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• W190617385 abstract "Abstract In recent years there has been a significant increase in the incidence of information systems (IS) outsourcing. Technological uncertainty, cost reduction, the need to concentration on core business, and the increasing quality and competition among a growing cadre of service providers, (e.g.) are often discussed as key outsourcing motivators. While a number of theoretical frameworks have been used to structure studies on this phenomenon, the efforts have often been piece-meal and disjointed. IS outsourcing involves multiple facets, including the initial decision, choice of governance structure and the management of the ongoing relationship. This study attempts to provide a view of outsourcing from three theoretical lenses – resource/knowledge-based, transaction costs, and agency theory, focusing on key variables espoused by these theories and their relevance to the different facets of outsourcing. It is suggested that resource/knowledge-based theory can help explain strategic initial IS outsourcing decisions and some IT determinants of sustained competitive advantage related to those decisions. Transaction costs theory can help explain cost-reduction strategies for initial IS outsourcing decisions and point out different governance mechanisms for a variety of IS outsourcing relationships (e.g., supplier-firm and contract type choices). Agency theory can help design and explain adequate and costliest ways (i.e., compensation schemes) to manage IS outsourcing and/or internalized (i.e., internal procurement) relationships. Collectively, it is hoped that this effort will serve to integrate disparate approaches to this important and growing phenomenon. Keywords: Information Systems Outsourcing, Outsourcing theory, research model" @default.
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• W190617385 date "2001-01-01" @default.
• W190617385 modified "2023-09-27" @default.
• W190617385 title "Examining the outsourcing of information systems functions from diverse theoretical perspectives" @default.
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