• 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.

• Proceedings of the Korea Society for Industrial Systems Conference
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• 2008.10b
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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.

• 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.

• 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.

• 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.

• 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.

• 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.

• Culinary science and hospitality research
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• v.12 no.3 s.30
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• pp.17-31
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• 2006

There have not been the best method for improving the management system of an enterprise. Its management system must be changed according to new environment. Therefore, the food service industry had to accept outsourcing strategies to reduce cost and construct the core-capability of enterprise. In this respect, we studied the introduction and the satisfaction in outsourcing strategies for family restaurants, including a post of enterprise, decision on the supply-enterprises, contract preparation, cost of outsourcing, recontract items and outsourcing result estimation. The results of this study were as follows; First, 90.5% of managers for 7 family restaurants felt that outsourcing is needed. Second, the post of the outsourcing for 7 family restaurants was from 1 to 8; supply for raw food material, cleaning and equipment repair. The introduction of outsourcing for 7 family restaurants started in 1995 and it had constantly made progress up to 2003. Thirdly, the advantages of the outsourcing for 7 family restaurants were increase of benefit, improvement of controllable-power for family restaurants and improvement of employees' satisfaction. Fourthly, 42.9% of managers were satisfied and 4.8% of them were not satisfied. 36 to 40 year old vice-managers were very satisfied with the result of the outsourcing. Fifth, 90.5% of family restaurant managers found the outsourcing to be needed and especially managers in their late thirties realized the outsourcing.

• Journal of the Korean Society for information Management
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• v.24 no.3
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• pp.21-41
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• 2007

IT outsourcing has become a critical component of organizations, but improper expectations, ambiguous contracts and unclear goals frequently cause the failure of IT outsourcing. Especially we have to be concerned about the uncareful management of customer-supplier relationships based on a psychological contract perspective. This study focuses on the obligations of contractual parties for IT outsourcing which influence the outsourcing relationship(OR) and the successful performance of IT outsourcing(OP). The supplier obligations consist of the achievable infrastructure(S1) and capability(S2), and the customer obligations is composed of the acceptable environment(C1) and acceptability(C2) for IT outsourcing. This paper shows that the S1, S2, and C2 have an effect on the OR, the OR on the OP, and the S2 also on the OP directly. The four components of customer-supplier obligations are mutually related to each other. What is more, we must notice that the S2 has strong connections with the C2.

• Journal of Information Technology Services
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• v.7 no.1
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• pp.167-193
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• 2008

Clients' outsourcing strategies noted in the IT outsourcing literature generate varying levels of client dependence on vendors. This study investigates clients' efforts to mitigate such dependence by utilizing multiple vendors. We use the theoretical lenses of resource dependency and opportunism to study this phenomenon. Specifically. we consider degree of outsourcing, duration of contract, and externalization of control as strategic choices that engender vulnerabilities that clients seek to offset by using multiple vendors. This study then considers the basis of the outsourcing relationships, clients' satisfaction with the relationships. and clients' IT workforce size as conditions that induce clients' concerns about vendor opportunism. This study argues that these conditions can exacerbate clients' experience of vulnerability. further encouraging clients' use of multiple vendors. The research model developed is tested in a survey of firms in South Korea. Results suggest a strong impact of outsourcing strategic choices on the number of vendors used by clients. The anticipated moderating effects of opportunism were only weakly supported by the data though. Theoretical and practical implications of the results are considered and suggestions for future research are offered.