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The Beginning of New Change: Maeil's Outsourcing  

Moon, Yong-Eun (Silla University, Department of e-Business)
Han, Sang-Cheol (Sogang University, Graduate School)
Hong, Yu-Jin (Sogang University, Graduate School)
Publication Information
Information Systems Review / v.7, no.2, 2005 , pp. 257-276 More about this Journal
Abstract
The most distinctive characteristic in Maeil's outsourcing strategy was the rapid decision process done by CEO. At first, Maeil made a contract with a outsourcing vendor based on 50% investment for 5 years. However, 3 years later Maeil changed their outsourcing strategy from 10% share to 100% outsourcing. This is for the efficiency improvement and cost reduction. Also, Maeil organized separate TFT which could control IS quality. This TFT reviewed the feasibility of requirement analysis and IS planning process. Through this cooperation between TFT and the outsourcing vendor, Maeil could get the stable IT development and operation. During last 5 years, Maeil achieved great performance in the area of IT development and operation from the outsourcing. The present issue related to outsourcing strategy is whether Maeil will continue the current contract or change the vendor due to the anxiety of becoming a captive customer.
Keywords
Outsourcing Strategy; Outsourcing Performance; IS Innovation;
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