• Journal of the Korean Operations Research and Management Science Society
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• v.27 no.3
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• pp.21-40
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• 2002

Recently, IT outsourcing has become a very important management strategy which implements information systems in organizations. This paper investigates the risks and strategic recognition as a key factors affecting on the degree of IT outsourcing. Specifically the risks of IT outsourcing and its four components-risk of control, risk of economical, risk of technical, risk of relational - are examined to be a negative effect on the degree of outsourcing. And strategic recognition about outsourcing is examined how to affect en the risks and the degree of IT outsourcing. To empirically test these relationships, data ere gathered from senior IT managers in 86 corporations. Results of this study show that the degree of outsourcing is strongly influenced by risk of control, risk of economical, risk of relational. But risk of technical does not influence on the degree of outsourcing. And strategic recognition about outsourcing is found that is negative effect on the risks of IT outsourcing and positive effect on the degree of IT outsourcing. The results provide a good framework to minimize the risks for IT outsourcing success.

• The Journal of Information Systems
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• v.11 no.1
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• pp.1-28
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• 2002

Today, IT outsourcing has become a very important management strategy of implementing information systems in organizations. This paper investigates the risks and strategic recognition as a key factors effecting on the degree of outsourcing, Specifically the risks of outsourcing and its four components-control risk, economical risk, technical risk, relational risk-are examined to be a negative effect on the degree of outsourcing. And strategic recognition about outsourcing is examined to be a mediator factor between the risks and the degree of outsourcing. To empirically test these relationships, data are gathered from senior IT managers in 62 corporations. Results of this study show that the degree of outsourcing is strongly influenced by control risk, economical risk, relational risk. But technical risk does not influence on the degree of outsourcing. And strategic recognition about outsourcing is found that is mediator concern with the risks and the degree of outsourcing. The results indicate to provide a good framework to minimize the risks for IT outsourcing success.

• 한국IT서비스학회:학술대회논문집
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• 2009.05a
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• pp.287-292
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• 2009

The Outsourcing Industry has grown swift pace and evolved over time, and the Global IT Outsourcing market has shown signs of a steady growth. In the Korean company, however, IT Outsourcing is not active as that of the advanced countries and there is lack of literature to understand the characterristics of IT Outsourcing in the Korean company. This paper, therefore, analyze the outcomes surveying 65 compaanies in Korea to investigate how IT Outsourcing risk factors affects IT Outsourcing intention. Based on our literature reviews bassed on number of key articles, journals, and the focus group interviews, IT Outsourcing risk factors are proposed into four different domains: Transaction, Client, Vendor, Environment perspectives. It found that one factor(Vendor perspectives) is closely related to the IT Outsourcing intention of the Korean company. Finally, this paper analyzed the pros and cons of IT Outrcing offers a guide to the risk factors.

• Journal of Information Technology Services
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• v.8 no.3
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• pp.135-143
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• 2009

The Outsourcing Industry has grown swift pace and evolved over time, and the Global IT Outsourcing market has shown signs of a steady growth. In the Korean company, 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 Korean company. This paper, therefore, analyze the outcomes surveying 65 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, Environment perspectives. It found that one factor(Vendor perspectives) is closely related to the IT Outsourcing intention of the Korean company. Finally, this paper analyzed the pros and cons of IT Outrcing offers a guide to the risk factors.

• Proceedings of the Korea Society for Industrial Systems Conference
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• 2008.10b
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• pp.365-384
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• 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 Information Technology Services
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• v.7 no.1
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• pp.151-166
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• 2008

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.

• 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.

• 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 Digital Contents Society
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• v.10 no.2
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• pp.341-348
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• 2009

This paper analyzes the outcomes surveying 79 firms in Korea to investigate how Information Technology(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 factor s are proposed into three different domains: Transaction, Client, Vendor perspectives. As the statistic al analysis, it found that the risk factors related on the client, vendor perspectives, is closely related to the IT Outsourcing intention of the Korean firms. So It will be desirable to prepare and resist the risk factors of clients of themselves and IT service vendor's for the adopting and enlarging the IT outsourcing implementation.

• Journal of Digital Convergence
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• v.10 no.11
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• pp.115-125
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• 2012

In this study, The adoption factors of IT Outsourcing as a independent variables (business Factors, Outsourcing scope factors and risks factors), which were centered on services industries, were analyzed in order to identify the impacts of the results factors of IT outsourcing as a dependent variables. The main results of study have been summarized as follows. Firstly, among the business factors in the adoption of IT outsourcing, the industrial competitiveness and supports of CEO appeared to have positive impacts on the results of outsourcing adoption. However the environmental changes in technologics for services appeared not to have significant impacts. Secondly, the outsourcing scope factors such as the infra outsourcing, application outsourcing and total outsourcing appeared to have positive impacts on the results of IT outsourcing adoption. Thirdly, the control of risk factors such as risk in safety management, risk of increase, and risk of loss of autonomy appeared to have positive impacts on the results of IT outsourcing adoption.