• Journal of the Korean Operations Research and Management Science Society
• /
• v.33 no.1
• /
• pp.71-105
• /
• 2008

Various stakeholders within and outside of the organization are involved and participate in the outsourced IS development. As their interests and goals are different conflict arises in the process of their interaction, and it is an important factor affecting outsourcing success. The study focuses on the conflict between client users and vendor, i.e. main conflict in the outsourcing project, and examines the relationship of conflict with project success, the antecedents of conflict, and investigates the effectiveness of conflict resolution facilitation. An integrated conceptual model is developed grounded on is outsourcing, IS development, project management, and organizational behavior literature. Nine specific hypotheses on the conflict in outsourcing projects are proposed, and data collection and analysis are performed with 214 ISD outsourcing projects. Results indicated that the conflict between client users and vendor in outsourcing projects was found to have negative effects on project success. Main causes affecting conflict were examined, and relative influences of these causes were clarified. Recently internal IT personnel have been faced their role change with the increase of outsourcing, and the importance of their conflict resolution facilitation was highlighted.

• Journal of the Korea Academia-Industrial cooperation Society
• /
• v.8 no.4
• /
• pp.894-899
• /
• 2007

IT Outsourcing has been take place for ages and its range has expanded. The cases are also often take place more but there are a few criteria for making decision of IT outsourcing project. Companies tend to take IT outsourcing as a trend or to follow competitor's IT outsourcing project. This study suggests the criteria for IT outsourcing project before going into the project. The criteria ate to describe what function of the companies need to take outsourcing. Research model is driven by Statistics and AHP method. Also, variables are presented for clear making decision. This model allows the companies find proper IT outsourcing type and conveniences.

• Journal of Information Technology Services
• /
• v.16 no.2
• /
• pp.61-83
• /
• 2017

It is well known that PMO (Project Management Office)s are effective for successful project performance. Since it takes a long time to develop PMO capability, many public organizations and companies that do not have internal PMOs are increasingly relying on outsourcing of PMO functions in order to introduce mature PMO capabilities in a short period of time. However, it is not verified yet whether outsourced PMO is more effective than internal PMO or not. The objective of this study is to verify the effectiveness of PMO outsourcing. There are many different definitions about PMO function, and even the same PMO function may have different effectiveness depending on the Industry. Thus, this study redefined the PMO functions and Project Performance based on the past studies, and conducted research by focusing on the ICT (Information and Communication Technology) industry. The ICT industry is an important industry economically and has been attracting global attention recently. This study is the first attempt to prove the effectiveness of outsourcing of PMO function in Korea. We found that PMO function outsourcing is effective for certain aspects of project performance, particularly technical support and infrastructure management. Overall, PMO outsourcing is usually more effective than internal PMO for improving project performance. The results of this study are expected to contribute to the development of PMO theories and practices.

• Asia pacific journal of information systems
• /
• v.23 no.2
• /
• pp.41-66
• /
• 2013

IS outsourcing has an important meaning to the Korean SME's (Small and Medium Enterprises) which want to use the IS Services. The objective of this research is to manage IT risks occurred during IS outsourcing project process. This study tries to identify these risks using real option methodology. In order to perform this objective, this study set up the research model which is composed of two main concepts. The first one is the risk factors occurred during IS outsourcing project process: User's Risks, Supplier's Risks and Transaction's Risks. All of these risks are based on Transaction Cost Theory. The second one is the intention to get (or buy) Real Options to manage the risks. In the research model, two types of real option are included: option to abandon (put option) and option to defer (call option). This study uses questionnaires and statistics methodology (PLS) to analyze the hypotheses proposed in the research model. Compared with prior studies, this study is different in two ways. First, this study restricts the range of IT risks. Prior researches of IT Risk management in MIS area cover various range of IT risks, but this study focuses on the Korean SME's IT outsourcing risks on the basis of Transaction Cost Theory. This study tests the relationship between the risks and real option types. Second, this study tries to test the moderating effect of user's risks and supplier's risks on the relationship between transaction's risks and real option types. In IT outsourcing research area, almost studies focus on the direct relationships between IT risks and outsourcing success. But in reality, the co-relationship among IT risks may occur. There are some findings according to the research analysis. First, risks related with user's risks have strong causal relationships with the intention to get option to abandon (put) and option to defer. But risks related with supplier's risks have causal relationships only with option to abandon (put). Second, user's risks and supplier's risks have no moderating effect on the relationship between transaction's risks and real option types. According to the research results, this research have some important and interesting implications on the IS outsourcing business area. First, this study identifies the effective types of real option to minimize the risks occurred during the IT outsourcing projects. So IS outsourcing service users can manage (or minimize) effectively the risks, which occurred during outsourcing projects, using real options. Second, real option gives benefits to suppliers and users at the same time (i.e., win-win strategies between IS outsourcing service providers and users). Vendors (:IS outsourcing service providers) can offer users the real options which can minimize the occurrence of risks in time. "IN TIME" means that before the IS outsourcing project starts, vendors can offer users the opportunity to buy real options in appropriate prices to manage the possibility of the risks of IS outsourcing project. And users also have chance to minimize the IT outsourcing risks occurred during the project process using real options.

• Journal of the Korean Operations Research and Management Science Society
• /
• v.32 no.3
• /
• pp.97-114
• /
• 2007

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.

• Proceedings of the Korea Society for Industrial Systems Conference
• /
• 2008.10b
• /
• pp.365-384
• /
• 2008

Many studies on ASP outsourcing area have focused on the Critical Success Factors(CSFs) of ASP outsourcing projects or on the service quality of ASP Service. But these studies have limitations to explain how to succeed in doing ASP outsourcing project. The objective of this research is to overcome this limitation by using the concept of "IT Risk" in Outsourcing. The effective control of the risks-caused during the IS outsourcing process-gives (ASP service using) users a powerful tool to minimize the risks and thus maximizes the possibility of ASP outsourcing project success. In order to perform this objective, this research set up the research model which is composed of three concepts. The three concepts are 1. Undesirable Outcomes(:UO) as IT outsourcing Risks, 2. The Source of Risks(:SOR) influencing the UO, and 3. the intention to get/execute Real Option Portfolio to control the risk level of SORs and UOs. This research has some important and interesting implications on the ASP outsourcing area. First, this research classifies the risk factors as three concepts and finds the interactions among them. Second, Using Real Option portfolio can control the risks effectively occurred during outsourcing projects. Third, Vendors(ASP service providers) can offer users IN TIME the options which can minimize the occurrence of risks.

• Journal of Convergence for Information Technology
• /
• v.8 no.5
• /
• pp.237-242
• /
• 2018

Researchers have suggested successful risk management as a key factor in successful IT outsourcing projects implementation. The documented investigations, however, have mainly addressed risk management only from a single perspective of either clients or IT vendors. This study explored the potential perception inconsistency regarding the risks between the client and the vendor for IT outsourcing projects by using a quasi-Delphi approach. The analysis results indicated some inconsistencies in the risks perceived by the two parties: (1) the clients regarded (a) lack of vendor commitment to the project and (b) poor vendor selection criteria and process as top critical risks but the vendors didn't; and (2) on the other hand, the vendors perceived (a) unclear requirements and (b) lack of experience and expertise with project activities as significant risks but the clients didn't. Insights into how the client and the vendor perceive risks may help both parties determine how to partner and manage project risks collaboratively to succeed in outsourcing.

• Korean Management Science Review
• /
• v.28 no.2
• /
• pp.31-51
• /
• 2011

Many companies have considered IT outsourcing as one of strategic alternatives in order to rapidly respond to changing business environment and strengthen their competitiveness. Despite its strategic role, however, IT outsourcing project has been plagued by a high failure rate and difficulty in realizing the promised project performance because of its inappropriate risk management. This study examines the effect of IT project management risk factors on project performance. We propose that project risk management factors(communication, technology sharing, and project control) influence project performance(process performance and product performance). Based on the empirical results, theoretical and practical implications of the study are discussed along with its limitations.

• Journal of Korea Society of Industrial Information Systems
• /
• v.12 no.4
• /
• pp.153-163
• /
• 2007

Many organizations have been outsourcing not only simple tasks but Information Systems and business processes rapidly. IT outsourcing is considered as a critical strategy of businesses these days. Anyhow, many companies still have IT solution problems even though they have been outsourcing their IT department or functions. Moreover, many companies have difficulties when it comes to the selection a proper IT outsourcing service vendor. This study focused on evaluation methodology for small and medium sized organizational selection of IT outsourcing provider. This study's results is a presentation of an evaluation methodology using the AHP weighted value of the factors and the factors' variables. Small and medium sized organizational managers can refer to this study's result as an evaluation index and methodology at the beginning of their IT outsourcing project or for changing their vendors.

• International conference on construction engineering and project management
• /
• 2005.10a
• /
• pp.802-807
• /
• 2005

For linear projects, it has long been known that resource utilization is important in improving work efficiency. However, most existing scheduling techniques cannot satisfy the need for solving such issues. This paper presents an optimization model for solving linear scheduling problems involving resource assignment tasks. The proposed model adopts constraint programming (CP) as the searching algorithm for model formulation, and the proposed model is designed to optimize project total cost. Additionally, the concept of outsourcing resources is introduced here to improve project performance.