Information System Outsourcin Decision: Case Study on the Automotive Industry

Abstract

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.