Information System Outsourcin Decision: Case Study on the Automotive Industry

Information System Outsourcin Decision: Case Study on the Automotive Industry

Rafael Lapiedra (University Jaume I, Spain), Joaquin Alegre (University Valencia, Spain), Richardo Chiva (University Jaume I, Spain) and Steve Smithson (London School of Economics and Political Science, UK)
Copyright: © 2007 |Pages: 14
DOI: 10.4018/978-1-59904-195-7.ch009
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Outsourcing decisions in information technology (IT) research has yielded contradictory findings and recommendations. However, companies are increasingly outsourcing all or some of their information systems (IS) activities. This chapter examines the potential problems a company may face under this strategy. For this purpose, we conducted an empirical study in a European car manufacturing company that has followed the outsourcing alternative. The case analyzed offers insights about the outsourcing decision process and the difficulties the company faced when trying to adapt the software developed to the new business requirements. The problems that came out pushed the company to move back to the internalisation of the IS functions. The case shows a greater involvement of users on in-house developed projects. Our findings indicate that outsourcing is a good alternative when the IS activity is a technical one which does not require specific knowledge of the company.

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Table of Contents
Marc J. Schniederjans, Ashlyn M. Schniederjans, Dara G. Schniederjans
Chapter 1
Ashlyn M. Schniederjans, Dara G. Schniederjans
Most business organizations have recognized the importance of outsourcing information systems and related business processes. As the industry of... Sample PDF
Conceptual Evolution of Business Organizations into Outsourcing-Insourcing Alliance Networks
Chapter 2
Donald A. Carpenter, Vijay K. Agrawal
This chapter presents an overview of the outsourcing phenomenon, focusing on the question of why, when, and what to outsource. It provides an... Sample PDF
Why, When, and What to Outsource
Chapter 3
Vijay K. Agrawal, Donald A. Carpenter
This chapter presents an overview of the pertinent aspects of planning for the outsourcing of information systems projects. The first major section... Sample PDF
Planning for Information Systems Outsourcing
Chapter 4
Jeanette Nasem Morgan
This chapter lays out a set of steps for organizations to traverse in considering and crafting an outsourcing strategy for the firm. Outsourcing in... Sample PDF
Strategic and Tactical Planning of Outsourcing in MIS
Chapter 5
Jeanette Nasem Morgan
This chapter presents the tactics and metrics an organization applies after having made a decision to use outsource providers. Tactics are used to... Sample PDF
Establishing Performance Metrics for Managing the Outsourced MIS Project
Chapter 6
Anthony Briggs, Eric Walden, James J. Hoffman
n this chapter a model is developed that describes four forces that move organizations toward centralized IT contract management. Specifically, the... Sample PDF
The Case for Centralized IT Contract Management: A Four Force Model
Chapter 7
Jeanette Nasem Morgan
This chapter commences with a discussion of corporate and government decision-making processes and the management sciences that support development... Sample PDF
Decision-Making Methods in MIS Outsourcing: Case Studies of Successes and Failures
Chapter 8
Kathryn M. Zuckweiler
This chapter presents a process map of information systems outsourcing decisions and factors which influence the outcome of the outsourcing project... Sample PDF
Lessons Learned from Successes and Failures in Information Systems Outsourcing
Chapter 9
Rafael Lapiedra, Joaquin Alegre, Richardo Chiva, Steve Smithson
Outsourcing decisions in information technology (IT) research has yielded contradictory findings and recommendations. However, companies are... Sample PDF
Information System Outsourcin Decision: Case Study on the Automotive Industry
Chapter 10
James J. Hoffman, Eric Walden, Mark L. Hoelscher
The current chapter explores the role that one factor, social capital, may have on the success of IT outsourcing. It extends current understanding... Sample PDF
Outsourcing Information Technology: The Role of Social Capital
Chapter 11
Masaaki Kotabe, Janet Y. Murray, Maneesh Chandra
The traditional “make-or-buy” decision has been widely studied in the context of the theory of the firm and vertical integration. One of the most... Sample PDF
Outsourcing of Services by Service Firms: An Empirical Investigation
Chapter 12
Julie E. Kendall, Kenneth E. Kendall
Many firms outsource creation of program code for management information systems, but not all experiences are successful. Although some researchers... Sample PDF
Outsourcing and Information Systems Development: How Complementary Corporate Cultures Minimize Risks of Outsourced Systems and Projects
Chapter 13
Leonardo Legorreta, Rajneesh Goyal
Outsourcing is one of the most talked about and widely debated topics. Over the past few years, firms have been outsourcing their IT operations at... Sample PDF
Managing Risks of IT Outsourcing
Chapter 14
Merrill Warkentin, April M. Adams
This chapter provides a framework for evaluating and mitigating the risks associated with IT outsourcing projects. Outsourcing projects have been... Sample PDF
A Framework for Evaluating Outsourcing Risk
Chapter 15
James J. Hoffman, Eric Walden, Francisco Delgadillo, Ronald Bremer
A critical concern for firms that decide to outsource their information technology (IT) functions (or other operational functions for that matter)... Sample PDF
A Goal Programming Model for Evaluating Outsourcing Partners on a Global Scale
Chapter 16
Qing Cao, Karyl B. Leggio
This chapter will stress MIS’ strides in R&D outsourcing, and it will also detail the risks and uncertainty associated with the process of... Sample PDF
Real Option Appraisal in R & D Outsourcing
Chapter 17
Qing Cao, David N. Ford, Karyl B. Leggio
This chapter is a companion chapter to Chapter XVI, Real Option Appraisal in R&D Outsourcing. We provide two real-world case studies of the... Sample PDF
The Application of Real Options to the R & D Outsourcing Decision
Chapter 18
N. K. Kwak, Chang Won Lee
An appropriate outsourcing and supply-chain planning strategy needs to be based on compromise and more objective decision-making procedures.... Sample PDF
An Application of Multi-Criteria Decision-Making Model for Strategic Outsourcing for Effective Supply-Chain Linkages
Chapter 19
Eric Walden, Param Vir Singh
This chapter seeks to evaluate the dominant IT outsourcing contracts model (pay-later) as compared to an alternative model (pay-now) in light of... Sample PDF
Is the Business Model Broken? A Model of the Difference Between Now and Pay-Later Contracts in IT Outsourcing
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