Knowledge Management Research (지식경영연구)

The Knowledge Management Society of Korea (한국지식경영학회)
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The effect of domain understanding on IT outsourcing performance based on a learning model of IT outsourcing

IT아웃소싱 환경에서 도메인이해도가 성과에 미치는 영향: 조직학습, 지식이전 및 아웃소싱비율의 조절효과를 중심으로

  • 원유신 (연세대학교 정보대학원) ;
  • 이중정 (연세대학교 정보대학원) ;
  • 윤혜정 (이화여자대학교 국제사무학과)
  • Received : 2016.05.16
  • Accepted : 2016.06.16
  • Published : 2016.06.30
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Abstract

Owing to the current economic downturn, one of the most important goals of the organizations who are actively involved in Information Technology Outsourcing (ITO) is the cost efficiency. We focus on supplier firm's domain understanding to make the cost efficiency; therefore, we examine how the disadvantages from lower domain knowledges affect outsourcing performance moderated by outsourcing ratio and knowledge change environments. That is, if clients can endure disadvantage from service providers' lower domain knowledge, they can achieve cost efficiency by choosing lower domain knowledge suppliers with less expensive cost. To examine performance gap depending on the environments, we applied 'A Learning Model of IT Outsourcing' which is suggested by previous literature. As a result, we suggest five strategies for clients to contract with suppliers which have lower domain knowledge: (1) Prepare the strategy to endure disadvantages from the early stage. (2) Make the strategy depending on outsourcing ratio. (3) Knowledge transfer between organizations is important. (4) Make a short-term contract if they do not have good environments for organizational learning. (5) Client's knowledge change environments are more important than those of supplier's. Finally, we offer various implications for clients and suppliers in IT outsourcing.

Keywords

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