• Title, Summary, Keyword: IT Outsourcing

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System Dynamics Approach to IT/IS Outsourcing in the context of the Perspective of Knowledge Management

  • Yeon, Seong-Jun
    • Korean System Dynamics Review
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    • v.7 no.1
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    • pp.229-243
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    • 2006
  • In recent years, due to a lack of expertise, many organizations have been devoting large portions of their budget to outsourcing. Outsourcing is now often regarded as a solution for all problems. However, the lack of clear understanding of the effectiveness of outsourcing could lead to many problems in organizations even though outsourcing is known to provide advantages to some organizations. Moreover, outsourcing could have a negative effect on knowledge management in some aspects. There have been and continue to be numerous studies into outsourcing; however, their findings primarily relate to cost reduction in short-term. Regardless of increasing demands on outsourcing and the importance of knowledge management, little research has focused on decision-making structure from knowledge management perspective. This paper attempted to quickly identify promising movements with potentially significant effects on IT/IS outsourcing.

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백화점의 인적서비스 아웃소싱(outsourcing) 동기와 성과에 관한 연구

  • 이철우;김창호
    • Journal of Distribution Research
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    • v.4 no.1
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    • pp.31-49
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    • 1999
  • The present paper discusses the current status of outsourcing of service encounter in department stores. We attempt to find if there is any significant relationship between outsourcing motive and business performance. The 30 department stores under analysis show that they vary in the degree to which they appreciate the necessity of outsourcing and also the which they employ outsourcing. It is also found that firm size influences the portion of outsourcing. The two main motives of outsourcing seem to be (i) cost saving and (ⅱ) better customer satisfaction. We find that the latter plays a more important role. However, there seems to be no significant connection between outsourcing and performance and between motives of outsourcing and performance.

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A Study on the Relationship between Firm Characteristics and Information System Outsourcing Cost Estimation Model Preference (기업의 특성과 정보시스템 비용산정모델 선호도의 관계연구)

  • 박진수;김현수
    • Journal of Information Technology Applications and Management
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    • v.10 no.3
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    • pp.75-92
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    • 2003
  • In order to investigate IS(Information Systems) outsourcing cost estimation model preference of firms, this study reviews previous literatures on outsourcing and firm characteristics. The relationships between firm characteristics and IS outsourcing cost estimation model preference are analysed. Four major factors of firms characteristics are found and classified. IS outsourcing cost estimation model with SLA are found to have a strong relationship with organizational culture. Future research will be needed to verify the result of this exploratory study.

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An Empirical Study on the Control Mechanism of ASP Outsourcing Risks using Real Option Approach (ASP Outsourcing 위험의 효율적인 통제를 위한 실물옵션 적용 가능성에 대한 연구)

  • Nam, Seung-Hyeon;Yang, Hui-Dong
    • Proceedings of the Korea Society for Industrial Systems Conference
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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.

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Improving Outsourced ISD Project Performance : Focusing on Conflict and Conflict Resolution Facilitation (아웃소싱을 통한 정보시스템 개발성과 향상방안 : 갈등 및 갈등해결 촉진을 중심으로)

  • Cho, Dong-Hwan;Lee, Ho-Geun;Lee, Choong-Cheong
    • Journal of the Korean Operations Research and Management Science Society
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    • v.33 no.1
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    • pp.71-105
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    • 2008
  • Various stakeholders within and outside of the organization are involved and participate in the outsourced IS development. As their interests and goals are different conflict arises in the process of their interaction, and it is an important factor affecting outsourcing success. The study focuses on the conflict between client users and vendor, i.e. main conflict in the outsourcing project, and examines the relationship of conflict with project success, the antecedents of conflict, and investigates the effectiveness of conflict resolution facilitation. An integrated conceptual model is developed grounded on is outsourcing, IS development, project management, and organizational behavior literature. Nine specific hypotheses on the conflict in outsourcing projects are proposed, and data collection and analysis are performed with 214 ISD outsourcing projects. Results indicated that the conflict between client users and vendor in outsourcing projects was found to have negative effects on project success. Main causes affecting conflict were examined, and relative influences of these causes were clarified. Recently internal IT personnel have been faced their role change with the increase of outsourcing, and the importance of their conflict resolution facilitation was highlighted.

A Case Study - IT Outsourcing of the Korea Development Bank (산업은행: 금융 IT 아웃소싱 - 공동협력으로 안전한 문을 연다)

  • Kang, Ju-Young;Lee, Jae-Kyu
    • Information Systems Review
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    • v.7 no.2
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    • pp.229-255
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    • 2005
  • The Korea Development Bank promoted a total outsourcing for IT operation in 1999 for the first time in the banking industry. The Korea Development Bank became the center of public attention because the most banks were unwilling to take an outsourcing with external sources for the reason of financial operation accidents, securities, and threats of strikes. After the introduction of the total IT outsourcing, the Korea Development Bank has continuously diagnosed the problems of the IT outsourcing and adopted various proper complements for the enhancement of the IT outsourcing. As the result of the enhancement, the IT outsourcing of the Korea Development Bank marched into the joint liability operation period after going through the outsourcing operation period and the co-operation period. The joint liability operation which is the most leading outsourcing system which is adopted by the Korea Development Bank for the first time in the banking industry. Through the joint liability operation, the Korea Development Bank could accept the most up-to-date IT, concentrate internal manpower on the core capability, and secure flexibility of manpower. Also, the bank changed the relationship between the bank and the external sources from the one-sided relationship between a producers and a consumer to the joint liability relationship on which both sides are responsible for the operation, and could integrate the internal capacity with the professional know-how of the external IT outsourcing company. In this paper, we testified the soundness and validity for the worries of banks about the total IT outsourcing with external sources. And, we arranged the advantages and outcomes of the total IT outsourcing with external sources compared to the IT outsourcing with internal sources. Moreover, we expect that we can improve the closed financial IT outsourcing industry structure and raise the world competitive power of domestic IT outsourcing companies by correcting wrong ideas on the IT outsourcing with external sources.

The Beginning of New Change: Maeil's Outsourcing (새로운 변화의 시작, 아웃소싱-매일유업 사례)

  • Moon, Yong-Eun;Han, Sang-Cheol;Hong, Yu-Jin
    • Information Systems Review
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    • v.7 no.2
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    • pp.257-276
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    • 2005
  • The most distinctive characteristic in Maeil's outsourcing strategy was the rapid decision process done by CEO. At first, Maeil made a contract with a outsourcing vendor based on 50% investment for 5 years. However, 3 years later Maeil changed their outsourcing strategy from 10% share to 100% outsourcing. This is for the efficiency improvement and cost reduction. Also, Maeil organized separate TFT which could control IS quality. This TFT reviewed the feasibility of requirement analysis and IS planning process. Through this cooperation between TFT and the outsourcing vendor, Maeil could get the stable IT development and operation. During last 5 years, Maeil achieved great performance in the area of IT development and operation from the outsourcing. The present issue related to outsourcing strategy is whether Maeil will continue the current contract or change the vendor due to the anxiety of becoming a captive customer.

The Effects of IT Human Capability on Knowledge Transfer in Information Systems Outsourcing (정보기술 인적 역량이 지식 이전에 미치는 영향에 관한 연구: 정보시스템 아웃소싱 상황을 중심으로)

  • Park, Joo-Yeon;Kim, Joon-S.;Im, Kun-Shin
    • Asia pacific journal of information systems
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    • v.16 no.2
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    • pp.85-110
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    • 2006
  • The objective of this research is to identify the process of knowledge transfer and to examine the effect of IT human capability on knowledge transfer in information systems outsourcing. Through a field survey, it is found that clients' IT human capability significantly affects on cooperative learning with vendors and knowledge transfer from vendors to clients. The survey also shows that clients' trust with vendors indirectly enhances the knowledge transfer by increasing the cooperative learning. This study provides a solution of knowledge transfer problem in information systems outsourcing. Also it brings out issues that can be accrued in the outsourcing situation, such as clients' dependency on vendors and knowledge asymmetries developed in favor of the vendors. These issues should be topics for future research on information systems outsourcing.

The Study on the Inter-Organizational Control of IS Outsourcing Relationship : Building Theory from Case Study (정보시스템 아웃소싱 관계에서 조직간 통제에 관한 연구 : 이론구축을 위한 사례연구)

  • Lee, Sang Kon
    • Journal of Information Technology Services
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    • v.3 no.1
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    • pp.127-146
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    • 2004
  • Recently, Information systems (IS) outsourcing has been becoming a viable strategic alternative in the management of information systems. Accordingly, the demand of research in practice has been changed from how to decide IS outsourcing to how to manage IS outsourcing. However, there is little known about the management of IS outsourcing in existing literature. Moreover, the existing studies suggest conflicting solutions in accordance with their own perspectives : competitive relationship vs. cooperative relationship. The purpose of this study is to address this conflicting result, and consequently to enhance an understanding of IS outsourcing management by introducing the concept of interorganizational control. To meet this purpose, this study adopts Lee(2003)'s integrative model of IS outsourcing management based on the existing literature from different management disciplines and different perspectives, and then conducts four case studies. The result reveals that users, as well as IS manager, play a critical role in controlling IS outsourcing. Moreover, they implement a portfolio of control modes including both informal and formal modes. The result also suggests that the choice of particular control mechanism depends on client, supplier, task, and relationship characteristics.

Research Topics Based on Korea IT Outsourcing Service Industry (한국 IT 아웃소싱서비스산업 구조 분석을 통한 연구 주제)

  • An, Joon-M.
    • Journal of Information Technology Services
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    • v.1 no.1
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    • pp.161-168
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    • 2002
  • Many problems in IT outsourcing service industry of Korea are rooted in the idiosyncratic structure of the industry. This structure causes the unique characteristics of service level management, service delivery methodology, and contracts. This study looks into the status of the industry, vendors, and markets of IT outsourcing and proposes some of relevant research topics of each area respectively.