• Asia pacific journal of information systems
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• v.17 no.3
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• pp.131-146
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• 2007

Recently, the role of IT service providers has been enlarged from managing a single function or system to reconstructing entire information management processes in new ways to contribute to shareholder value across the enterprise. This movement toward extensive and complex outsourcing agreements has been driven by the assumption that outsourcing information technology functions is a reliable approach to maximizing resource productivity. 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 practice of focusing on the strategic aspect of outsourcing is referred to as strategic sourcing where the focus is capability sourcing, not procurement. Given the importance of the strategic outsourcing, however, to our knowledge, there is little empirical research on the relationship between the strategic outsourcing orientation and outsourcing performance. Moreover, there is little research on the factor that makes the strategic outsourcing effective. This study is designed to investigate the relationship between strategic IT outsourcing orientation and IT outsourcing performance and the process through which strategic IT outsourcing orientation influences outsourcing performance, Based on the framework of strategic orientation-performance and core competence based management, this study first identifies core competency orientation as a proper strategic orientation pertinent to IT outsourcing and IT outsourcing process management capability as the mediator to affect IT outsourcing performance. The proposed research model is then tested with a sample of 200 firms. The findings of this study may contribute to the literature in two ways. First, it draws on the strategic orientation - performance framework in developing its research model so that it can provide a new perspective to the well studied phenomena. This perspective allows practitioners and researchers to look at outsourcing from an angle that emphasizes the strategic decision making to outsource its IT functions. Second, by separating the concept of strategic orientation and outsourcing process management capability, this study provides practices with insight into how the strategic orientation can work effectively to achieve an expected result. In addition, the current study provides a basis for future studies that examine the factors affecting IT outsourcing performance with more controllable factors such as IT outsourcing process management capability rather than external hard-to-control factors including trust and relationship management. This study investigates the major factors that determine IT outsourcing success. Based on strategic orientation and core competency theories, we develop the proposed research model to investigate the relationship between core competency orientation and IT outsourcing performance and the mediating role of IT outsourcing process management capability on IT outsourcing performance. The model consists of two independent variables (core-competency-orientation and IT outsourcing process management capability), and two dependent variables (outsourced task complexity and IT outsourcing performance). Comprehensive data collection was conducted through an outsourcing association. The survey data were analyzed using a structural analysis method. IT outsourcing process management capability was found to mediate the effect of core competency orientation on both outsourced task complexity and IT outsourcing performance. Further analysis and findings are discussed.

• Asia pacific journal of information systems
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• v.13 no.4
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• pp.119-145
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• 2003

Recently, IT outsourcing has been one of the major concerns of many companies. This study proposes a model which composed the outsourcing planning and operational risks affecting the outsourcing performance. Especially, this study focused on the contractors perspective, because the outsourcing risk relative researches are recently performed on the service receivers perspective, contractors perspective researches were relatively lacked. The result of this study, outsourcing planning risks had not affected the outsourcing performance but it had positively affected the operational risks. And also, the outsourcing operational risks had negatively affected the outsourcing performance. For this reason, It is necessary to reduced planning risk induction for the outsourcing performance improvement. Because the planning risks positively affect the operational risks, it is necessary to reduced planning risk induction for the outsourcing performance improvement.

• Journal of Information Technology Applications and Management
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• v.11 no.3
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• pp.35-62
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• 2004

Recently, IT outsouricng has been one of the major concerns of many companies. This paper explores the relationship between information technology outsourcing risk factors and outsourcing performance. It is based upon a three-phase process utilizing IPO (Input-Process-Output) system. The first phase means the outsourcing planning risks t~at arise from overall environment of outsourcing, organizational refuse, and wrong contracts. The second phase implies outsourcing operational risks, which are occurred while out-sourcing perform and consist of organizational acceptances of outsourcing, partnership and hidden costs. The last phase is outsourcing performance based on four perspective of BSC(Blanced Scored Card). The survey was performed on the IT/IS firms, and the data was collected from 53 service receivers. The result of the analysis are as follows. First, Outsourcing planning risks positively affects the operational risks. Second, Outsourcing operational risks negatively affects the Outsourcing Performance.

• Journal of Distribution Research
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• v.4 no.1
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• pp.31-49
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• 1999

The present paper discusses the current status of outsourcing of service encounter in department stores. We attempt to find if there is any significant relationship between outsourcing motive and business performance. The 30 department stores under analysis show that they vary in the degree to which they appreciate the necessity of outsourcing and also the which they employ outsourcing. It is also found that firm size influences the portion of outsourcing. The two main motives of outsourcing seem to be (i) cost saving and (ⅱ) better customer satisfaction. We find that the latter plays a more important role. However, there seems to be no significant connection between outsourcing and performance and between motives of outsourcing and performance.

• Journal of Information Technology Services
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• v.2 no.1
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• pp.157-172
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• 2003

Despite the continual growth of IT outsourcing market, the outsourcing contracts are mostly short-term contracts. Because these short-term contracts need continual recontracts, the research on the factors that influence the outsourcing recontracts is needed. This research has been done to find out the factors of making the outsourcing recontracts successfully by stating the relationship between outsourcing recontract and the outsourcing performance factors. As a result of this research, customer factors and innovation factors are found to be influential factors on whether you make a recontract or not. And also the research have showed customer factors are major decision criteria on outsourcing recontracts.

• Knowledge Management Research
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• v.11 no.3
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• pp.31-45
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• 2010

IT outsourcing studies have centered on the separate effect of formal contract and relational trust on IT outsourcing performance. In addition, previous studies ignored the importance of the relational capability that combine the formal contract and partnership can be able to deliver IT outsourcing effects. In this paper, we propose an IT governance commitment as a mediated role between relational capability and IT outsourcing performance. We collected data from 143 client companies of IT outsourcing and analyzed it using the PLS method. Our findings are revealed as following: At first, relational capability significantly and directly influence IT governance commitment as well as indirectly through formal contract and partnership. Secondly, IT governance commitment mediate between relational capability and IT outsourcing effect, and in turn affect IT outsourcing performance. The results and implications are further discussed.

• 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.

• Asian Journal of Business Environment
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• v.8 no.3
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• pp.23-31
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• 2018

Purpose - The purpose of this study is to analyze the comparative financial performance of outsourcing and vertically integrated corporations from Footwear and Apparel industry. Research design, data, and methodology - Secondary data is collected from the published audited annual reports of the footwear and apparel corporations listed on stock exchanges globally. In the current study, 40 footwear firms have been opted that include 20 vertically integrated and 20 outsourcing firms. The sample is distributed into two groups based on threshold up-to 50 percent respectively outsourcing and vertically integrated companies. Sample independent t-test is applied to compare the financial performance of outsourcing and vertically integrated firms. Results - Based on the investigation of 10 years' data of financial ratio, the results of the study show that there is significant difference between outsourcing and vertical integration strategy on return on assets, return on equity while insignificant difference has found with profit margin. Conclusions - The findings of the current study indicates that there is significant difference between the financial performance of outsourcing and vertically integrated firms in terms of return on asset, return on equity and insignificant difference in terms of profit margin.

• Journal of Global Scholars of Marketing Science
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• v.12
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• pp.1-27
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• 2003

The purpose of this study is to verify what kind of influence do strategic factors (clarification of outsourcing goals, clarification of outsourcing scope, co-sourcing, management of supply businesses, and human resource participation) have on marketing performance factors (improvement of service quality, customer satisfaction, and improvement of employees' ability). Another purpose is to examine whether the influence of strategic factors of outsourcing on marketing performance differ depending on the outsourcing motives and the degree of human resources outsourcing. Hypothesis of influences of strategic factors of outsourcing on marketing performance is verified. The study shoes that co-sourcing has a significant influence on improvement of service quality, participation of human resources on improvement of service quality and employees' ability, and management of supply businesses on customer satisfaction and improvement of employees' ability. However, the study indicates that clarification of outsourcing goals and outsourcing scope do not affect variables in marketing performance.

• The Journal of Asian Finance, Economics and Business
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• v.7 no.8
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• pp.435-444
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• 2020

This study investigates the role of logistics capability and logistics outsourcing on the performance of manufacturing companies in Pakistan. It examines how logistics capability affects firm's performance, why outsourcing is essential and how firms benefited if they outsource the service rather than establishing their own logistics capability. This research is based on a survey using structured a questionnaire to collect the primary data. The target population is logistics specialists of manufacturing companies in Pakistan with head offices based on Karachi, that have their own logistics or outsource their logistics. The questionnaire has been distributed to 500 respondents in 113 manufacturing companies in Pakistan. Confirmatory factor analysis has been used as statistical techniques to check the factor loading of the components, and SEM (Structural Equation Model) is used to check the impact of logistics capability on firm's performance as well as the role of logistics outsourcing as a mediator. The findings of the research suggest logistics capability has positive impact on the performance of the manufacturing companies in Pakistan, and logistics capability has also an impact on logistics outsourcing. On the other hand, the study found that logistics outsourcing has no significant impact on the manufacturing companies in Pakistan.