1995
DOI: 10.1177/026839629501000403
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The Outsourcing of Information Services: Transforming the Nature of Business in the Information Industry

Abstract: The structure of the decision faced by a firm to outsource or to retain information services is developed in this paper. Theory regarding the decision structure is discussed and the results of in-depth interviews with a variety of chief information officers presented. Specifically, the forces that drive the outsourcing decision are identified, the incentives and disincentives of outsourcing relationships being addressed in detail. A framework for contemplating the outsourcing option is presented, followed by r… Show more

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Cited by 84 publications
(99 citation statements)
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References 18 publications
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“…Overall, by adopting cloud computing applications, the quality of application services will be improved. Clark et al 1995;Gewald and Dibbern 2009;Benlian and Hess 2011 Cost advantages (CA) A cloud computing provider can deliver applications at lower costs than our company can. Our internal production costs are higher than the price a cloud computing provider charges for its services.…”
Section: Sample Validitymentioning
confidence: 99%
“…Overall, by adopting cloud computing applications, the quality of application services will be improved. Clark et al 1995;Gewald and Dibbern 2009;Benlian and Hess 2011 Cost advantages (CA) A cloud computing provider can deliver applications at lower costs than our company can. Our internal production costs are higher than the price a cloud computing provider charges for its services.…”
Section: Sample Validitymentioning
confidence: 99%
“…The ITO provider invests more in new technologies than the recipient; the supplier also bears a greater risk of technological obsolescence, especially of the equipment the supplier uses (Clark, et al, 1995;Grover, et al, 1994Grover, et al, , 1996.…”
Section:  Reduce the Risk Of Technological Obsolescencementioning
confidence: 99%
“…Uncertainty is found in many aspects of IT (Earl, 1991;Cheon et al, 1995) and is particularly associated with systems development and unpredictable business and technological change. The difficulties and costs of both market usage and provision via the hierarchy perhaps explain why extremes of vertical integration and spot market transactions in IT are comparatively rare (Mylonopoulos & Ormerod, 1995), resulting in a range of sourcing options (Clark et al, 1995;Lacity et al, 1996).…”
Section: Transaction Cost Economics: Outlinementioning
confidence: 99%