Validating measures of information technology outsourcing risks factors
In this qualitative case study of two Finnish companies, differences between success factors of IS quasi-outsourcing and conventional outsourcing are identified and discussed.
The study has practical and theoretical implications.
Bouchaib Bahli and Suzanne Rivard Omega, 2005, vol.
33, issue 2, 175-187 Abstract: Outsourcing information technology (IT) operations has been recognized to have important potential benefits, including cost reduction, improved quality of service, and access to technological expertise.
Outsourcing information technology (IT) operations has been recognized to have important potential benefits, including cost reduction, improved quality of service, and access to technological expertise.
Researchers and practitioners also recognize that, in some circumstances, IT outsourcing entails risk, and that it sometimes leads to undesirable consequences that are the opposite of the expected benefits.
In this paper we investigate IT effects on project risk management which is vital in any industrial and business activities as a continuous and forecasting process.
Risk management involves identifying the potential risks, measuring, monitoring and controlling them in an organization to meet its strategies and objectives and causes to decrease the undesired effects in project life cycles.
Of these risks, outsourcee selection is one of the most important.
Conventional IS outsourcing does not always meet expectations, often because the company lacks control over the outsourced activity.
Quasi-outsourcing collaboration, where the company transfers its IS personnel to a subsidiary, allows the company to maintain more control over the relationship than in conventional outsourcing.
From these insights, preliminary measures of IT outsourcing risk factors were developed and data from a survey of 132 IT executives were analyzed with partial least squares to assess their reliability and validity.
The results confirm that these factors are useful indicators for assessing IT outsourcing risks.Description: Business Review U N I V E R S I A María Reyes1 González Ramírez Departamento de Organización de Empresas Universidad de Alicante [email protected] outsourcing de sistemas de información: un es...