Information Systems Outsourcing Research Articles

Antecedents of Effectiveness of Outsourced Information Systems

This research aimed to analyze the efficiency of management practices that govern IT projects, represented by the decision to adopt project management methodologies and by the internal controls over suppliers and users, reflected in the perceived effectiveness of outsourced information systems. We have employed a quantitative methodology, using structural equation modeling with partial least squares and the sample consisted of 299 information technology professionals. The results show the positive effect of management practices that monitor supplier capacity on the effectiveness of information systems, as well as the processes associated with the control of project deviations.

An integrative model of information processing and contextual factors on exploring information systems outsourcing success

Information Systems (IS) outsourcing contracts often fail to deliver the planned business benefits. One major reason is that organizations have poor understanding of outsourcing. This study examined IS outsourcing success by integrating Information Processing Theory with four contextual factors (three organizational readiness factors: IT skills readiness, financial readiness and technology readiness, and one moderator factor: environmental dynamism). We collected 216 questionnaires to validate the proposed hypotheses. The statistical analysis revealed three findings. First, the fit between task uncertainty and organizational structural mechanism was significantly related to IS outsourcing success. Second, the negative moderating power of environmental dynamism on the relationship of IS outsourcing success with the fit between task uncertainty and organizational structural mechanism was significant. Finally, the three organizational readiness factors were significantly related to IS outsourcing success. This study provided new insights on the future development of Information Processing Theory and the improvement of IS outsourcing project performance.

Formal and relational governance of artificial intelligence outsourcing

Outsourcing emerging technologies such as Artificial Intelligence (AI) are expected to impact organisations significantly, due to a tight labour market for AI expertise. However, how formal and relational governance effects Information Systems suppliers who provide AI services has not been studied. Based on an exploratory research amongst eight suppliers and two market research advisors, we conducted 18 expert interviews and found evidence how formal contractual and relational governance affects AI outsourcing. The results indicate various forms of contractual models in which some cater for clients’ needs specifically, e.g. outcome-based, experience-driven Service Level Agreements (SLAs). Our examination provides insights that formal and relational Information Systems (IS) outsourcing governance are complementary in cases where clients and suppliers co-develop AI. For our research, we adapted the outsourcing governance model of Lioliou et al. (Inf Syst J 24:503–535, 2014), including their emphasis on the psychological contract. We contribute to IS outsourcing literature by exploring, beyond contract management insights, differences between suppliers in providing AI services. Our study acknowledges that AI outsourcing shift the emphasis from a transactional type of arrangement to a relational type of outsourcing arrangement. In addition, the combination of both formal and relational governance mechanisms positively contributes to IS governance. Our study also confirms that the innovative character of AI positively contributes to the psychological contract in outsourcing AI.

From information systems resources to effective use: Moderating effect of network embeddedness

This research examines how organizations can achieve effective information systems (IS) use by aligning internal IS resources with embeddedness in the IS outsourcing network. Leveraging the empirical opportunity of large-scale organization-wide meaningful use attestation of electronic health records, we conducted a longitudinal analysis of US hospitals from 2013 to 2017. We found that an organization’s network embeddedness amplifies the positive relationship between IS resources and effective IS use. We also identify different impacts depending on network embeddedness types and organization sizes. We found positive moderating effects of structural and positional embeddedness. However, junctional embeddedness has no direct or moderating effect on IS use. In addition, the moderating effects manifest differently for different-sized organizations – i.e., structural embeddedness has a stronger positive moderating effect for large organizations, while positional embeddedness’ positive moderating effect is stronger for small organizations. We also found heterogeneous direct effects of structural and positional embeddedness on organizational IS use. Solely depending on structural embeddedness will result in lower IS use, which is more prominent for small organizations. Positional embeddedness has a negative direct effect on small organizations’ IS use but positively relates to large organizations’ IS use. This research highlights the role of network embeddedness in facilitating IS use and offers a nuanced understanding of its impacts. Our findings also provide practical implications for organizational IS use through strategic IS outsourcing.

Functionality Performance of Information Systems in Higher Education Institutions

The goal of this research was to evaluate the performance of information systems in terms of functionality of the in-house developed and outsourced information systems of Higher Education Institutions (HEIs) in Samar, Philippines. A descriptive research design was used in order to obtain information on the performance of the information systems in terms of functionality. The technique employed for data collection was physical evaluation using an observation sheet. A total of thirteen (13) information systems were subjected to performance evaluation as there were thirteen HEIs from the different provinces of Samar Island that participated in the study. The overall results showed that the outsourced systems had better performance in terms of functionality since most of the indicators were completely existing and functional. On the other hand, the in-house systems have performed fairly with regards to the required features and functionalities of the system. The results of the study suggest that HEIs should acquire information systems that are completely functional, regardless of what acquisition method is adopted. Having information systems equipped with the required functionality features, the administrative and academic functions of HEIs are effectively and efficiently delivered.

The Evolving Nature of Information Systems Controls in Healthcare Organisations

Information Systems (IS) projects are found to be complex, unpredictable, and prone to time and cost overruns. Perhaps that is why organisations put a strong focus on IS controls during the planning and execution of such projects.IS control literature in the past has focussed on dyadic control relationships during an outsourced IS development project and relatively little is known about such controls during a complex enterprise systems project. Existing studies usually take a static view of IS controls and do not investigate how controls evolve during different phases of the system lifecycle, as well as across projects. This study presents a processual view of IS controls in the enterprise systems lifecycle in a national blood processing organisation. Traditional research in a blood banking context has focussed on optimising the process of blood collection, inventory management, and distribution with relatively limited attention to the implementation of the supporting information systems. This research focusses on the evolution of control based on a study of three enterprise system implementation projects in the case organisation. The study demonstrates that while all five control modes (input, outcome, behaviour, clan, and self-control) are applied across the phases of enterprise systems projects, the nature and extent of control mechanisms changes across the phases of the enterprise system lifecycle. The findings also suggest a teleological evolution of a project’s control portfolio in which the portfolio evolves based on adaptive learning processes from earlier projects. Finally, by exhibiting the influence of institutional and market context, this study also underlines the multi-stakeholder and contextual nature of enterprise systems implementation and associated controls in health service organisations.

Knowledge Management System as a Business Process Outsourcing Approach

Information Systems outsourcing or subcontracting is a choice inspired by an organization to employ if not most, all of its Information Systems functions and procedures to a particular, or multiple external Information Systems businesspeople, who in return perform and manage the responsibilities for a price agreed by both over a specific time. In the world of literacy, many ways define the knowledge explicitly. In this new knowledge-based community, knowledge has been more recognized as the most significant source in an organization. With the help of tacit and implicit knowledge, the explanation of the value of knowledge transfer over inter-organizational relations or people within deemed to be precise. A firm in Indonesia has suffered from a dilemma concerning the transfer of knowledge. People savour externally provided knowledge or expertise and endeavour to study it for business success. This research supports the importance of holding an organizational community that nurtures innovation, education, and cross-border knowledge transfer. Furthermore, it is recommended that studies following this should review the safety and security of knowledge transfer and applications used for delivery.

Identify the factors affecting the outsourcing of information systems with a multi-criteria decision-making approach and present its implementation strategies

The purpose of this article is to identify and prioritize the factors affecting the of outsourcing of information systems and provide strategies for its implementation in order to increase the quality, accuracy and productivity of outsourcing in Nezaja Physical Education Organization. In this research, first factors Examining the outsourcing of information systems for sports managers of the Nezaja Physical Education Organization will be examined to identify and rank the role of outsourcing in the promotion of the Physical Education Organization. In the following, the factors in the field of outsourcing, including quality, management, strategy, economy, technology, accuracy in outsourcing decisions will be considered as a criterion for measuring the effectiveness of decisions for outsourcing information systems. Offer. For this purpose, the research approach is done using multi-criteria decision making methods with network analysis process and fuzzy wikor. Due to ambiguities in the opinions of various experts, this decision-making model produces fuzzy numerical values ​​to compare criteria, sub-criteria and options so that managers can better plan outsourcing strategies for each of the desired information systems. Make a decision. In the areas of sports management, managers' information systems, information technology, etc., the main and important factors were identified, categorized and analyzed, which are: importance, supply characteristics, risk, quality, financial , Delivery and technology, which was considered the strategic importance factor as the most effective factor in outsourcing and quality factor as the most effective factor in outsourcing sports management information systems of Nezaja Physical Education Organization.

IS outsourcing satisfaction and the IS managers’ job

PurposeThis paper aims to examine information system (IS) outsourcing success through the satisfaction achieved therewith. It simultaneously analyzes how IS outsourcing may influence the IS managers’ job.Design/methodology/approachThe results obtained in a survey on this topic carried out over a 12-year period are described. The proposal consists in a model that relates the degree of outsourcing with the satisfaction achieved therewith, in which the influence exerted by IS on the systems manager’s job acts as a mediating variable.FindingsThe study concludes that the way in which outsourcing affects the IS managers positively influences the satisfaction achieved with this service.Research limitations/implicationsOutsourcing poses a great challenge for IS managers because they must devote more time to their managerial functions, and they need more knowledge too. These greater requirements or demands will most probably make these executives feel unsatisfied with outsourcing. However, the paper shows that satisfaction increases insofar as, despite all these demands, the working post characteristics improve, and the satisfaction and autonomy of IS managers grows and most importantly, they believe that their job has a higher added value.Originality/valueNo studies had, hitherto, related outsourcing success and the implications of outsourcing for IS managers.

Project Control, Coordination, and Performance in Complex Information Systems Outsourcing

ABSTRACT Information systems outsourcing has not only become prevalent but also involves an increasingly wide range of activities beyond the traditional programming, testing, documentation, and localization activities to include complex business-focused project planning, process design, requirements determination, and logical and physical systems designs. Such complex IS outsourcing often requires interactions among various stakeholders across different locations and cultures and therefore is much more difficult to manage than the traditional IS outsourcing. Coordination and control have been viewed as especially important project management strategies for managing project activities; however, little research has focused on how they relate to each other and how they collectively affect the performance of complex IS outsourcing projects. In this study, we examine the differential performance effects of outcome and behavior controls on coordination and show that the effect of outcome control on project performance is mediated by coordination.

A Teaching Case on Information Systems Development Outsourcing: Lessons from a Failure

Students and academics rarely receive an opportunity to investigate and learn from failed projects even though many organizations restrict access to information about failed projects in order to minimize reputational damage (Chua & Lam, 2005). However, failure cases can provide unique insights that one often ignores or cannot explore in successful projects (Lyytinen & Robey, 1999). To facilitate this learning, we present a teaching case based on an outsourced information systems development project that commenced in 2010 and was terminated in 2013. We observe the project’s failure from the viewpoint of the vendor to illustrate how misspecified requirements and insufficient understanding of the client organization’s specific requirements can lead to project failures. We derived the case description and analyses by conducting seven interviews with project team members and by analyzing 14 business requirement specification documents.

Strategic Decision Making for Outsourcing Information Systems with a Fuzzy Multi-criteria Decision-Making Approach

Today, IS supplier selection is one of the most critical steps in the outsourcing process; the success of outsourcing is highly dependent on the selection of IS suppliers. This paper proposes a new hybrid fuzzy multi-criteria decision-making (MCDM) model, which uses decision-making trial and evaluation laboratory (DEMATEL) technique, analytic network process (ANP), and Vlse Kriterijumska Optimizacija I Kompromisno Resenje(VIKOR) to evaluate four potential suppliers using seven factors and five decision makers using a realistic case study. the results showed that Service support is importance for outsourcing. The proposed model can help practitioners improve their decision making process.

The impact of the role and communication of staff on successful outsourcing of information systems projects

This study investigates the impact of the role (project scope, authority and responsibility fulfilment) and communication (formal and informal discussion and rational discourse) of staff on the successful outsourcing of information systems (IS) projects. A total of 500 questionnaires were distributed by post to the managers of IS outsourcing firms registered with the Multimedia Super Corridor Malaysia and 168 questionnaires were returned. Multiple regression was used to analyse the hypotheses. The results highlight that project scope, responsibility fulfilment, formal and informal discussions and rational discourse have a significantly positive relationship with the success of outsourcing IS projects. Implicit in this finding is that there is a need to closely monitor individual and information technology (IT) elements of IS projects to ensure its successful outsourcing.

The Relationship between Self-confidence, Self-remembrance and Sincerity among Staff towards Information Systems Outsourcing Success

The study examined the relationship between the humanistic elements of self-confidence, self remembrance and sincerity among staff towards the success of information systems (IS) outsourcing.A total of 500 questionnaires were distributed by mail to the manager of information systems outsourcing companies registered with Malaysia's Multimedia Super Corridor and 168 were returned. The hypotheses of this study were analyzed using multiple regression methods.The findings show that the element of self confidence and sincerity of the staff have a positive and significant relationship towards the success of information systems outsourcing. The theoretical and practical implications and suggestions for future research are discussed.

Framework for Managing Shared Knowledge in an Information Systems Outsourcing Context

Both information systems (IS) outsourcing and knowledge management are well-established business phenomena. The integration of shared knowledge in an IS outsourcing arrangement, represents the blending of organisational knowledge with external knowledge sources. In an attempt to provide tactical mechanisms for creating and managing shared knowledge in organisations embarking on IS outsourcing arrangements, this article focuses on the design and application of a knowledge framework for IS outsourcing, with the purpose of guiding organisations in their knowledge exchange planning through concrete mechanisms, practical steps and validation. Key considerations for IS outsourcing is mapped to critical success factors, each associated with a set of knowledge requirements and knowledge flows to support the successful achievement of a specific critical success factor. An associated assessment tool was designed to identify knowledge exchange mechanisms and potential issues and gaps in current or future IS outsource arrangements.

From technical to non-technical skills among information systems suppliers

PurposeExisting research infers that in the information systems (IS) and information technology (IT) fields, a shift may occur between technical and non-technical skills. However, relatively little research has focused on going changes in terms of key skills in the IS suppliers sector. The purpose of this paper is to address this gap by investigating these skills evolution in the IS suppliers domain and discusses their impacts on IS and IT curricula.Design/methodology/approachThis paper uses a qualitative method based on 15 semi-structured face-to-face interviews, with highly dedicated operational managers in senior positions in the field.FindingsThis study identifies, for the IS suppliers, the critical skills, which are basically non-technical, and peripheral skills, which are primarily technical. It then considers the consequences of this change and the necessary adaptations it requires for businesses and training for this field.Practical implicationsThe findings suggest the need to redesign the educational curricula for future managers, and the adaptations required to the work organization, human resource management and business models of firms in the field.Originality/valueThe paper’s value is twofold. First, it focuses on IS service suppliers, an understudied area (most research examines IS outsourcing from the customer’s standpoint); second, it reveals the shift away from technical toward non-technical skills in a field that is intrinsically technical – a change that may occur more slowly than in other less technical sectors – and the consequences of this change for firms, education and society.

How it outsourcing impacts on value creation of manufacturer?

A growing concern among the manufacturers who are actively involved in Information Technology outsourcing is post-contract management and the ensuing development of what many practitioners have coined the ‘outsourcing partnership’. Over the past few decades, information technology outsourcing has become a widely used and researched means for manufacturers to enhance their performance. Increasing attention has been paid to building successful partnerships in information systems outsourcing. This study employs strategic social positioning, customer participation, customer orientation, and communication culture to develop research model. The quantitative method will be used to validate the research model and test hypotheses developed. This study uses survey method to collect data, and analysis of the reliability, validity and test the proposed hypotheses by Smart Partial Least Squares. The purpose of this study is to use above four factors to produce value co-creation between outsourcing vendors and manufacturers. The final aim is for the future collaboration. This combination will allow manufacturers and information technology outsourcing vendors to increase their value co-creations in the fields of these factors.

Information Systems Outsourcing Reasons and Risks: Review and Evolution

ABSTRACTThe present article proposes a set of outsourcing reasons and risks—subsequently assessing them in the case of major Spanish companies through a survey that has been replicated twice. A questionnaire was administered to the Information Systems managers of the largest Spanish firms in order to achieve these aims. An analysis will be carried out to check if the proposed reasons and risks are valid for firms regardless of their size or their degree of outsourcing, later complemented with a study of the effect that time has on them, showing a 12-year evolution.

A process explanation of the effects of institutional distance between parties in outsourced information systems development projects

Outsourced information systems development (OISD) projects are challenging endeavors, and the literature suggests differences between the parties involved as critical hinderers of such projects. Using institutional theory as a foundational theory, we propose a process explanation of the effects of differences between parties in OISD projects. Our explanation relies on the interaction of four components: (1) the IS development and project management institutional profiles of the parties involved; (2) the institutional distance between practices within these profiles; (3) instances of conflicting institutional demands when institutional distance becomes salient; and (4) the repertoire of institutional strategic responses available to parties to address those instances. We suggest that the constitutive elements of institutional distance and the degree to which parties envision their collaboration beyond the project at hand contribute to explaining the enactment of strategic responses. Accounting for the fact that practices, as well as the institutional logics that drive their enactment, may differ between parties, we make a theoretical contribution to the literature on OISD by building a fine-grained explanation of the effects of differences between parties in OISD projects.

The Sourcing of Software Services

Transaction cost economics (TCE) is the most prominent theory for studying questions surrounding information systems (IS) outsourcing. Its most widely tested argument is that client-specific services are rather kept in-house due to the high transaction costs which arise for safeguarding against opportunistic behavior. However, empirical support for this argument has so far been inconclusive. We seek to resolve this inconsistency by following two recommendations in prior literature. First, we extend TCE by considering trust differences between internal employees and vendor staff as a context factor. Second, we explicitly account for TCE's economic rationale by acknowledging that client-specific knowledge influences both transaction cost and production cost differences between in-house and outsourced IS services. Using data from 139 organizations on the sourcing of software development and maintenance services, we found support for our theoretical extension. For IS services requiring client-specific knowledge, in-house transaction cost advantages were particularly high if more trust was put in in-house personnel compared to vendor staff. Production costs were generally lower in-house when knowledge specificity was high. Both in-house transaction and production cost advantages were associated with lower degrees of outsourcing. The results explicate an important boundary condition of TCE and help shed light on the so far inconclusive empirical results regarding the role of asset specificity in explaining IS outsourcing decisions. The insights help decision makers by providing a better understanding of the economics of IS sourcing and the important role of trust.