Firm Strategic Profile and IT Outsourcing

Benoit A. Aubert (), Guillaume Beaurivage (), Anne-Marie Croteau () and Suzanne Rivard ()
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Benoit A. Aubert: 2020 University
Guillaume Beaurivage: 3000 chemin de la Côte Sainte-Catherine
Anne-Marie Croteau: Concordia University
Suzanne Rivard: 3000 chemin de la Côte Sainte-Catherine

A chapter in Information Systems Outsourcing, 2009, pp 217-240 from Springer

Abstract: The objective of this paper is to examine the relationship between business strategy and the level and nature of information technology (IT) outsourcing behaviors. Past research in IT outsourcing has mainly focused on the role of the transaction itself in explaining outsourcing decisions, without investigating the influence of strategic characteristics of the organization. The few studies looking at the strategic profile of organizations led to inconclusive results when looking at the direct effect of strategic characteristics of organizations on outsourcing decisions. When observing organizations, one cannot avoid noticing that organizations of similar size and dealing in the same markets sometimes make very different decisions with respect to IT outsourcing. Because major organizational decisions are likely to reflect a firm's business strategy, it is anticipated that the decisions to outsource IT activities will be influenced by the business strategy. The IT outsourcing phenomenon has been expanding during the past decade, and this growth is likely to continue (Pati & Desai, 2005; Young & Scardino, 2006). An important strand of research has examined the outsourcing decision using transaction costs theory.

Keywords: Business Strategy; Vertical Integration; Maintenance Activity; Debt Ratio; Strategic Management Journal (search for similar items in EconPapers)
Date: 2009
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Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-3-540-88851-2_10

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DOI: 10.1007/978-3-540-88851-2_10

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