Future State of Outsourcing Supply Chain Information Systems: An Analysis of Survey Results

Future State of Outsourcing Supply Chain Information Systems: An Analysis of Survey Results

Seong-Jong Joo (Colorado State University, Pueblo, USA), Ik-Whan G. Kwon (Saint Louis University, USA) and Chang Won Lee (Hanyang University, South Korea)
DOI: 10.4018/978-1-4666-1761-2.ch008
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Abstract

The purpose of this study is to acquire knowledge that will help clarify outsourcing trends in general and an information systems utilization perspective in particular. The authors review recent studies on outsourcing and conduct a nationwide survey. The results of the survey reveal that 60 percent of the respondents are focusing on their supply chain for cost reduction and/or competitive advantages and less than half of the respondents plan to outsource supply chain processes and information systems within the next 5 years. Results also show that major reasons for outsourcing include a lack of ability to handle in house and return on assets, while the largest barrier to outsourcing is cost followed by control concern.
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Literature Review

This section includes outsourcing trends identified by a literature review. Although the literature review is not exhaustive, it will show the recent trends by industries and products. In addition, the study covers activities outsourced, outsourcing trends (past, current, and future), and key drivers for retaining or outsourcing internal systems, technological capabilities for outsourcing, and enablers and barriers to outsourcing.

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