The Effect of Service Quality and Partnership on the Outsourcing of Information Systems Functions
Numerous corporations today are outsourcing specific information systems (IS) functions. The diversity of these outsourcing arrangements goes well beyond that associated with the more traditional facilities management. This paper examines outsourcing trends and reports the results of an empirical st...
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| Veröffentlicht in: | Journal of management information systems 1996-04, Vol.12 (4), p.89-116 |
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| container_end_page | 116 |
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| container_title | Journal of management information systems |
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| creator | Grover, Varun Cheon, Myun Joong Teng, James T.C. |
| description | Numerous corporations today are outsourcing specific information systems (IS) functions. The diversity of these outsourcing arrangements goes well beyond that associated with the more traditional facilities management. This paper examines outsourcing trends and reports the results of an empirical study on IS outsourcing. Overall IS outsourcing and its five component functions-namely, applications development, systems operations, telecommunications, end-user support, and systems planning and management-are examined for their relationships with outsourcing success. The effect of service quality of the provider and the ability of companies to build a partnership on these relationships are hypothesized and studied. Data from senior executives in 188 companies are gathered. Outsourcing success is found to be highly related to the degree of outsourcing of two functions, systems operations and telecommunications. The results indicate that transaction cost theory provides a good framework for IS outsourcing and that asset specificity of outsourcing transactions needs to be considered in any decision to outsource. Also, both service quality of the vendor and elements of partnership such as trust, cooperation, and communication are important for outsourcing success. Implications of the study for research and practice are discussed. |
| doi_str_mv | 10.1080/07421222.1996.11518102 |
| format | Article |
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The diversity of these outsourcing arrangements goes well beyond that associated with the more traditional facilities management. This paper examines outsourcing trends and reports the results of an empirical study on IS outsourcing. Overall IS outsourcing and its five component functions-namely, applications development, systems operations, telecommunications, end-user support, and systems planning and management-are examined for their relationships with outsourcing success. The effect of service quality of the provider and the ability of companies to build a partnership on these relationships are hypothesized and studied. Data from senior executives in 188 companies are gathered. Outsourcing success is found to be highly related to the degree of outsourcing of two functions, systems operations and telecommunications. The results indicate that transaction cost theory provides a good framework for IS outsourcing and that asset specificity of outsourcing transactions needs to be considered in any decision to outsource. Also, both service quality of the vendor and elements of partnership such as trust, cooperation, and communication are important for outsourcing success. Implications of the study for research and practice are discussed.</description><identifier>ISSN: 0742-1222</identifier><identifier>EISSN: 1557-928X</identifier><identifier>DOI: 10.1080/07421222.1996.11518102</identifier><language>eng</language><publisher>Armonk, N.Y: Routledge</publisher><subject>Alliances ; business partnership ; Business structures ; Collaboration ; Competitive advantage ; Costs ; Facilities management ; Information management ; Information storage and retrieval systems ; Information systems ; information systems outsourcing ; Information technology ; Maintenance management ; Outsourcing ; outsourcing success ; Quality of service ; service quality ; Software ; Statistical analysis ; Strategic management ; Success ; Telecommunications ; Telecommunications systems ; Trends ; User services ; Vendors</subject><ispartof>Journal of management information systems, 1996-04, Vol.12 (4), p.89-116</ispartof><rights>1996 by M. E. Sharpe, Inc. All rights reserved. 1996</rights><rights>Copyright 1996 M.E. Sharpe, Inc.</rights><rights>Copyright M. E. Sharpe Inc. Spring 1996</rights><lds50>peer_reviewed</lds50><woscitedreferencessubscribed>false</woscitedreferencessubscribed><citedby>FETCH-LOGICAL-c303t-2840a60c8fe6b8b95b910b37b939d18b0477276be21b7791be4094028e2114933</citedby><cites>FETCH-LOGICAL-c303t-2840a60c8fe6b8b95b910b37b939d18b0477276be21b7791be4094028e2114933</cites></display><links><openurl>$$Topenurl_article</openurl><openurlfulltext>$$Topenurlfull_article</openurlfulltext><thumbnail>$$Tsyndetics_thumb_exl</thumbnail><linktopdf>$$Uhttps://www.jstor.org/stable/pdf/40398179$$EPDF$$P50$$Gjstor$$H</linktopdf><linktohtml>$$Uhttps://www.jstor.org/stable/40398179$$EHTML$$P50$$Gjstor$$H</linktohtml><link.rule.ids>314,780,784,803,27869,27924,27925,58017,58250</link.rule.ids></links><search><creatorcontrib>Grover, Varun</creatorcontrib><creatorcontrib>Cheon, Myun Joong</creatorcontrib><creatorcontrib>Teng, James T.C.</creatorcontrib><title>The Effect of Service Quality and Partnership on the Outsourcing of Information Systems Functions</title><title>Journal of management information systems</title><description>Numerous corporations today are outsourcing specific information systems (IS) functions. The diversity of these outsourcing arrangements goes well beyond that associated with the more traditional facilities management. This paper examines outsourcing trends and reports the results of an empirical study on IS outsourcing. Overall IS outsourcing and its five component functions-namely, applications development, systems operations, telecommunications, end-user support, and systems planning and management-are examined for their relationships with outsourcing success. The effect of service quality of the provider and the ability of companies to build a partnership on these relationships are hypothesized and studied. Data from senior executives in 188 companies are gathered. Outsourcing success is found to be highly related to the degree of outsourcing of two functions, systems operations and telecommunications. The results indicate that transaction cost theory provides a good framework for IS outsourcing and that asset specificity of outsourcing transactions needs to be considered in any decision to outsource. Also, both service quality of the vendor and elements of partnership such as trust, cooperation, and communication are important for outsourcing success. Implications of the study for research and practice are discussed.</description><subject>Alliances</subject><subject>business partnership</subject><subject>Business structures</subject><subject>Collaboration</subject><subject>Competitive advantage</subject><subject>Costs</subject><subject>Facilities management</subject><subject>Information management</subject><subject>Information storage and retrieval systems</subject><subject>Information systems</subject><subject>information systems outsourcing</subject><subject>Information technology</subject><subject>Maintenance management</subject><subject>Outsourcing</subject><subject>outsourcing success</subject><subject>Quality of service</subject><subject>service quality</subject><subject>Software</subject><subject>Statistical analysis</subject><subject>Strategic management</subject><subject>Success</subject><subject>Telecommunications</subject><subject>Telecommunications systems</subject><subject>Trends</subject><subject>User services</subject><subject>Vendors</subject><issn>0742-1222</issn><issn>1557-928X</issn><fulltext>true</fulltext><rsrctype>article</rsrctype><creationdate>1996</creationdate><recordtype>article</recordtype><sourceid>K30</sourceid><sourceid>8G5</sourceid><sourceid>ABUWG</sourceid><sourceid>AFKRA</sourceid><sourceid>AZQEC</sourceid><sourceid>BENPR</sourceid><sourceid>CCPQU</sourceid><sourceid>DWQXO</sourceid><sourceid>GNUQQ</sourceid><sourceid>GUQSH</sourceid><sourceid>M2O</sourceid><recordid>eNqFkMFqGzEQhkVooG7aR2gR7XmdGWm9ko7GJE0g4BQ70JuQ1tpkjb1yJG2K3z5aNs4t9CSY__s1w0fID4QpgoRLECVDxtgUlaqmiDOUCOyMTHA2E4Vi8u8nMhmgYqA-ky8xbgEAFVMTYtZPjl41jasT9Q1dufDS1o7-6c2uTUdqug29NyF1LsSn9kB9R1MuLPsUfR_qtnscWrdd48PepDbHq2NMbh_pdd_VwyB-JeeN2UX37e29IA_XV-vFTXG3_H27mN8VNQeeCiZLMBXUsnGVlVbNrEKwXFjF1QalhVIIJirrGFohFFpXgiqByTzAUnF-QX6O_x6Cf-5dTHqbT-zySs1QSiUrZBn69RGEHBSrsjrMVDVSdfAxBtfoQ2j3Jhw1gh6c65NzPTjXJ-e5-H0sbmPy4b1VAlcShcr5fMzb0dg_H3Ybncxx50MTTFe3UfP_7HgFXhuQZA</recordid><startdate>19960401</startdate><enddate>19960401</enddate><creator>Grover, Varun</creator><creator>Cheon, Myun Joong</creator><creator>Teng, James T.C.</creator><general>Routledge</general><general>M. 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The diversity of these outsourcing arrangements goes well beyond that associated with the more traditional facilities management. This paper examines outsourcing trends and reports the results of an empirical study on IS outsourcing. Overall IS outsourcing and its five component functions-namely, applications development, systems operations, telecommunications, end-user support, and systems planning and management-are examined for their relationships with outsourcing success. The effect of service quality of the provider and the ability of companies to build a partnership on these relationships are hypothesized and studied. Data from senior executives in 188 companies are gathered. Outsourcing success is found to be highly related to the degree of outsourcing of two functions, systems operations and telecommunications. The results indicate that transaction cost theory provides a good framework for IS outsourcing and that asset specificity of outsourcing transactions needs to be considered in any decision to outsource. Also, both service quality of the vendor and elements of partnership such as trust, cooperation, and communication are important for outsourcing success. Implications of the study for research and practice are discussed.</abstract><cop>Armonk, N.Y</cop><pub>Routledge</pub><doi>10.1080/07421222.1996.11518102</doi><tpages>28</tpages></addata></record> |
| fulltext | fulltext |
| identifier | ISSN: 0742-1222 |
| ispartof | Journal of management information systems, 1996-04, Vol.12 (4), p.89-116 |
| issn | 0742-1222 1557-928X |
| language | eng |
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| source | Periodicals Index Online; EBSCOhost Business Source Complete; JSTOR Archive Collection A-Z Listing |
| subjects | Alliances business partnership Business structures Collaboration Competitive advantage Costs Facilities management Information management Information storage and retrieval systems Information systems information systems outsourcing Information technology Maintenance management Outsourcing outsourcing success Quality of service service quality Software Statistical analysis Strategic management Success Telecommunications Telecommunications systems Trends User services Vendors |
| title | The Effect of Service Quality and Partnership on the Outsourcing of Information Systems Functions |
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