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Service value in IT outsourcing

By Roland S. Padilla, Simon K. Milton and Lester W. Johnson


Economies are increasingly dominated by the service sector. More than ever, research is needed to address approaches that measure and optimize service. This paper examines service value in IT outsourcing and develops a conceptual framework for a service value model, and addresses the question of how service value is defined within the IT outsourcing context. This paper argues that a clear definition of the concept of service value is of critical relevance in measuring the concept within the IT outsourcing phenomena. The paper is conceptual, and integrates literature on service value premised on Service-Dominant (S-D) logic with literature on the core capabilities of IT outsourcing. Service value research based on the emergence of S-D logic is represented as a conceptual framework that utilizes a holistic lens for viewing the core capabilities in IT outsourcing. Then, for each lens, a diverse set of actors, each with expertise in their capability areas, is used to provide an overview to frame the numerous interactions among the service system entities. It was found that an important emergent theme from the literature is the importance of taking a holistic view, and the systemic nature of interactions among the participants, comprising leaders, monitors, facilitators, contractors, and system thinkers. By having reliable metrics and consistent service, IT outsourcing providers can optimize all the dynamic entities needed to deliver service value. A higher standard of service delivery is more likely to occur as a result of the IT service provider's measurable performance outcomes. The paper develops and utilizes a service value framework that describes how to map service value and its different concepts against the core capabilities of an IT service provider. The paper advances the literature on service science by defining service value in an IT outsourcing context

Topics: Service science, service value, Service-Dominant (S-D) Logic, Outsourcing
Publisher: Taylor & Francis
Year: 2013
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