• Journal of Information Technology Applications and Management
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• v.11 no.3
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• pp.35-62
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• 2004

Recently, IT outsouricng has been one of the major concerns of many companies. This paper explores the relationship between information technology outsourcing risk factors and outsourcing performance. It is based upon a three-phase process utilizing IPO (Input-Process-Output) system. The first phase means the outsourcing planning risks t~at arise from overall environment of outsourcing, organizational refuse, and wrong contracts. The second phase implies outsourcing operational risks, which are occurred while out-sourcing perform and consist of organizational acceptances of outsourcing, partnership and hidden costs. The last phase is outsourcing performance based on four perspective of BSC(Blanced Scored Card). The survey was performed on the IT/IS firms, and the data was collected from 53 service receivers. The result of the analysis are as follows. First, Outsourcing planning risks positively affects the operational risks. Second, Outsourcing operational risks negatively affects the Outsourcing Performance.

• The Transactions of the Korea Information Processing Society
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• v.4 no.6
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• pp.1401-1417
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• 1997

The major objective of this study is to propose an estimation method for the equipment operating cost in the data center outsourcing situation. To accomplish the objective, the fundamental concepts about the outsourcing pricing is first established by analyzing the previous research in this area. Then an actual case of data center outsourcing is evaluated. Based on the conceptual model and the actual case, a new method is proposed. Validity of the proposed method is verified by the quantitative comparison with the previous method. Reasonability and usefulness of the method were evaluated through the customer survey.

• Asia pacific journal of information systems
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• v.7 no.3
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• pp.39-59
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• 1997

This study presents the growth strategy of outsourcing service by finding out the differences of importance between user firms and system integration(SI) firms in Korean outsourcing business, The result of data analysis reveals that there are siginificant differences between user firms and SI firms in some components of information systems(IS) outsourcing services. User firms regarded integation of distributea data centers as the prominent issue of IS environment changes. Meanwhile, SI firms chose management of IS/VAN center, office automation(OA), and management of global network, as the more important issues in the application area of outsourcing. Among the merits of outsourcing, both of them considered cost reduction and IS flexibility as the most important factors, However, they chose the difficulty of management control and the lack of operation knowledge among the demerits of outsourcing, Also, they commonly selected overall IS consulting among the components of outsourcing diffusion. In the question of future outsourcing services, user firms chose the adoption of client/server architecture, while SI firms selected the application of multimedia. These results show that there are some differences of preference between user firms and SI firms. Most of user firms consider the outsourcing to maximize information utilization, while the service suppliers focus on new IT adoption and its application to organization. For the strategic use of outsourcing services, SI firms are required to establish the diffusion strategy to meet the outsourcing needs of user firms.

• Journal of the Korean Operations Research and Management Science Society
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• v.27 no.3
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• pp.21-40
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• 2002

Recently, IT outsourcing has become a very important management strategy which implements information systems in organizations. This paper investigates the risks and strategic recognition as a key factors affecting on the degree of IT outsourcing. Specifically the risks of IT outsourcing and its four components-risk of control, risk of economical, risk of technical, risk of relational - are examined to be a negative effect on the degree of outsourcing. And strategic recognition about outsourcing is examined how to affect en the risks and the degree of IT outsourcing. To empirically test these relationships, data ere gathered from senior IT managers in 86 corporations. Results of this study show that the degree of outsourcing is strongly influenced by risk of control, risk of economical, risk of relational. But risk of technical does not influence on the degree of outsourcing. And strategic recognition about outsourcing is found that is negative effect on the risks of IT outsourcing and positive effect on the degree of IT outsourcing. The results provide a good framework to minimize the risks for IT outsourcing success.

• Journal of Information Technology Applications and Management
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• v.24 no.4
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• pp.153-170
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• 2017

As the digital economy goes global, firms are trying to find suppliers that can address their managerial goals and strategies. The alternatives are not confined to domestic firms. Firms have been trying to connect to foreign partners worldwide. Although offshore outsourcing grants firms various benefits, they present big cultural challenges. However, there is little research on the impact of cultural or country factors on outsourcing. The goal of this paper is to synthesize the outsourcing success literature and develop propositions for outsourcing success in the context of offshore outsourcing. This paper proposes that cultural effects should be included in evaluating the success of offshore outsourcing. Knowledge sharing and the scope of outsourcing are adopted in the base outsourcing success model from previous literature. In the extended model partnership quality is included as a mediator and organizational capability and outsourcing relationship type are also included as moderator. Finally, the integrated framework of offshore outsourcing success includes cultural factors as moderators of the relationships between outsourcing success antecedents and the success of offshore outsourcing. Reasoning for propositions, managerial implications, and future research directions are discussed.

• Journal of the Korean Operations Research and Management Science Society
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• v.32 no.3
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• pp.97-114
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• 2007

IT outsourcing providers has been expanded from a single functional system to the entire IT service to gain sustainable competitiveness. This new trend of IT outsourcing need outsourcing management capability based on a firm's core capacity. Hiring external IT service providers to manage part or all of its information-related services helps a firm focus on its core business and provides better services to its clients, thus obtaining sustainable competitive advantage. This research investigates the major factors that determine the level of a particular firm's success at IT outsourcing. Based on process innovation and core-competency theories, we identify three significant components of a firm's IT outsourcing management method (ITOMM): level of core-competency-based management, maturity of outsourced tasks, and maturity of outsourcing management. Comprehensive data collection was conducted through an outsourcing association. The survey data were analyzed using a structural analysis method. Maturity of outsourced tasks and maturity of outsourcing management were found to affect project performance directly, while level of core-competency-based management only indirectly impacted project performance through its positive impact on the other two ITOMM components.

• Asia pacific journal of information systems
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• v.17 no.3
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• pp.131-146
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• 2007

Recently, the role of IT service providers has been enlarged from managing a single function or system to reconstructing entire information management processes in new ways to contribute to shareholder value across the enterprise. This movement toward extensive and complex outsourcing agreements has been driven by the assumption that outsourcing information technology functions is a reliable approach to maximizing resource productivity. Hiring external IT service providers to manage part or all of its information-related services helps a firm focus on its core business and provides better services to its clients, thus obtaining sustainable competitive advantage. This practice of focusing on the strategic aspect of outsourcing is referred to as strategic sourcing where the focus is capability sourcing, not procurement. Given the importance of the strategic outsourcing, however, to our knowledge, there is little empirical research on the relationship between the strategic outsourcing orientation and outsourcing performance. Moreover, there is little research on the factor that makes the strategic outsourcing effective. This study is designed to investigate the relationship between strategic IT outsourcing orientation and IT outsourcing performance and the process through which strategic IT outsourcing orientation influences outsourcing performance, Based on the framework of strategic orientation-performance and core competence based management, this study first identifies core competency orientation as a proper strategic orientation pertinent to IT outsourcing and IT outsourcing process management capability as the mediator to affect IT outsourcing performance. The proposed research model is then tested with a sample of 200 firms. The findings of this study may contribute to the literature in two ways. First, it draws on the strategic orientation - performance framework in developing its research model so that it can provide a new perspective to the well studied phenomena. This perspective allows practitioners and researchers to look at outsourcing from an angle that emphasizes the strategic decision making to outsource its IT functions. Second, by separating the concept of strategic orientation and outsourcing process management capability, this study provides practices with insight into how the strategic orientation can work effectively to achieve an expected result. In addition, the current study provides a basis for future studies that examine the factors affecting IT outsourcing performance with more controllable factors such as IT outsourcing process management capability rather than external hard-to-control factors including trust and relationship management. This study investigates the major factors that determine IT outsourcing success. Based on strategic orientation and core competency theories, we develop the proposed research model to investigate the relationship between core competency orientation and IT outsourcing performance and the mediating role of IT outsourcing process management capability on IT outsourcing performance. The model consists of two independent variables (core-competency-orientation and IT outsourcing process management capability), and two dependent variables (outsourced task complexity and IT outsourcing performance). Comprehensive data collection was conducted through an outsourcing association. The survey data were analyzed using a structural analysis method. IT outsourcing process management capability was found to mediate the effect of core competency orientation on both outsourced task complexity and IT outsourcing performance. Further analysis and findings are discussed.

• KSII Transactions on Internet and Information Systems (TIIS)
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• v.4 no.2
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• pp.154-173
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• 2010

Database outsourcing is unavoidable in the near future. In the scenario of data stream outsourcing, the data owner continuously publishes the latest data and associated authentication information through a service provider. Clients may register queries to the service provider and verify the result's correctness, utilizing the additional authentication information. Research on On-line Stream Analytics (OLSA) is motivated by extending the data cube technology for higher multi-level abstraction on the low-level-abstracted data streams. Existing work on OLSA fails to consider the issue of database outsourcing, while previous work on stream authentication does not support OLSA. To close this gap and solve the problem of OLSA query authentication while outsourcing data streams, we propose MDAHRB and MDAHB, two multi-dimensional authentication approaches. They are based on the general data model for OLSA, the stream cube. First, we improve the data structure of the H-tree, which is used to store the stream cube. Then, we design and implement two authentication schemes based on the improved H-trees, the HRB- and HB-trees, in accordance with the main stream query authentication framework for database outsourcing. Along with a cost models analysis, consistent with state-of-the-art cost metrics, an experimental evaluation is performed on a real data set. It exhibits that both MDAHRB and MDAHB are feasible for authenticating OLSA queries, while MDAHRB is more scalable.

• The Journal of Information Systems
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• v.11 no.1
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• pp.1-28
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• 2002

Today, IT outsourcing has become a very important management strategy of implementing information systems in organizations. This paper investigates the risks and strategic recognition as a key factors effecting on the degree of outsourcing, Specifically the risks of outsourcing and its four components-control risk, economical risk, technical risk, relational risk-are examined to be a negative effect on the degree of outsourcing. And strategic recognition about outsourcing is examined to be a mediator factor between the risks and the degree of outsourcing. To empirically test these relationships, data are gathered from senior IT managers in 62 corporations. Results of this study show that the degree of outsourcing is strongly influenced by control risk, economical risk, relational risk. But technical risk does not influence on the degree of outsourcing. And strategic recognition about outsourcing is found that is mediator concern with the risks and the degree of outsourcing. The results indicate to provide a good framework to minimize the risks for IT outsourcing success.

• Asian Journal of Business Environment
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• v.8 no.3
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• pp.23-31
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• 2018

Purpose - The purpose of this study is to analyze the comparative financial performance of outsourcing and vertically integrated corporations from Footwear and Apparel industry. Research design, data, and methodology - Secondary data is collected from the published audited annual reports of the footwear and apparel corporations listed on stock exchanges globally. In the current study, 40 footwear firms have been opted that include 20 vertically integrated and 20 outsourcing firms. The sample is distributed into two groups based on threshold up-to 50 percent respectively outsourcing and vertically integrated companies. Sample independent t-test is applied to compare the financial performance of outsourcing and vertically integrated firms. Results - Based on the investigation of 10 years' data of financial ratio, the results of the study show that there is significant difference between outsourcing and vertical integration strategy on return on assets, return on equity while insignificant difference has found with profit margin. Conclusions - The findings of the current study indicates that there is significant difference between the financial performance of outsourcing and vertically integrated firms in terms of return on asset, return on equity and insignificant difference in terms of profit margin.