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A Descriptive Study of IT Outsourcing Risk Factors in the Korean Financial Industry  

Lee, Moo-Seok (에이더블유아이 컨설팅)
Lee, Jung-Hoon (연세대학교 정보대학원)
Park, Jong-Sung (연세대학교 정보대학원)
Publication Information
Journal of Information Technology Services / v.7, no.1, 2008 , pp. 151-166 More about this Journal
Abstract
The Outsourcing Industry has grown at a swift pace and evolved over time, and the Global IT Outsourcing market has shown signs of a steady growth. In the Korean financial industry, however, IT Outsourcing is not active as that of the advanced countries and there is lack of literature to understand the characteristics of IT Outsourcing in the financial industry. This paper, therefore, analyze the outcomes surveying 40 financial companies in Korea to investigate how IT Outsourcing risk factors affects IT Outsourcing intention. Based on our literature reviews based on number of key articles, journals, and the focus group interviews, IT Outsourcing risk factors are proposed into four different domains: Transaction, Client, Vendor and Environmental perspective. It found that two risk factors (Client and Environmental perspective) are closely related to the IT Outsourcing intention of the Korean financial industry. Finally, this paper concludes that concrete SLAs (Service Level Agreements) of the clients and support of government agencies are important to mitigate the IT Outsourcing risks.
Keywords
IT Outsourcing; The Korean Financial Industry; Outsourcing Risk Factors; A Descriptive Study;
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