Venkatraman, N.

English

AIS Electronic Library (AISeL)

Association for Information SystemsAIS Electronic Library (AISeL)ICIS 1993 Proceedings International Conference on Information Systems(ICIS)1993PANEL 13 INTERNATIONAL PERSPECTIVESON INFORMATION TECHNOLOGYOUTSOURCINGN. VenkatramanMassachusetts Institute of TechnologyFollow this and additional works at: http://aisel.aisnet.org/icis1993This material is brought to you by the International Conference on Information Systems (ICIS) at AIS Electronic Library (AISeL). It has been acceptedfor inclusion in ICIS 1993 Proceedings by an authorized administrator of AIS Electronic Library (AISeL). For more information, please contactelibrary@aisnet.org.Recommended CitationVenkatraman, N., "PANEL 13 INTERNATIONAL PERSPECTIVES ON INFORMATION TECHNOLOGY OUTSOURCING"(1993). ICIS 1993 Proceedings. 24.http://aisel.aisnet.org/icis1993/24PANEL 13INTERNATIONAL PERSPECTIVES ON INFORMATIONTECHNOLOGY OUTSOURCINGPanel Chair: N. Venkatraman, Massachusetts Institute of Technology, U.S.Panelists: Sid Huff, University of Western Ontario, CanadaLawrence Loh, Massachusetts Institute of Technology, U.S., and National University ofSingaporeJosep Valor, IESE, SpainThe governance of information technology (IT) is increasingly becoming a critical component of IT strategy (Henderson andVenkatraman 1993). In particular, one governance mechanism. outsourcing, which reflects a shift in Lhe locus of ITgovernance from hierarchy toward market-based or partnership modes that involve external technology vendors, has becomeimportant (Elam et at. 1988). As a strategy for managing the IT infrastructure, outsourcing has become widespread, yetcontroversial, in the last few years.The research literature in IT outsourcing emphasizes analytical models that discuss the benefits and limitations of IToutsourcing (Richmond, Seidmann and Whinston 1992) or practitioners' discussions on how to structure IT outsourcingcontracts (e.g., Fried 1993; Huber 1993). More recently, some empirical findings on this phenomenon within the U.S.context have been forthcoming (Loh and Venkatraman 1992a, 1992b. 1992c; Venkatraman and Loh 1993).In light of the pmsent global imperative in business competition, the criticality of a weU-conceived IT sourcing strategy isembracing an international dimension. While the state-of-the-art in terms of innovative sourcing choices originated in theU.S., firms, especially those in Canada and Europe, are increasingly considering outsourcing as a means of exploiting corecompetencies in the global marketplace. The winner of the next era of competition. depends on how well multinationalfirms can effectively muster Lhe use of critical strategic resources. Indeed, a well-positioned sourcing strategy for IT wouldpose a key influence on the ultimate success of firms in overcoming the global competition.This proposed panel appreciates the immense value of country-based diversily in rigorously examining the recentoutsourcing phenomenon. It draws from three diffe,unt sets of perspectives from countries in North America and WesteniEurope, with the recognition that outsourcing, as a component of IT strategy, has ramifications that cross national borders.While diversity is naturally present in this international panel, it hopes to go beyond this factor by also suggesting anintegrated approach to outsourcing research in the global context (i.e., it seeks to achieve "unity through diversily"). Thepanel is, in fact, a most timely and appropriate response to Ule ongoing research momentum on outsourcing that has juststarted worldwide.The specific objectives of Lhe panel are three-fold:1. Develop a set of generic research issues that guide inquiry efforts into IT outsourcing; while focusing on sourcing as 11theoretical phenomenon, these issues would be country-independenL2. l'resent conceptual perspectives and empirical results from Norlh America (U.S. and Canada) as well as Western Europe(Spain); these research findings would highlight the diverse context of IT outsourcing in view of the uniquecharacteristics and structure of business competition and technology in the country environment4083. Compare and contrast the perspectives and results from individual countries; the end result would be a cross-nationalsynthesis of research issues arising from the presentations, with a view to stimulating further international research in thisemerging area of IT inquiry.The panel comprises the following presentations.INTRODUCTION AND SYNTHESISN. Venkatraman will introduce the key issues on IT outsourcing within a broader context of IT strategy and its alignmentwith business strategy (Henderson and Venkatraman 1993) as well as particular theoretical and empirical results in IS andstrategy (Venkatraman and Loh 1993). He will highlight a unified framework that constitutes a basis for the subsequentcountry-specific presentations. He will also summarize the different presentations and develop an agenda for cross-nationalresearch.PERSPECTIVES FROM THE U.S.Lawrence Loh will propose a conceptual model of IT sourcing based on critical concepts in organizational economics. Hewill also highlight interesting empirical results from a large sample of leading U.S.-based corporations. His presentationwill be based on his doctoral research (Loh 1993) as well as joint research projects with Venkatraman (Loh andVenkatraman 19924 1992b, 1992c).PERSPECTIVES FROM CANADASid Huff will highlight his field studies of outsourcing alliances involving financial institutions in Canada. He will buildfrom his early article (Huff 1991) to offer research-based insights on IT outsourcing with a particular focus on Canadianpractice. In particular, he will present an outsourcing framework of risks and benefits that emerges from his currentresearch with leading Canadian companies.PERSPECTIVES FROM SPAINJosep Valor will present the empirical results on IT outsourcing practices based on a major field study of large firms inSpain. This set of results is rooted in a strategic IT planning approach (Andreu, Ricart and Valor 1992) and will reflectviews from both CEOs and CIOs. Thus, this study will also delineate results on outsourcing from both business and ITdomains.REFERENCESAndreu R.; Ricart, J. E.; and Valor, J. /nfonnation Systems Strategic Planning. Oxford: NCC Blackwell, 1992.Elam, J. J.; Ginzberg, M. J.; Keen, P. G. W.; and Zmud, R. W. Tra<onning the IS Organization. Washington, DC: ICITPress, 1988.Fried, L. "Outsourcing Confessions: Revealing Talk About Why Partnerships Sour." Computenvord, February 8, 1993,pp. 67-69.Henderson, J. C., and Venkatraman, N. "Strategic Alignment Leveraging Information Technology for TransformingOrganizations." /BM Systems lournaL Volume 32, February 1993.Huber, R. L. "'How Continental Bank Outsourced Its 'Crown Jewels'." Harvard Business Review, January-February1993, pp. 121-129.409Huff, S. L. "Outsourcing of Information Services." Business Quarterly, Spring 1991, pp. 62-65.Loh. L. The Economics and Organization of Information Technology Governance: Sourcing Strategies for CorporateInformation /71*astructures. Unpublished Ph.D. Dissertation, Massachusetts Institute of Technology, February 1993.Loh, L., and Venkatraman, N. "Determinants of Information Technology Outsourcing: A Cross-Sectional Analysis."Journal ofManagement /nfonnation Systems, Volume 8, Summer 1992a, pp. 7-24.Loh, L., and Venkatraman, N. "Diffusion of Information Technology Outsourcing: Influence Sources and the KodakEffect." Information Systems Research, Volume 3, December 1992b, pp. 334-358.Loh, L., and Venkatraman, N. "Stock Maticet Reaction to Information Technology Outsourcing: An Event Study." MITSloan School of Management, Working Paper, 1992c.Richmond, W. B.; Seidmann, A.; and Whinston, A. B. "Contract Theory and Information Technology Outsourcing."Decision Support Systems, Volume 8, Number 5, September 1992, pp. 459-477.Venkatraman, N., and Loh, L. "Strategic Issues in Information Technology Sourcing: Patterns, Perspectives, andPrescriptions." MIT Sloan School of Management, Working Paper, 1993.410

PANEL 13 INTERNATIONAL PERSPECTIVES ON INFORMATION TECHNOLOGY OUTSOURCING

https://aisel.aisnet.org/cgi/viewcontent.cgi?article=1041&amp;context=icis1993

PANEL 13 INTERNATIONAL PERSPECTIVES ON INFORMATION TECHNOLOGY OUTSOURCING

Abstract

Similar works

Full text

Available Versions

AIS Electronic Library (AISeL)