Taxonomy development and assessment of global information technology outsourcing decisions
Abstract
Purpose
This paper seeks to provide taxonomy and assessment methodologies for executives of global conglomerates with a selection of variables which can help them evaluate outsourcing decisions.
Design/methodology/approach
A range of established theories, which addressed outsourcing decisions, are identified. The major determinants of global outsourcing were then formulated into an integrated model. Each of the variables identified was validated using multiple theories. Finally, a weighted score index was used to demonstrate how the variables can be used to evaluate outsourcing decisions.
Findings
It provides an overview of outsourcing theories about the variety of major reasons and their associated determinants as well as attributes that are relevant to decision‐makers. It showed that the individual theories can be integrated into a global taxonomy. This taxonomy can be assessed using a weighted‐index because the inputs and computation processes contain realistic qualitative and quantitative information.
Research limitations/implications
It is an assessment methodology that requires input and judgment from a variety of experts. Persons having such expertise may be fairly costly and difficult to find.
Practical implications
A very simple, yet comprehensive, and useful taxonomy for executives making outsourcing decisions. The assessment index is a proven methodology that is used by business consultants for a variety of related applications involving decision choices.
Originality/value
This paper fulfills the need for a more comprehensive view and a systematic approach to the assessment of outsourcing decisions. The index of attributes identified and the evaluation technique proposed are a practical approach.
Keywords
Citation
Koong, K.S., Liu, L.C. and Jian Wang, Y. (2007), "Taxonomy development and assessment of global information technology outsourcing decisions", Industrial Management & Data Systems, Vol. 107 No. 3, pp. 397-414. https://doi.org/10.1108/02635570710734299
Publisher
:Emerald Group Publishing Limited
Copyright © 2007, Emerald Group Publishing Limited