• Title/Summary/Keyword: Vendor Risk

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Difference of Risk Management between Foreign and Domestic ERP : Empirical Approach with Korean Small & Medium-Sized Logistics Firms (외산 ERP와 국산 ERP를 도입한 국내 중소 물류기업간의 위험 관리 비교 연구)

  • Kim, Taeha;Nam, Seunghyeon
    • Journal of Information Technology Services
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    • v.19 no.6
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    • pp.119-130
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    • 2020
  • This work investigates how domestic or foreign ERP affects the relationship between risks associated ERP implementation and intention to adopt risk-mitigating options. We propose three risks such as ERP vendor risk, economic risk, and security risk should affect positively the intention to adopt the risk-mitigating options. To validate the impact of risks and to examine the difference between domestic and foreign ERP, we collected data from IT managers in small and medium sized logistics companies in South Korea using survey questionnaires. We validate the difference between domestic ERP and foreign ERP using multiple regression analyses. We find that IT managers using domestic ERP are willing to adopt risk-mitigating options for economic and security risk. In contrast, we find that IT managers using foreign ERP are willing to adopt risk-mitigating options for ERP-vendor risk. This work may provide IT managers in logistics industry a practical guideline of choosing either domestic or foreign ERP based on their risk preferences.

The Risk Factors of IT Outsourcing Decision in the Korean Firms (기업의 IT 아웃소싱 수행의사에 영향을 미치는 위험요인 분석)

  • Moon, Song-Chul;Ahn, Yeon-S.
    • 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.

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A Descriptive Study of IT Outsourcing Risk Factors in the Korean Company (국내기업 IT 아웃소싱 수행의사에 영향을 미치는 위험요인에 관한 연구)

  • Moon, Song-Chul
    • 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.

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A Descriptive Study of IT Outsourcing Risk Factors in the Korean Company (국내기업 IT 아웃소싱 수행의사에 영향을 미치는 위험요인에 관한 연구)

  • Moon, Song-Chul
    • 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.

Differences Between Client's and Supplier's receptions of IT Outsourcing Risks (IT아웃소싱 위험에 대한 고객과 공급업체와의 인식 차이)

  • Kim, Kyung-Ihl
    • Journal of Convergence for Information Technology
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    • v.8 no.5
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    • pp.237-242
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    • 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.

An Empirical Study on the Determinants of Information Systems Outsourcing (정보시스템 아웃소싱의 결정 요인에 관한 실증적 연구)

  • Lee, Min-Hwa
    • Asia pacific journal of information systems
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    • v.6 no.1
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    • pp.195-222
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    • 1996
  • Faced with the challenge of reducing costs and improving competitive position, firms have recognized outsourcing as an important information systems (IS) strategic option. It has not been understood clearly what determines IS outsourcing. Based on the IS literature and transaction cost economics, cost efficiency related factors were identified, and a questionnaire survey was conducted. The results based on 181 responses from the bank executives in U.S. revealed that vendor production cost advantage and transaction risk are significant predictors of degree of outsourcing and outsourcing preference for data processing services. Insufficiency of IS funds and information technology uncertainty were found to be not only positively associated with vendor production cost advantage, but also directly associated with outsourcing preference and degree of outsourcing. Firm size is, however, not significantly related to vendor production cost advantge and IS outsourcing.

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A Study on the Effect of Outsourcing for the Apparel Maker in Korea (우리나라 의류생산업체(衣類生産業體)의 아웃소싱 효과에 관(關)한 연구(硏究))

  • Kwon, Young-Ja
    • Journal of Fashion Business
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    • v.3 no.1
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    • pp.138-146
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    • 1999
  • For an enterprise to survive in extremely competitive world, it had better to down budget and resource of unimportant fields so that the enterprise can concentrate resources on the strong field. Nowadays in Korea, it is important to research outsourcing for strengthen the competitive power in apparel maker because of recent depression. The questionnaire was composed of 14 factors about outsourcing effect. The questionnaires were selected for finial analysis 67 apparel makers in Pusan and Seoul and data was analysed by using paired t-test by SPSS program. Almost of apparel makers (85.07%) has been outsourced the sewing process to contractor or vendor. Outsourcing in this case is marked lower effect than insourcing except reducing cost, economy of time and overcoming internal resources. This means that our outsourcing has been progressed with so many risk. If we have research the successful outsourcing and have a strategic vision and plan with vendor and product mutually beneficial relationship, we can share the risk and creating new business synergies through outsourcing.

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An Empirical Investigation of Vendor Readiness to Assess Offshore Software Maintenance Outsourcing Project

  • Ikram, Atif;Jalil, Masita Abdul;Ngah, Amir Bin;Khan, Ahmad Salman;Mahmood, Yasir
    • International Journal of Computer Science & Network Security
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    • v.22 no.3
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    • pp.229-235
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    • 2022
  • The process of correcting, upgrading, and improving software products after they have been handed over to the consumer is known as software maintenance. Offshore software maintenance outsourcing (OSMO) clients benefit from cost savings, time savings, and improved quality software through OSMO. In most circumstances, the OSMO vendor makes a lot of money but not in all the cases. Especially, when the OSMO project offer is not properly assessed. An efficient outsourcing contract might yield successful outcomes for outsourced projects. But before sending a detailed proposal to bid on the OSMO project the vendor must have to assess the client's project (business offer) requirements. The purpose of this study is to find out common trends within the assessment of a OSMO project. A case study approach along with semi-structured interviews from eight companies concluded ten common practices and several roles. Among these practices, four (code structure, requirements, communication barriers and required infrastructure) were consistent amongst the responses .The findings, limitations and future work are discussed.

A study on MRP/JIT system for vendor management

  • Lee, Soon-Yo;Yang, Seun-Mo
    • Korean Management Science Review
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    • v.5 no.2
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    • pp.57-70
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    • 1988
  • This paper examines both MRP and JIT for reducing WIP(Work In Process). The MRP/JIT system is suitable for multi-model, small-production manufacturing comparies in Korea because of the short delivery distance and low risk of accident during delivery. The objective of this paper is to manage vendors effectively by informing supply points and quantity of parts of vendors with MRP and JIT.

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A Descriptive Study of IT Outsourcing Risk Factors in the Korean Financial Industry (국내 금융업 IT 아웃소싱 수행의사에 영향을 미치는 위험요인에 관한 연구)

  • Lee, Moo-Seok;Lee, Jung-Hoon;Park, Jong-Sung
    • 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.