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

• Journal of Information Technology Applications and Management
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• v.14 no.1
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• pp.1-20
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• 2007

IT outsourcing becomes one of the important shills for managing diverse and complex information systems, SIA is considered as an one of the success factors for the successful outsourcing management. Since it helps to establish common goal and provides better visibility of trends and performance, the SLA process must go beyond mere measurement to include a methodology for the ongoing management of service levels, and for the continuous improvement of service activities, functions and processes. Despite SLA is one of the most important skills for the successful outsourcing, few studies have been conducted for academic as well as practical purpose. For this reason, The objective of this study is to develop an SLA's maturity model and empirically demonstrate how SLA's maturity level affects its Performance through SLA's maturity model. The major contributions of this study are in two areas. This study contributes to academicians as well as practitioners. First, from the academic perspectives this study tries investigating the maturity level of the SLA based on empirical data. Second, practitioners can self-test their firms' maturity level using the proposed model. The results of this study show that the SLA's maturity level affected positively SLA's performance. It is founded that the SLA's maturity level had a significant impact on SLA's performance.

• Asia pacific journal of information systems
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• v.23 no.2
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• pp.21-39
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• 2013

As the utilization of information technology and the turbulence of technological change increase in organizations, the adoption of IT outsourcing also grows to manage IT resource more effectively and efficiently. In this new way of IT management technique, service level management(SLM) process becomes critical to derive success from the outsourcing in the view of end users in organization. Even though much of the research on service level management or agreement have been done during last decades, the performance of the service level management process have not been evaluated in terms of final objectives of the management efforts or success from the view of end-users. This study explores the relationship between SLM maturity and IT outsourcing success from the users' point of view by a analytical case study in four client organizations under an IT outsourcing vendor, which is a member company of a major Korean conglomerate. For setting up a model for the analysis, previous researches on service level management process maturity and information systems success are reviewed. In particular, information systems success from users' point of view are reviewed based the DeLone and McLean's study, which is argued and accepted as a comprehensively tested model of information systems success currently. The model proposed in this study argues that SLM process maturity influences information systems success, which is evaluated in terms of information quality, systems quality, service quality, and net effect proposed by DeLone and McLean. SLM process maturity can be measured in planning process, implementation process and operation and evaluation process. Instruments for measuring the factors in the proposed constructs of information systems success and SL management process maturity were collected from previous researches and evaluated for securing reliability and validity, utilizing appropriate statistical methods and pilot tests before exploring the case study. Four cases from four different companies under one vendor company were utilized for the analysis. All of the cases had been contracted in SLA(Service Level Agreement) and had implemented ITIL(IT Infrastructure Library), Six Sigma and BSC(Balanced Scored Card) methods since last several years, which means that all the client organizations pursued concerted efforts to acquire quality services from IT outsourcing from the organization and users' point of view. For comparing the differences among the four organizations in IT out-sourcing sucess, T-test and non-parametric analysis have been applied on the data set collected from the organization using survey instruments. The process maturities of planning and implementation phases of SLM are found not to influence on any dimensions of information systems success from users' point of view. It was found that the SLM maturity in the phase of operations and evaluation could influence systems quality only from users' view. This result seems to be quite against the arguments in IT outsourcing practices in the fields, which emphasize usually the importance of planning and implementation processes upfront in IT outsourcing projects. According to after-the-fact observation by an expert in an organization participating in the study, their needs and motivations for outsourcing contracts had been quite familiar already to the vendors as long-term partners under a same conglomerate, so that the maturity in the phases of planning and implementation seems not to be differentiating factors for the success of IT outsourcing. This study will be the foundation for the future research in the area of IT outsourcing management and success, in particular in the service level management. And also, it could guide managers in practice in IT outsourcing management to focus on service level management process in operation and evaluation stage especially for long-term outsourcing contracts under very unique context like Korean IT outsourcing projects. This study has some limitations in generalization because the sample size is small and the context itself is confined in an unique environment. For future exploration, survey based research could be designed and implemented.

• Journal of Information Technology Applications and Management
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• v.12 no.2
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• pp.45-61
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• 2005

Recently, increasing attention has been paid to IT outsourcing and core competency of the corporation. Many companies are expected to focus on core competency rather than reduce IT cost from IT Outsourcing. But, by this time there are no a framework for evaluating intensity of core competency and maturity of IT outsourcing capability. This paper is conducted to provide a framework for evaluating intensity of core competency and maturity of IT outsourcing capability. This paper is to verify if the company's core competency and IT outsourcing capability have a significant influence on each other.

• Proceedings of the Korean Operations and Management Science Society Conference
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• 2007.11a
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• pp.256-263
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• 2007

Corporate managers look at IT outsourcing as long-term strategic choices not as short-term tactical ones, and maximizing the effect that IT outsourcing brings about is the main concern to them. Emerging different types of IT outsourcing and their effects on the corporate business decisions necessitate the research on this subject. According to previous researches, the Intent for IT outsourcing is categorized as IS Improvement, Business Impact, and Commercial Exploitation. The decison factors for these IT outsourcing include corporate strategy types, IT role, and interaction between these two. Firm size and IT maturity are selected as moderating factors to add the credibility to the research of the effect of IT outsourcing decision making. Analyzing IT outsourcing data collected from 61 large-size and mid-size domestic firms revealed that corporate strategy rather than IT role is more significant factor affecting the intent for IT outsourcing decision. That means the decision of outsourcing intent is affected by corporate strategy types. Defenders(as in corporate strategy types) tend to use IT outsourcing more as a means to improve information systems, compared to analyzers and reactors. Prospectors tend to use IT outsourcing more as a commercial exploitation, compared to analyzers and reactors. These outcomes prove that corporate strategy characteristics reflect outsourcing intent. There were previous researches that showed outsourcing decision depends on IT role however the hypothesis was rejected that IT role determines outsourcing intent. It was also rejected that the interaction between corporate strategy types and IT role determines outsourcing intent. Corporate decision makers should first analyze corporate strategy, and reflect it on the outsourcing intent when they make IT outsourcing decisions. Only the precise defining of IT outsourcing intent will lower the risk and increase the possibility of success.

• Informatization Policy
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• v.17 no.1
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• pp.102-119
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• 2010

This study explores the effects of standardized management processes such as COBIT and ITIL on the success of IT outsourcing by utilizing an exploratory case study. The exploratory model includes the maturity of ITIL and COBIT process and success of IT outsourcing. For each construct of the model, several measures are developed from preceding researches and confirmed in the context of the cases utilized for this study. It is found that the maturity of the processes supported by ITIL and COBIT is critical for the success of IT outsourcing in this study. This results confirm the current popularity of the standardized process adopted in practice and also require further research endeavors in this control or management process in the future. It should include any other processes and related activities to the control process in the relationship of IT outsourcing.

• Journal of Digital Convergence
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• v.4 no.1
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• pp.93-109
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• 2006

Several studies have investigated the success of ASP from various perspectives. This study, thus, investigated factors affecting ASP effectiveness in various literature relevant ASP and outsourcing. By applying the basic ideas of the IS success model, this study proposes a research model of the factors affecting the success of ASP, in term of internal factors(Top Management Involvement, User Participation, Size of Organization, IS Maturity) and Reliability factors(Transaction Reliability, After-Sale Reliability, System Reliability, Security). The proposed model is expected to provide a guideline to researchers and practitioners extend their understanding of the success factors of the ASP effectiveness.

• Journal of Information Technology Applications and Management
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• v.15 no.3
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• pp.111-125
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• 2008

The management of organizational Human Resource is steadily shifting away from pure hierarchical to market mechanisms that involve external vendors. HR Business Process Outsourcing (BPO) has recently emerged as a significant administrative innovation in an organization's strategy. Our paper attempts to understand firm-specific factors influencing the scope of HR BPO needs. Study results show that IT maturity and firm size are influential factors on the scope of HR BPO needs. We hope that our attempt at empirically examining and predicting this emergent phenomenon will stimulate others to look at this important strategic challenge facing firms from a theoretical perspective. Such research initiatives will allow us not only to better understand this complex phenomenon, but also to drive useful management prescriptions grounded on theory-based research.

• The Journal of Information Systems
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• v.15 no.2
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• pp.227-245
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• 2006

Several studies have investigated the success of ASP(Application Service Provider) from various perspectives. This study, thus, investigated factors affecting ASP effectiveness in various literature relevant ASP and outsourcing. By applying the basic ideas of the IS success model, this study proposes a research model of the factors affecting the success of ASP, in term of internal factors(Top Management Involvement, User Participation, IS Maturity) and external factors(Transaction Reliability, Service Reliability, System Trust Security). The proposed model is expected to help both researchers and practitioners extend their understanding of the success factors of the ASP effectiveness.

• Information Systems Review
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• v.9 no.2
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• pp.189-207
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• 2007

The importance of IT service management to improve the effectiveness and efficiency of IT outsourcing practices or performance has been emphasized in the fields. Accordingly, several methodologies of IT service management have been adopted in a fashion. This case based research tries to analyze the effects of ITIL-based IT service management practice in a company on IT outsourcing performance. The case analysis shows that ITIL-based service management influences systems quality, information quality, and service quality in direct manner. But it does not influence systems use and systems satisfaction in a meaningful way. This study would help IT service managers construct IT service environment which improves the performance of IT outsourcing service delivery and also researchers set up research proposition in a concise way in the future.