Proceedings of the Korean Operations and Management Science Society Conference
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2007.11a
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pp.256-263
/
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.
Information systems outsourcing takes diverse forms for various reasons. In order to analyze the diverse types of outsourcing relationships between outsourcing vendors and clients, two dimensions of outsourcing decisions proposed by Nam et. al. (1996), "the extent of substitution by vendors" and "the strategic impact of outsourced IS applications", are utilized as a framework. Four cells depicting types of outsourcing relationships are described based on the two dimensions. This paper studies the outsourcing experiences of four representative firms selected from 15 case study firms located in the U.S. within the framework of the proposed four types of outsourcing relationships. The movement of four firms in terms of its outsourcing decision within and across the cells is examined in order to derive the managerial guidelines over time.
This study examines control types of IS outsourcing project management focusing on two sets of questions: What control types are implemented during IS outsourcing projects? How various control types affect the performance of IS outsourcing projects. In order to meet these objectives, four control types are developed using typology-approach: dynamic, contract-oriented, partnership-oriented, and passive. And then four control types are identified based on taxonomy-approach using cluster analysis from 66 projects: dynamic, contract-oriented, passive, and middle. The result shows that the derived taxonomy-types are similar to the typology-types except partnership-oriented type. The result also indicates that dynamic and contract-oriented types are in the highest performance, while passive type is in the least performance.
This paper tests whether there are any differences in perceived effectiveness according to the range of outsourcing, and we tried to identify the reasons if any. By executing a field survey and T-test on composite success measure value of two types (integrated outsourcing type and backend outsourcing type), we testified that the perceived effectiveness of the two types in outsourcing was not different. Discussion fo the stududy result followed. First, 'integrated outsourcing type' does not generate very excellent performance. Second, so far the characteristics of 'integrated outsourcing type' such as strategic management of IS, activating end-user computing(EUC), and making the strategic partnership with vendors and so on have not been successfully utilized as expected.
Journal of the Korean Society of Clothing and Textiles
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v.29
no.11
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pp.1421-1431
/
2005
In this study, outsourcing behaviors of shoe manufacturing companies were studied and four types of outsourcing were generated based on qualitative data collected through in-depth interviews with 21 practitioners of shoe manufacturing companies. In results, shoe manufacturers are actively adopting outsourcings in production of raw materials(RM) as well as final products(FP). However, relatively less effect is being made on outsourcing in the field of product planning, international marketing and information technology. Four types of outsourcing include shoe manufacturers focusing on: 1) domestic production of RH and FP, 2) domestic production of RM and international production of FP, 3) domestic/international production of RM and FP, and 4) international production of RH and FP. These types were differed. from their manufacturing items, product planning skills and target markets of shoe manufacturing companies.
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 collected data revealed that corporate strategy rather than IT role is more significant factor affecting the intent for IT outsourcing decision. 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.
Purpose - This study focused on providing strategic findings that make significant sense for companies that are looking for a future outsourcing strategy. The study analyzes the results of outsourcing in the information logistics systems field and verifies the results through experimental study of the performance delivered by logistics outsourcing types. Research design, data, and methodology - The study sample was assembled based on a random sampling method used to extract the initial 451 companies from a list of Korean distributors, wholesalers, and retailers. Following that sample process, 423 companies were confirmed by verifying their e-mail address and contacts (telephone and fax numbers), and were selected as initial research subjects. We reduced that number to 331 companies for the survey sample through telephone interviews in advance with the 423 companies that were targeted, in order to verify whether they are in the field of outsourcing of information logistics systems. The period of the survey extended from November 10, 2013 to January 10, 2014. The number of collected surveys totaled 181. We reviewed the contents of the survey responses, and reduced the number of research subjects to 175. In this study, we used a standard analysis to investigate whether there is a difference in distribution results based on different types of outsourcing information in the logistics system field and, through T-verification, we investigated whether the difference between distribution results in each group resulting from that standard analysis is statistically significant. Results - These results show that there is a difference in distribution outcome, based upon type of distribution outsourcing. In addition, we determined that they are meaningful results by confirming that, for usability and to improve the capabilities of a third-party logistics service supplier, both the choice of reasonable outsourcing types and the enhancement of various types of alliances are very important success factors. Taken together these study results, with a goal of enhancing the distribution capabilities of a Korean distributor, can be implemented to enhance management results achievable by supplying an information logistics system in the form of strategic outsourcing rather than in the form of simple outsourcing. In addition, the outcomes of logistics distributors in Korea that are using outsourcing in the logistics information systems field show high performance results in commercial endeavors in the following order: competitive, pre-competitive, non-competitive, and pro-competitive. Conclusions - This study focused on providing strategic findings. However, in the case of outsourcing in the field of information logistics systems of Korean distributors, there has been a focus on simple outsourcing rather than on strategic outsourcing; furthermore, there has been a concentration on non-competitive forms instead of pro-competitive forms, which could achieve better distribution results. This discussion is presented in more detail in the analysis results of this study.
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.
The classical IT-Outsourcing studies have focused on the factors which a company decides for the IT-Outsourcing strategy. But the main concerns of recent researches are more about the Critical Success Factors determining the Success of the IT-Outsourcing service. Especially, the factors, which enhance the level of Success during and after the implementation of IT-Outsourcing services, are the main field of the recent researches. The study about the Partnership between Outsourcer and Outsourcee are also one of the most frequently researched themes. The result of these studies shows us that the "Reliability" and "Communication" are the main factors for the successful partnership. In this paper we try to find out how the IT-Outsourcing factors (independent variable) have influenced on the Success of IT-Outsourcing strategy (dependent variable) with 4 kinds of parameters. These moderate variables are the 4-types of Partnership by FORT, that is, "Support", "Reliance", "Alignment" and "Alliance".
This paper examines the associations of having a helper for domestic work or childcare and time spent on it by couples in South Korea. We use five waves of panel survey data from the Korean Longitudinal Survey of Women and Families (KLoWF), which allows longitudinal changes within couples over time that account for potential selection effects and unobserved heterogeneity among individuals. With fixed effects, we find outsourcing is associated with a decrease in wife's time spent on domestic work or childcare by 1 hour per week. However, the decrease is concentrated on the unemployed wife's time, but not employed wife's time. In addition, outsourcing is not a significant factor for husband's time and the husband's share of total contribution. This may be because wives are the main provider of domestic work and childcare in Korea regardless of employment status or having any helper. Due to unequal contributions between husband and wife, using outsourcing also neither alleviates the employed wife's contribution nor changes the husband's contribution. However, the results may be underestimated because there are more common and diverse types of outsourcing in a broad sense, such as going out for dinner, buying prepared food, and using dry cleaning services. We expect future studies to consider more broad types of outsourcing and examine how relations with the couple's time use at home are different by type.
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