Abstract
IT paradigm is shifting rapidly from technology-oriented to service-oriented and, therefore, the interest on the efficiency of the IT service industry is increasing. In this study, we measure and compare the efficiency of 32 KOSDAQ(Korea Securities Dealers Automated Quotation) IT service companies. We applied the data envelopment analysis(DEA) to measure the relative efficiency, which is a linear programming model for measuring the relative efficiency of decision making units(DMUs) with multiple inputs and outputs. Assets and capital were selected as input factor, and sales and operating profit as output factor. The technical efficiency was analyzed by CCR-O, and the pure technical efficiency and the scale efficiency by BBC-O. The rank value analysis was performed applying the super efficiency method to distinguish between the DMUs with the same efficiency level. On the basis of analysis results, the degree of improvement was suggested for inefficient companies by benchmarking efficient companies. We expect that the results of efficiency evaluation and the benchmarking method to improve efficiency obtained in this study will provide fruitful implications for decision making of IT service companies.
Published Version
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