Information technology outsourcing (ITO) can be defined as “the commissioning of a third party (or a number of third parties) to manage a client organization’s IT assets, people, and/or activities […] to required results” (Fitzgerald and Willcocks, 1994). It has been a pivotal topic on Chief Information Officers’ (CIO) agendas ever since Eastman Kodak’s decision to hand over their information systems function to IBM, DEC, Anderson Consulting, and Businessland in 1989. Never before had such a wellknown company that considered IT as a strategic asset handed over responsibility for it to an external partner (Applegate, 1992). The deal showed that ITO can constitute an alternative to managing complex Information Technology (IT) systems in-house (Kern and Willcocks, 2000) and subsequently led executives across different industries to follow suit and sign large contracts worth multiple hundred million dollars. The “Kodak effect” served as a starting point to what would become an important strategic matter for IT managers to consider (Caldwell, 1994). 30 years later, ITO has developed into a common practice for organizations of all sizes, industries, and geographies (Qi and Chau, 2013). Over the course of three decades, practitioners have come to appreciate ITO especially for its advantages in terms of cost, flexibility, and the possibility to capitalize on external capabilities (Martins et al., 2015; Schneider and Sunyaev, 2016). Today, virtually every Fortune 500 company2 and many large public institutions outsource a significant portion of their IT services (Patil and Wongsurawat, 2015). As a consequence, an entire global industry has evolved around ITO, with annual growth rates of around 10% and an estimated market size of around 320 billion US dollars in 2015 (Faisal and Raza, 2016). The increasing relevance of ITO in practice has also attracted considerable research that has explored various aspects of outsourcing, including common motivations, outcomes, success factors, benefits, and risks (Dibbern et al., 2004; Gonzalez et al., 2006; Lacity et al., 2009; Lacity et al., 2010; Lacity et al., 2016; Liang et al., 2015).
Notwithstanding its three decades of existence, however, ITO remains a dynamic phenomenon that is subject to the ongoing rapid developments in the economic and societal environment in which it is embedded. Major developments in the field of IT, particularly the ever-progressing digitalization and the rise of IT-centered and -enabled business models (Bughin et al., 2019; Harvey Nash/KPMG, 2018; Legner et al., 2017), require adequate consideration in IT sourcing decision-making.
| Identifer | oai:union.ndltd.org:DRESDEN/oai:qucosa:de:qucosa:72970 |
| Date | 01 December 2020 |
| Creators | Könning, Michael |
| Contributors | Strahringer, Susanne, Wiener, Martin, Technische Universität Dresden |
| Source Sets | Hochschulschriftenserver (HSSS) der SLUB Dresden |
| Language | English |
| Detected Language | English |
| Type | info:eu-repo/semantics/publishedVersion, doc-type:doctoralThesis, info:eu-repo/semantics/doctoralThesis, doc-type:Text |
| Rights | info:eu-repo/semantics/openAccess |
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