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The Risks and Effects of Outsourcing on the Information Systems Function and the Firm

IS outsourcing, especially large-scale IS outsourcing, is a comparatively recent and rapidly growing IS phenomenon, but it is also an inherently risky activity. In an IS outsourcing arrangement, the outsourcing vendor accepts responsibility for IS resources and functions formerly controlled directly by the firm. This research examines IS outsourcing from two perspectives. (1) From an IS perspective, it examines the risk perceptions of IS managers of fourteen Fortune-500 firms who had recently conducted an outsourcing evaluation. (2) From a financial perspective, it examines the theoretical relationship of IS outsourcing with financial performance, and investigates the empirical effects of IS outsourcing on the firm's market value and market risk. This research views IS outsourcing as an independent variable whose effects on the firm may be measured as changes in security returns, changes in asset risk, changes in capital structure, and long-term changes in profitability. To accomplish this, it characterizes IS outsourcing as a sale-and-leaseback transaction.

Identiferoai:union.ndltd.org:unt.edu/info:ark/67531/metadc279257
Date05 1900
CreatorsPeak, Daniel Alan
ContributorsWindsor, John C. (John Clayton), 1946-, Vedder, Richard Glen, 1950-, Yellen, Richard E., Norris, Cathleen A.
PublisherUniversity of North Texas
Source SetsUniversity of North Texas
LanguageEnglish
Detected LanguageEnglish
TypeThesis or Dissertation
Formatxi, 285 leaves : ill., Text
RightsPublic, Copyright, Copyright is held by the author, unless otherwise noted. All rights reserved., Peak, Daniel Alan

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