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Does the Understanding of Core Competencies Matter to IT Outsourcing Performance?  

Kim, Young-Jin (서강대학교 경영학과)
Nam, Ki-Chan (서강대학교 경영학과)
Koo, Chul-Mo (인하대학교 BK)
Publication Information
Journal of the Korean Operations Research and Management Science Society / v.32, no.3, 2007 , pp. 97-114 More about this Journal
Abstract
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.
Keywords
IT Outsourcing; Process Innovation; Core Competence; IT Outsourcing Management Method (ITOMM); Maturity of Outsourced Tasks; Maturity of Outsourcing Management;
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