• Title/Summary/Keyword: Outsourcing Success

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A Study of Success Factors for Information System Outsourcing (정보시스템 아웃소싱 성공 요인에 관한 연구)

  • Cho, Yong-Kil;Chung, In-Soo
    • Journal of the Korea Academia-Industrial cooperation Society
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    • v.9 no.5
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    • pp.1414-1421
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    • 2008
  • The information system outsourcing has been received considerable attentions in recent years. Despite it great potential, the execution of the outsourcing need to be guided to avoid any possible failure. This study shows how the difference in the resources and capabilities between the customer company and the service provider affects the quality of partnership, finally the success of information system outsourcing. From the hypotheses testings, it is found that If the financial ability of the customer company is higher than that of the service provider, the partnership is good. In addition, If the IT resource of the service provider is higher than that of the customer company, the qualify of partnership is high. As a conclusion, the partnership quality has an effects on the success of outsourcing. Especially, the trust has an greater effect on the success of outsourcing than cooperation does.

The Impact of Service Level Management(SLM) Process Maturity on Information Systems Success in Total Outsourcing: An Analytical Case Study (토털 아웃소싱 환경 하에서 IT서비스 수준관리(Service Level Management) 프로세스 성숙도가 정보시스템 성공에 미치는 영향에 관한 분석적 사례연구)

  • Cho, Geun Su;An, Joon Mo;Min, Hyoung Jin
    • Asia pacific journal of information systems
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    • v.23 no.2
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    • pp.21-39
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    • 2013
  • As the utilization of information technology and the turbulence of technological change increase in organizations, the adoption of IT outsourcing also grows to manage IT resource more effectively and efficiently. In this new way of IT management technique, service level management(SLM) process becomes critical to derive success from the outsourcing in the view of end users in organization. Even though much of the research on service level management or agreement have been done during last decades, the performance of the service level management process have not been evaluated in terms of final objectives of the management efforts or success from the view of end-users. This study explores the relationship between SLM maturity and IT outsourcing success from the users' point of view by a analytical case study in four client organizations under an IT outsourcing vendor, which is a member company of a major Korean conglomerate. For setting up a model for the analysis, previous researches on service level management process maturity and information systems success are reviewed. In particular, information systems success from users' point of view are reviewed based the DeLone and McLean's study, which is argued and accepted as a comprehensively tested model of information systems success currently. The model proposed in this study argues that SLM process maturity influences information systems success, which is evaluated in terms of information quality, systems quality, service quality, and net effect proposed by DeLone and McLean. SLM process maturity can be measured in planning process, implementation process and operation and evaluation process. Instruments for measuring the factors in the proposed constructs of information systems success and SL management process maturity were collected from previous researches and evaluated for securing reliability and validity, utilizing appropriate statistical methods and pilot tests before exploring the case study. Four cases from four different companies under one vendor company were utilized for the analysis. All of the cases had been contracted in SLA(Service Level Agreement) and had implemented ITIL(IT Infrastructure Library), Six Sigma and BSC(Balanced Scored Card) methods since last several years, which means that all the client organizations pursued concerted efforts to acquire quality services from IT outsourcing from the organization and users' point of view. For comparing the differences among the four organizations in IT out-sourcing sucess, T-test and non-parametric analysis have been applied on the data set collected from the organization using survey instruments. The process maturities of planning and implementation phases of SLM are found not to influence on any dimensions of information systems success from users' point of view. It was found that the SLM maturity in the phase of operations and evaluation could influence systems quality only from users' view. This result seems to be quite against the arguments in IT outsourcing practices in the fields, which emphasize usually the importance of planning and implementation processes upfront in IT outsourcing projects. According to after-the-fact observation by an expert in an organization participating in the study, their needs and motivations for outsourcing contracts had been quite familiar already to the vendors as long-term partners under a same conglomerate, so that the maturity in the phases of planning and implementation seems not to be differentiating factors for the success of IT outsourcing. This study will be the foundation for the future research in the area of IT outsourcing management and success, in particular in the service level management. And also, it could guide managers in practice in IT outsourcing management to focus on service level management process in operation and evaluation stage especially for long-term outsourcing contracts under very unique context like Korean IT outsourcing projects. This study has some limitations in generalization because the sample size is small and the context itself is confined in an unique environment. For future exploration, survey based research could be designed and implemented.

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The Effect of Conflict Resolution Methods on the Implementation of IS Outsourcing

  • Chung, Young-Soo
    • Proceedings of the Korea Society for Industrial Systems Conference
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    • 1998.10a
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    • pp.479-488
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    • 1998
  • This study investigates the effect of conflict resolution methods on the IS outsourcing performance. A survey of 207 IS oursourcing relationship of U.S. firms indicates that(1) constructive/proactive methods, such as joint problem solving, is positively related to the success of IS outsourcing relationships, and that (2) destructive/passive methods, such as persuasion, smoothing/avoiding, domination, and use of harsh words are negatively related to the success of IS outsourcing relationships. The findings suggest that the manner in which conflict is resolved can be productive or destructive for the IS outsourcing performance.

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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    • 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.

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An Empirical Study on the Importance of Mindfulness Practice in the Success of Information Systems Outsourcing (정보시스템 아웃소싱 성공에 있어서 마음챙김 실천의 중요성에 대한 실증연구)

  • Lee, Jong Man
    • The Journal of the Korea Contents Association
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    • v.13 no.12
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    • pp.412-421
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    • 2013
  • The purpose of this paper is to recognize an importance of its practice by rightly understanding mindfulness, and to find one method to solve the success of Information Systems outsourcing through mindfulness practice. To do this, this paper proposes and analyzes a theoretical model consisting of factors such as contract completion, relationship strength, mindfulness practice, trust level and Information Systems outsourcing success. Data was collected using the survey method, and was analyzed using the PLS method. The results of this empirical study are summarized as followings. First, mindfulness practice has positive effects on Information Systems outsourcing success as well as trust level. Second, both contract completion and relationship strength have positive effects on mindfulness practice. The findings will provide basic data for understanding the role of mindfulness practice in Information Systems outsourcing success.

A Study on Critical Success Factors in Implementing Military Hospital Information Systems (군 병원정보시스템 구현의 중요성공요인 분석 연구)

  • Kim, Jun-Woo;Kim, Seoung-Ki;Jeon, Dong-Jin
    • Asia pacific journal of information systems
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    • v.15 no.1
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    • pp.81-113
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    • 2005
  • IT has affected the hospital management via information systems and multimedia systems such as hospital information systems(HIS) and Order Communication System(OCS). A large number of researches have been done on the topic of success factors of information systems implementation, but a few on the topics of hospital information systems. Thus in this study, the success factors of the military hospital information systems implementation was analysed. To this end, a number of previous researches were reviewed and about 71 items of success factors were deduced. For doing empirical analysis, a questionnaire with 71 items was prepared and sent to proper organizations. The statistical analysis such as factor analysis was applied to about 400 of them returned. The six success factors and 20 sub success factors were resulted from factor analysis. The six success factors include systems management factor, technology and organization factor, the efficiency of IT department factor, technology application factor, outsourcing factor and environment factors. This study finds the outsourcing and environment factors are very important factors as much as other success factors which previously were mentioned.

Determinants of ASP Effectiveness in Small-Medium Enterprises (중소기업 ASP 효과의 결정요인에 관한 연구)

  • Mun, Yong-Eun
    • Journal of Digital Convergence
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    • v.4 no.1
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    • pp.93-109
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    • 2006
  • Several studies have investigated the success of ASP from various perspectives. This study, thus, investigated factors affecting ASP effectiveness in various literature relevant ASP and outsourcing. By applying the basic ideas of the IS success model, this study proposes a research model of the factors affecting the success of ASP, in term of internal factors(Top Management Involvement, User Participation, Size of Organization, IS Maturity) and Reliability factors(Transaction Reliability, After-Sale Reliability, System Reliability, Security). The proposed model is expected to provide a guideline to researchers and practitioners extend their understanding of the success factors of the ASP effectiveness.

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A Framework of Factors Affecting ASP Effectiveness (ASP 효과에 영향을 미치는 요인)

  • Moon Yong-Eun
    • The Journal of Information Systems
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    • v.15 no.2
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    • pp.227-245
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    • 2006
  • Several studies have investigated the success of ASP(Application Service Provider) from various perspectives. This study, thus, investigated factors affecting ASP effectiveness in various literature relevant ASP and outsourcing. By applying the basic ideas of the IS success model, this study proposes a research model of the factors affecting the success of ASP, in term of internal factors(Top Management Involvement, User Participation, IS Maturity) and external factors(Transaction Reliability, Service Reliability, System Trust Security). The proposed model is expected to help both researchers and practitioners extend their understanding of the success factors of the ASP effectiveness.

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The Effect of Strategic Recognition and Risks of IT Outsourcing on the Degree of Outsourcing (IT 아웃소싱에 대한 전략적 인식과 위험이 아웃소싱의 정도에 미치는 영향)

  • 문용은
    • Journal of the Korean Operations Research and Management Science Society
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    • v.27 no.3
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    • pp.21-40
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    • 2002
  • Recently, IT outsourcing has become a very important management strategy which implements information systems in organizations. This paper investigates the risks and strategic recognition as a key factors affecting on the degree of IT outsourcing. Specifically the risks of IT outsourcing and its four components-risk of control, risk of economical, risk of technical, risk of relational - are examined to be a negative effect on the degree of outsourcing. And strategic recognition about outsourcing is examined how to affect en the risks and the degree of IT outsourcing. To empirically test these relationships, data ere gathered from senior IT managers in 86 corporations. Results of this study show that the degree of outsourcing is strongly influenced by risk of control, risk of economical, risk of relational. But risk of technical does not influence on the degree of outsourcing. And strategic recognition about outsourcing is found that is negative effect on the risks of IT outsourcing and positive effect on the degree of IT outsourcing. The results provide a good framework to minimize the risks for IT outsourcing success.

IT Governance Mediated the Effect of Human Resource Capability on Information Systems Outsourcing Success (인적자원능력이 정보시스템 아웃소싱 성공에 미치는 영향에 있어서 IT거버넌스의 매개효과)

  • Lee, Jong-Man
    • The Journal of the Korea Contents Association
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    • v.9 no.7
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    • pp.285-293
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    • 2009
  • The purpose of this paper is to examine IT governance mediated the effect of human resource capability on information systems outsourcing success. The survey method was used for this paper, and data from a total of 108 companies that were listed greater than $10 million were used for the analysis. And structural equation model was used to analyze the data. The results of this empirical study is summarized as followings. First, human resource capability do not have a direct effect on information systems outsourcing success but IT governance mediates the effect of human resource capability. Second, preparedness capability and relationship capability have positive effect on the IT governance. The findings have significant implications for IT governance in information systems outsourcing.