Making Decisions in IS/IT Outsourcing: A Dynamic Perspective

Making Decisions in IS/IT Outsourcing: A Dynamic Perspective

Cheng-Chieh Huang (National Taiwan University, Taiwan, R.O.C.) and Ching-Cha Hsieh (National Taiwan University, Taiwan, R.O.C.)
DOI: 10.4018/978-1-61692-016-6.ch018
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Abstract

Making decisions in an IS/IT outsourcing project is complex and the outcome is unpredictable. Prior research on IS/IT outsourcing decisions simply assumed the decision-making process is rational, comprehensive and independent that is not descriptively accurate, and thus, cannot be prescriptively useful in such a complex environment. In order to gain a deeper understanding of decision-making in IS/IT outsourcing processes, this chapter creates an outsourcing decision framework, derived from a dynamic perspective, to illustrate the decision-making process and how the decisions impact outsourcing results. An in-depth case study methodology is used to interpret an e-strategy transformation outsourced project. The analysis indicates interwoven decisions, knowledge as power, decision-makers’ cognition, and ideologies should be the focus of future studies on IS/IT outsourcing.
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Literarure Review

In this section, this chapter reviews three perspectives from the IS literature on outsourcing. It describes their differences on assumptions, their considerations to how decision makers make decisions and how decisions impact outsourcing results (See Table 1). Through this review, we indicate the theoretical gaps to explain current complex IS/IT outsourcing decisions phenomenon.

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