Skip to main content

Investigating Post-outsourcing Decisions: Using the Intellectual Capital View

  • Conference paper
  • First Online:
Building Sustainable Information Systems

Abstract

Over the last 30 years, IT outsourcing has become an enormous industry, and it continues to grow today. Over this period, outsourcing has matured and become widespread; this change has meant that for many managers, outsourcing questions have shifted from “Whether or not I should outsource?” to “What should I do when the outsourcing contract is about to expire/be terminated?” This study presents multiple case studies of the post-outsourcing decisions faced by two companies operating in Australia and begins the process of understanding this new class of outsourcing decisions. The study identifies the factors considered during post-outsourcing decisions and their interrelationship. The findings show that the factors affecting post-outsourcing decisions are of a combination of initial outsourcing decision factors and experience factors with the previous vendor. Several factors that were important in the initial outsourcing decision become much less relevant in the context of post-outsourcing decisions.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Chapter
USD 29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD 169.00
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD 219.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info
Hardcover Book
USD 219.99
Price excludes VAT (USA)
  • Durable hardcover edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

References

  1. Dibbern J, Goles T, Hirschheim R, Jayatilaka B (2004) Information systems outsourcing: a survey and analysis of the literature. ACM SIGMIS Database 35:6–102

    Article  Google Scholar 

  2. Cluster D (2005) Global IT outsourcing study. Diamond Cluster International, Chicago, IL

    Google Scholar 

  3. McLaughlin D, Peppard J (2006) IT backsourcing: from ‘make or buy’ to ‘bringing IT back in-house’. European Conference on Information Systems (ECIS), Goteborg, Sweden

    Google Scholar 

  4. Young A (2000) The future of outsourcing: thriving or surviving? Dataquest Service Trends

    Google Scholar 

  5. Whitten D, Leidner D (2006) Bringing IT back: an analysis of the decision to backsource or switch vendors. Decision Sci 37(4):605–621

    Article  Google Scholar 

  6. Barney HT, Low GC, Aurum A (2009) The morning after: what happens when outsourcing relationship ends. In: 17th international information systems development conference (ISD2008) Paphos, Cyprus, 25–27 Aug 2009

    Google Scholar 

  7. Wong SF (2008) Understanding IT backsourcing decision. Pacific Asia Conference on Information Systems (PACIS). Suzhou, China

    Google Scholar 

  8. Bhagwatwar A, Hackney R, Desouza KC (2011) Considerations for information systems “backsourcing”: a framework for knowledge re-integration. Inform Syst Manage 28:165–173

    Article  Google Scholar 

  9. Akoda J, Comyn-Wattiau I (2006) Developing a framework for analyzing IS/IT backsourcing. Information systems and collaboration: state of the art and perspectives. AIM, Luxembourg

    Google Scholar 

  10. Arnett KP, Jones MC (1994) Firms that choose outsourcing: a profile. Inform Manage 26:179–188

    Article  Google Scholar 

  11. McFarlan FW, Nolan RL (1995) How to manage an IT outsourcing alliance. Sloan Manage Rev 36:9–23

    Google Scholar 

  12. Fontes R (2000) The outsource option. Folio: The Magazine for Magazine Management 112–113

    Google Scholar 

  13. Gonzalez R, Gasco J, Llopis J (2010) Information systems outsourcing reasons and risks: a new assessment. Ind Manage Data Syst 110:284–303

    Google Scholar 

  14. Kremic T, Tukel OI, Rom WO (2006) Outsourcing decision support: a survey of benefits, risks, and decision factors. SCM 11:467–482

    Google Scholar 

  15. Berg B, Stylianou AC (2009) Factors considered when outsourcing an IS system: an empirical examination of the impacts of organizational size, strategy and the object of a decision. Eur J Inform Syst 18:235–248

    Article  Google Scholar 

  16. Youndt MA, Subramaniam M, Snell SA (2004) Intellectual capital profiles: an examination of investments and returns. J Manage Stud 41:335–361

    Article  Google Scholar 

  17. Sullivan PH (1999) Profiting from intellectual capital. J Knowledge Manage 3:132–143

    Article  Google Scholar 

  18. Barney S, Wohlin C, Aurum A (2009) Balancing software product investment In: 3rd International symposium on empirical software engineering and measurement, ESEM'09, Florida USA, 15–16 Oct 2009

    Google Scholar 

  19. Wong SF, Jaya P (2008) Drivers of IT backsourcing decision. Communications of the IBIMA, 2(14):102–108

    Google Scholar 

  20. Wang K (2011) Investigating post-outsourcing decisions: using the intellectual capital view. Honours thesis, School of Information Systems, Technology and Management, University of New South Wales, Sydney, 2052, Australia

    Google Scholar 

  21. Willcocks L, Hindle J, Feeny D, Lacity M (2004) IT and business process outsourcing: the knowledge potential. Inform Syst Manage 21:7–15

    Article  Google Scholar 

Download references

Author information

Authors and Affiliations

Authors

Corresponding author

Correspondence to Hamish T. Barney .

Editor information

Editors and Affiliations

Rights and permissions

Reprints and permissions

Copyright information

© 2013 Springer Science+Business Media, LLC

About this paper

Cite this paper

Barney, H.T., Aurum, A., Low, G.C., Wang, K. (2013). Investigating Post-outsourcing Decisions: Using the Intellectual Capital View. In: Linger, H., Fisher, J., Barnden, A., Barry, C., Lang, M., Schneider, C. (eds) Building Sustainable Information Systems. Springer, Boston, MA. https://doi.org/10.1007/978-1-4614-7540-8_5

Download citation

  • DOI: https://doi.org/10.1007/978-1-4614-7540-8_5

  • Published:

  • Publisher Name: Springer, Boston, MA

  • Print ISBN: 978-1-4614-7539-2

  • Online ISBN: 978-1-4614-7540-8

  • eBook Packages: Computer ScienceComputer Science (R0)

Publish with us

Policies and ethics