The role of risk and return in information technology outsourcing decisions

1995 ◽  
Vol 10 (4) ◽  
pp. 239-247 ◽  
Author(s):  
Jaak Jurison
Keyword(s):  
Information Technology ◽  
Risk And Return ◽  
Information Technology Outsourcing

The Role of Risk and Return in Information Technology Outsourcing Decisions

1995 ◽  
Vol 10 (4) ◽  
pp. 239-247 ◽  
Author(s):  
Jaak Jurison
Keyword(s):  
Information Technology ◽  
Transaction Cost ◽  
It Governance ◽  
It Outsourcing ◽  
Future Research ◽  
Transaction Cost Theory ◽  
Risk And Return ◽  
The Relationship ◽  
Principal Contribution

This paper views information technology (IT) outsourcing decisions as classical make-or-buy decisions. In essence, these decisions consist of finding an acceptable balance between benefits and risks. The principal contribution of this paper is the development of a model that describes the relationship between outsourcing benefits and risks. It draws on work from two streams of research: transaction cost theory and modern financial theory. The model can assist managers in determining whether outsourcing or in sourcing is a better choice for a particular IT function and in evaluating and comparing competing vendor proposals. The model can also serve as a framework for future research in IT governance issues.

What Will it Take for China to Become a Competitive Force in Offshore Outsourcing? An Analysis of the Role of Transaction Costs in Supplier Selection

2003 ◽  
Vol 18 (1) ◽  
pp. 53-67 ◽  
Author(s):  
Qu Zhonghua ◽  
Michael Brocklehurst
Keyword(s):  
Information Technology ◽  
Transaction Costs ◽  
Supplier Selection ◽  
Production Costs ◽  
Policy Implications ◽  
Offshore Outsourcing ◽  
Chinese Government ◽  
Information Technology Outsourcing

Using transaction costs theory this paper argues that transaction costs are almost as significant as production costs when it comes to offshore outsourcing and, moreover, that it is in the field of transaction costs where China has been unable to compete with India in the supply of information technology outsourcing. The paper outlines a framework for analysing transaction costs and uses the framework for pinpointing where China is unable to compete. The paper concludes with a review of the policy implications for the Chinese Government.

Information Technology Outsourcing: Asset Transfer and the Role of Contract

MIS Quarterly ◽  
2017 ◽  
Vol 41 (3) ◽  
pp. 959-973 ◽  
Author(s):  
Young Bong Chang ◽  
◽  
Vijay Gurbaxani ◽  
Kiron Ravindran ◽  
◽  
...  
Keyword(s):  
Information Technology ◽  
Asset Transfer ◽  
Information Technology Outsourcing
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