• Journal of Information Technology Services
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• v.4 no.2
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• pp.135-144
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• 2005

The plenty of successful cases of Multi-national companies has been realized benefits of offshore outsourcing in particular "cost savings" from offshore IT outsourcing services, such as call center, software development, IT support and maintenance etc. A few Korean companies recently started to make the feasibility study of offshore IT outsourcing to catch up with the global trend. The objective of this study is to present the feasibility of offshore IT outsourcing of Korean companies through the analysis of pilot projects results between Indian and Chinese companies. The analysis include key elementsof cost, productivity, quality, practical issues as well as Gartner's framework, "AD Sourcing Cost Model", composed of 7 model factors. The findings of this study are not limited to understand offshore IT outsourcing but also provide useful guidelines covering wide range from the theoretical framework of selecting suitable offshore partner.

• Journal of the Korea Academia-Industrial cooperation Society
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• v.8 no.4
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• pp.894-899
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• 2007

IT Outsourcing has been take place for ages and its range has expanded. The cases are also often take place more but there are a few criteria for making decision of IT outsourcing project. Companies tend to take IT outsourcing as a trend or to follow competitor's IT outsourcing project. This study suggests the criteria for IT outsourcing project before going into the project. The criteria ate to describe what function of the companies need to take outsourcing. Research model is driven by Statistics and AHP method. Also, variables are presented for clear making decision. This model allows the companies find proper IT outsourcing type and conveniences.

• Asia pacific journal of information systems
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• v.23 no.2
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• pp.41-66
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• 2013

IS outsourcing has an important meaning to the Korean SME's (Small and Medium Enterprises) which want to use the IS Services. The objective of this research is to manage IT risks occurred during IS outsourcing project process. This study tries to identify these risks using real option methodology. In order to perform this objective, this study set up the research model which is composed of two main concepts. The first one is the risk factors occurred during IS outsourcing project process: User's Risks, Supplier's Risks and Transaction's Risks. All of these risks are based on Transaction Cost Theory. The second one is the intention to get (or buy) Real Options to manage the risks. In the research model, two types of real option are included: option to abandon (put option) and option to defer (call option). This study uses questionnaires and statistics methodology (PLS) to analyze the hypotheses proposed in the research model. Compared with prior studies, this study is different in two ways. First, this study restricts the range of IT risks. Prior researches of IT Risk management in MIS area cover various range of IT risks, but this study focuses on the Korean SME's IT outsourcing risks on the basis of Transaction Cost Theory. This study tests the relationship between the risks and real option types. Second, this study tries to test the moderating effect of user's risks and supplier's risks on the relationship between transaction's risks and real option types. In IT outsourcing research area, almost studies focus on the direct relationships between IT risks and outsourcing success. But in reality, the co-relationship among IT risks may occur. There are some findings according to the research analysis. First, risks related with user's risks have strong causal relationships with the intention to get option to abandon (put) and option to defer. But risks related with supplier's risks have causal relationships only with option to abandon (put). Second, user's risks and supplier's risks have no moderating effect on the relationship between transaction's risks and real option types. According to the research results, this research have some important and interesting implications on the IS outsourcing business area. First, this study identifies the effective types of real option to minimize the risks occurred during the IT outsourcing projects. So IS outsourcing service users can manage (or minimize) effectively the risks, which occurred during outsourcing projects, using real options. Second, real option gives benefits to suppliers and users at the same time (i.e., win-win strategies between IS outsourcing service providers and users). Vendors (:IS outsourcing service providers) can offer users the real options which can minimize the occurrence of risks in time. "IN TIME" means that before the IS outsourcing project starts, vendors can offer users the opportunity to buy real options in appropriate prices to manage the possibility of the risks of IS outsourcing project. And users also have chance to minimize the IT outsourcing risks occurred during the project process using real options.

• Journal of the Korea Academia-Industrial cooperation Society
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• v.12 no.11
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• pp.4778-4787
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• 2011

The purpose of this study to develop IT Outsourcing service quality evaluation measurement have been frequently used to apply a model KS-SQI in the service industry. Primary needs fulfillment, unexpected benefits, reliability, individual empathy, positive assistance, accessibility and physical environment were selected as independent variable, they evaluate IT outsourcing service quality in order to verify their suitability as a tool for IT outsourcing service evaluation measurement, to analyze how that affects IT outsourcing satisfaction, and to investigate whether affecting IT outsourcing satisfaction on recontract intentions. To validate the hypothesis by path analysis conducted between variables using LISREL, primary needs fulfillment, reliability, individual empathy, positive assistance, accessibility and physical environment have significant effect on IT outsourcing satisfaction, but unexpected benefits don't have effect on IT outsourcing satisfaction, and IT outsourcing satisfaction showed significant effect on recontract intentions. Six Measurement tools has been proved to be suitable as a IT outsourcing service quality evaluation tool. Contribution of this study to evaluate the quality of IT outsourcing services, KS-SQI model developed by applying the measuring tool was achieved theoretical extensions and practical aspects of a recontract with the provider of IT outsourcing and IT outsourcing services for as a tool to assess the quality of can be used.

• Journal of Information Technology Services
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• v.1 no.1
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• pp.149-159
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• 2002

It is estimated that the world market size of the outsourcing of information system will be 780 billions in 2004, and that of ASP, one of outsourcing markets, will be 24 billions in 2005. The domestic outsourcing market also has 6 times grown in 2001 compared to the size in 2000. However, there have been only a few systematic researches about information system outsourcing and ASP in Korea. Though the importance of ASP has been recognized, no business model has been examined. So, this research was done to survey the outsourcing of information system and the meaning/present status of ASP, and to consider several factors to successfully introduce this service to companies. Especially, this research focused on ASP.

• Journal of Information Technology Applications and Management
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• v.12 no.2
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• pp.45-61
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• 2005

Recently, increasing attention has been paid to IT outsourcing and core competency of the corporation. Many companies are expected to focus on core competency rather than reduce IT cost from IT Outsourcing. But, by this time there are no a framework for evaluating intensity of core competency and maturity of IT outsourcing capability. This paper is conducted to provide a framework for evaluating intensity of core competency and maturity of IT outsourcing capability. This paper is to verify if the company's core competency and IT outsourcing capability have a significant influence on each other.

• Journal of Korea Society of Industrial Information Systems
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• v.12 no.4
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• pp.153-163
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• 2007

Many organizations have been outsourcing not only simple tasks but Information Systems and business processes rapidly. IT outsourcing is considered as a critical strategy of businesses these days. Anyhow, many companies still have IT solution problems even though they have been outsourcing their IT department or functions. Moreover, many companies have difficulties when it comes to the selection a proper IT outsourcing service vendor. This study focused on evaluation methodology for small and medium sized organizational selection of IT outsourcing provider. This study's results is a presentation of an evaluation methodology using the AHP weighted value of the factors and the factors' variables. Small and medium sized organizational managers can refer to this study's result as an evaluation index and methodology at the beginning of their IT outsourcing project or for changing their vendors.

• Journal of Digital Contents Society
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• v.10 no.2
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• pp.341-348
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• 2009

This paper analyzes the outcomes surveying 79 firms in Korea to investigate how Information Technology(IT) Outsourcing risk factors affects IT Outsourcing intention. Based on our literature reviews based on number of key articles, journals, and the focus group interviews, IT Outsourcing risk factor s are proposed into three different domains: Transaction, Client, Vendor perspectives. As the statistic al analysis, it found that the risk factors related on the client, vendor perspectives, is closely related to the IT Outsourcing intention of the Korean firms. So It will be desirable to prepare and resist the risk factors of clients of themselves and IT service vendor's for the adopting and enlarging the IT outsourcing implementation.

• Knowledge Management Research
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• v.17 no.2
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• pp.205-229
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• 2016

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.

• 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.