A Resource-Based Analysis of Outsourcing: Evidence from Case Studies

The central role that information technology plays in the management of companies, the massive investments that are required, and a preoccupation for rationalization explain in good part the renewed interest in the strategies used for information systems sourcing. In-house provision is often seen as the best way to provide an organization with IT services that are well adapted to support its business activities while preserving its trademark processes and know-how. On the other hand, critics argue that a better solution is to outsource those IT activities to specialists, thus permitting the company to focus on its core business. The choice of a sourcing mode has an impact on the ability of the firm to implement its systems and ultimately to compete in its field of business. In order to better understand under what conditions a firm should choose one sourcing mode over another, we argue that it is necessary to analyze the interactions between a firm's competencies and the strategic value of those competencies. This is investigated using evidence from 21 information system projects. The0501n findings were that the best predictor of success and failure, by far, is the fit between the governance mode and the position of the project in the value/availability matrix. Another interesting finding is that no sourcing mode per se seems to lead to successful outcomes. It is always a matter of selecting the appropriate mode for each situation. De plus en plus, les technologies de l'information sont au centre des préoccupations des gestionnaires. Elles commandent des investissements massifs et peuvent être gérées de diverses manières. Traditionnellement, une gestion interne était favorisée pour fournir à l'organisation des services sur mesure et pour protéger des pratiques uniques, permettant à l'organisation de se différencier. Les détracteurs de cette approche soutiennent que l'impartition est un meilleur choix. L'impartition permet à la firme de se concentrer sur ses compétences de bases tout en lui donnant accès à des spécialistes de pointe. Pour mieux comprendre le lien entre les compétences de la firme et l'impartition, 21 projets sont étudiés. Les résultats indiquent que le meilleur prédicteur de succès est l'adéquation entre le mode de gestion et le profil de compétences de la firme.Outsourcing of IT, resource-based theory, IT resources, Impartition, approche centrée sur les resources, étude de cas

Narratives of an outsourced information systems failure in a small enterprise

In this study we investigate a case of an outsourced information systems (IS) failure (OISF) within the collaborative partnership among asymmetric partners. A small and medium-sized enterprise (SME) is dealing with an independent software vendor (ISV) conducting a project of implementing an IS that fails. We used a narrative research methodology for our enquiry. In the construction of our narrative we followed the OISF framework as a theoretical touchstone. As a major conclusion we found that asymmetric collaborations with partners with inadequate managerial and technical IT capabilities are extremely prone to OISF’s. We showed that an outcome-based and fixed price contract is not an adequate instrument to conduct such a partnership and to avoid a failure

Outsourcing and acquisition models comparison related to IT supplier selection decision analysis

This paper presents a comparison of acquisition models related to decision analysis of IT supplier selection. The main standards are: Capability Maturity Model Integration for Acquisition (CMMI-ACQ), ISO / IEC 12207 Information Technology / Software Life Cycle Processes, IEEE 1062 Recommended Practice for Software Acquisition, the IT Infrastructure Library (ITIL) and the Project Management Body of Knowledge (PMBOK) guide. The objective of this paper is to compare the previous models to find the advantages and disadvantages of them for the future development of a decision model for IT supplier selection

Narratives of an outsourced information systems failure in a small enterprise

In this study we investigate a case of an outsourced information systems (IS) failure (OISF) within the collaborative partnership among asymmetric partners. A small and medium-sized enterprise (SME) is dealing with an independent software vendor (ISV) conducting a project of implementing an IS that fails. We used a narrative research methodology for our enquiry. In the construction of our narrative we followed the OISF framework as a theoretical touchstone. As a major conclusion we found that asymmetric collaborations with partners with inadequate managerial and technical IT capabilities are extremely prone to OISF’s. We showed that an outcome-based and fixed price contract is not an adequate instrument to conduct such a partnership and to avoid a failure

A Resource-Based Analysis of IT Oursourcing

This paper studies the relationships between the choice of a sourcing mode for information systems, the value of the resources used in systems development activities and the presence of those resources at sufficient level within the firm. The objective is to better understand the factors underlying the decision to keep the development of an information system inside the firm or to entrust it to an outside partner. A sourcing model is proposed using the resource-based theory. A case study is used to illustrate the concepts used in the research model. Data from this case illustrate how the model could be used to predict the appropriate sourcing mode, given the availability of the necessary resources and their strategic value. Ce document étudie les liens entre le choix d'un mode de gestion (interne ou impartition) et la valeur stratégique des ressources utilisées pour la conduite de l'activité évaluée. Les éléments de base de l'approche des ressources sont présentés et un modèle d'approvisionnement est dérivé de cette approche. Un cas est utilisé pour illustrer les concepts.Resource-based theory, software development, outsourcing, management of software development projects, Théorie fondée sur les compétences, développement de logiciels, impartition, gestion de projets de développement de systèmes

Implementing centralised IT service management: drawing lessons from the public sector

[Abstract]: The IT service management model represents a paradigm shift for IT organisations as it deemphasizes the management of IT assets and focuses on the provision of quality end-to-end IT services. This paper presents part of an in-depth study that examines the experience of a government agency, Queensland Health, in the implementation of a centralised IT service management model based on the ITIL framework. The paper sheds light on the challenges and breakthroughs, distils a set of critical success factors and offers a learning opportunity for other organisations. Outsourcing some activities and tool requirements to vendors was seen as one contributor to success although ensuring effective technology transfer to in-house staff was also necessary. Another success factor was centralisation of IT services. Commitment of senior management was also crucial as was a recognition of the need for effective change management to transform the organisational culture to a service-oriented focus