracting — namely Specialization, Market Discipline, Flexibility, and Cost Savings — appear to be a good way of summarizing senior IT managers’ explanations of why their organizations chose to outsource IT. We also conduct a preliminary test of the extent to which these four factors can explain a purchasing organization’s satisfaction with IT outsourcing.
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