• Asia pacific journal of information systems
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• 제20권3호
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• pp.115-137
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• 2010

Information technology (IT) outsourcing, the use of a third-party vendor to provide IT services, started in the late 1980s and early 1990s in Korea, and has increased rapidly since 2000. Recently, firms have increased their efforts to capture greater value from IT outsourcing. To date, there have been a large number of studies on IT outsourcing. Most prior studies on IT outsourcing have focused on outsourcing practices and decisions, and little attention has been paid to objectively measuring the value of IT outsourcing. In addition, studies that examined the performance of IT outsourcing have mainly relied on anecdotal evidence or practitioners' perceptions. Our study examines the contribution of IT outsourcing to economic growth in Korean industries over the 1990 to 2007 period, using a production function framework and a panel data set for 54 industries constructed from input-output tables, fixed-capital formation tables, and employment tables. Based on the framework and estimation procedures that Han, Kauffman and Nault (2010) used to examine the economic impact of IT outsourcing in U.S. industries, we evaluate the impact of IT outsourcing on output and productivity in Korean industries. Because IT outsourcing started to grow at a significantly more rapid pace in 2000, we compare the impact of IT outsourcing in pre- and post-2000 periods. Our industry-level panel data cover a large proportion of Korean economy-54 out of 58 Korean industries. This allows us greater opportunity to assess the impacts of IT outsourcing on objective performance measures, such as output and productivity. Using IT outsourcing and IT capital as our primary independent variables, we employ an extended Cobb-Douglas production function in which both variables are treated as factor inputs. We also derive and estimate a labor productivity equation to assess the impact of our IT variables on labor productivity. We use data from seven years (1990, 1993, 2000, 2003, 2005, 2006, and 2007) for which both input-output tables and fixed-capital formation tables are available. Combining the input-output tables and fixed-capital formation tables resulted in 54 industries. IT outsourcing is measured as the value of computer-related services purchased by each industry in a given year. All the variables have been converted to 2000 Korean Won using GDP deflators. To calculate labor hours, we use the average work hours for each sector provided by the OECD. To effectively control for heteroskedasticity and autocorrelation present in our dataset, we use the feasible generalized least squares (FGLS) procedures. Because the AR1 process may be industry-specific (i.e., panel-specific), we consider both common AR1 and panel-specific AR1 (PSAR1) processes in our estimations. We also include year dummies to control for year-specific effects common across industries, and sector dummies (as defined in the GDP deflator) to control for time-invariant sector-specific effects. Based on the full sample of 378 observations, we find that a 1% increase in IT outsourcing is associated with a 0.012~0.014% increase in gross output and a 1% increase in IT capital is associated with a 0.024~0.027% increase in gross output. To compare the contribution of IT outsourcing relative to that of IT capital, we examined gross marginal product (GMP). The average GMP of IT outsourcing was 6.423, which is substantially greater than that of IT capital at 2.093. This indicates that on average if an industry invests KRW 1 millon, it can increase its output by KRW 6.4 million. In terms of the contribution to labor productivity, we find that a 1% increase in IT outsourcing is associated with a 0.009~0.01% increase in labor productivity while a 1% increase in IT capital is associated with a 0.024~0.025% increase in labor productivity. Overall, our results indicate that IT outsourcing has made positive and economically meaningful contributions to output and productivity in Korean industries over the 1990 to 2007 period. The average GMP of IT outsourcing we report about Korean industries is 1.44 times greater than that in U.S. industries reported in Han et al. (2010). Further, we find that the contribution of IT outsourcing has been significantly greater in the 2000~2007 period during which the growth of IT outsourcing accelerated. Our study provides implication for policymakers and managers. First, our results suggest that Korean industries can capture further benefits by increasing investments in IT outsourcing. Second, our analyses and results provide a basis for managers to assess the impact of investments in IT outsourcing and IT capital in an objective and quantitative manner. Building on our study, future research should examine the impact of IT outsourcing at a more detailed industry level and the firm level.

• Asia pacific journal of information systems
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• 제17권3호
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• pp.131-146
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• 2007

Recently, the role of IT service providers has been enlarged from managing a single function or system to reconstructing entire information management processes in new ways to contribute to shareholder value across the enterprise. This movement toward extensive and complex outsourcing agreements has been driven by the assumption that outsourcing information technology functions is a reliable approach to maximizing resource productivity. Hiring external IT service providers to manage part or all of its information-related services helps a firm focus on its core business and provides better services to its clients, thus obtaining sustainable competitive advantage. This practice of focusing on the strategic aspect of outsourcing is referred to as strategic sourcing where the focus is capability sourcing, not procurement. Given the importance of the strategic outsourcing, however, to our knowledge, there is little empirical research on the relationship between the strategic outsourcing orientation and outsourcing performance. Moreover, there is little research on the factor that makes the strategic outsourcing effective. This study is designed to investigate the relationship between strategic IT outsourcing orientation and IT outsourcing performance and the process through which strategic IT outsourcing orientation influences outsourcing performance, Based on the framework of strategic orientation-performance and core competence based management, this study first identifies core competency orientation as a proper strategic orientation pertinent to IT outsourcing and IT outsourcing process management capability as the mediator to affect IT outsourcing performance. The proposed research model is then tested with a sample of 200 firms. The findings of this study may contribute to the literature in two ways. First, it draws on the strategic orientation - performance framework in developing its research model so that it can provide a new perspective to the well studied phenomena. This perspective allows practitioners and researchers to look at outsourcing from an angle that emphasizes the strategic decision making to outsource its IT functions. Second, by separating the concept of strategic orientation and outsourcing process management capability, this study provides practices with insight into how the strategic orientation can work effectively to achieve an expected result. In addition, the current study provides a basis for future studies that examine the factors affecting IT outsourcing performance with more controllable factors such as IT outsourcing process management capability rather than external hard-to-control factors including trust and relationship management. This study investigates the major factors that determine IT outsourcing success. Based on strategic orientation and core competency theories, we develop the proposed research model to investigate the relationship between core competency orientation and IT outsourcing performance and the mediating role of IT outsourcing process management capability on IT outsourcing performance. The model consists of two independent variables (core-competency-orientation and IT outsourcing process management capability), and two dependent variables (outsourced task complexity and IT outsourcing performance). Comprehensive data collection was conducted through an outsourcing association. The survey data were analyzed using a structural analysis method. IT outsourcing process management capability was found to mediate the effect of core competency orientation on both outsourced task complexity and IT outsourcing performance. Further analysis and findings are discussed.

• 한국산업정보학회논문지
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• 제12권4호
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• pp.153-163
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• 2007

IT 아웃소싱에 관한 현재까지의 연구에서는 IT 아웃소싱의 계약관계, 서비스 수준 계약관계(SLA), 파트너쉽 대한 연구의 성과는 많이 있다. 또, 주로 대기업과 공기업들의 아웃소싱전략과 성공요인분석 등의 연구가 주류를 이루고 있고 성과측정 또는 만족도 측정모델에 관련한 연구였다. 그러나 기업들은 IT 아웃소싱 수행업체 선정 시 많은 고민을 하고 있는 상태이다. 본 연구는 현재까지 연구된 모든 분야의 IT 아웃소싱 성공 요인들을 분석하고 AHP기법을 통해 요인과 요인변수들을 가중치 별로 도출하였고 요인과 요인변수들의 중요도 가중치를 계산 해내어 IT 아웃소싱 수행업체를 평가할 수 있는 방법론은 제시하였다.

• 동아시아경상학회지
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• 제10권3호
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• pp.75-91
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• 2022

Purpose - This study aims to predict the future market and draw policy implications by analyzing the trend of outsourcing housework through the food subscription service. Research design, data, and methodology - Content analysis was conducted on the consumption value emphasized in advertisements by item targeting food subscription service advertisements. Advertisements used as research data were extracted via keyword searches on Google web pages. A total of 30 advertisements selected were used for the final analysis. Result -The consumption values emphasized in the advertisements for staple foods, refreshments, and special foods were analyzed by considering the following factors: price, convenience, health, and pleasure. Convenience and health were emphasized in the staple foods, and price and pleasure were emphasized in the snacks. In the case of special foods, convenience and pleasure appeared together with a focus on health. Conclusion - Based on the trend of food subscription services, the implications for the market and policies for outsourcing housework through home meal replacement can be presented. Considering that the consumption value of a food subscription service is differentiated by item, it is necessary to formulate a plan to develop the market and policies related to outsourcing housework.

• Asia pacific journal of information systems
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• 제13권3호
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• pp.213-242
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• 2003

This paper employs the lens of the resource-based view(RBV) to investigate how firms create competitive advantages through IS outsourcing arrangements. The RBV framework is used to explore how a firm adds value and reaps benefits from IS outsourcing arrangements. The primary finding is that in the process of value creation, the 'absorption' of the managerial and technical capabilities of external vendors is critical. When the client firm is able to absorb and integrate the IT capabilities of outsourcing vendors, these absorbed capabilities in turn become the source of IT competence and competitive advantages $vis-\grave{a}-vis$ the competition.

• 한국IT서비스학회지
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• 제4권1호
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• pp.149-160
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• 2005

Information system outsourcing induces firms to concentrate on the core competence and to improve business value by utilizing specialized information systems outsourcing vendors. However, for those strategic effects, the outsourced information systems should guarantee a certain service level. Now companies are considering to adopt SLA(Service Level Agreement) as a method to check the service level of the outsourced information systems in quantitative terms. On the contrary, customer satisfaction survey supports qualitative analysis, and helps companies to understand the qualitative effects on information system more systematically. Recently, the growing use of the internet makes customer satisfaction survey to be carried out on the web. For that reason, lots of researches related to web survey have been performed. But these researches are just focused on finding out only items to be measured and the effect of web survey. In this paper, based on the service quality research model for information system outsourcing, we formalize and propose a web survey process, a system architecture, and a functional structure for information system outsourcing customer satisfaction survey. Additionally, we provide the implementation results for the web survey systems.

• 정보화정책
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• 제31권3호
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• pp.88-105
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• 2024

많은 기업에서 핵심 역량 집중과 효율적 운영을 위해 정보시스템(IS) 운영 아웃소싱을 도입하고 있다. 그러나, 대부분 인력 기반 산정 방식(Head Counting)을 적용하고 있고, 이는 사업 비용을 객관적인 기준이나 체계 없이 당사자 간의 합의에 따라 산정하는 방식으로 계약까지 소모적인 논쟁이 발생한다. 또한, 인력 기반의 아웃소싱 계약 환경에서는 고객사와 IT서비스 제공사 모두 생산성, 효율, 품질 향상에 대한 동기부여가 미흡하여 기업 경쟁력 확보에 어려움이 있다. 본 연구에서는 실제 그룹사 기반의 IT서비스 기업에서 오랫동안 고객사와 협의를 거쳐 개발하고 실제 계약에 적용하기로 합의한 IS 운영 아웃소싱 가격모델 개발과정과 이를 기반으로 IT서비스 경쟁력을 확보해가기 위해 추진해 온 활동들을 소개함으로써, 향후 아웃소싱 계약방식 전환을 시도하는 기업들에 현실적인 가이드를 제시하고자 한다.

• 디지털산업정보학회논문지
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• 제7권2호
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• pp.173-183
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• 2011

The business is faced with the situation must improve a power in an increasingly competitive environment due to the recent rapid advance in information technology and the opening and expansion of global market, fast technological change, and various customer demand. The rapid change in information technology is having an effect on not only all the processes to develop products, but information contents that is provided for the purpose of customer value, and the appearance of products. In other words, the information technology is being recognized as a very important factor among other factors for companies to enhance their competitiveness. In addition, it is more efficient to focus on key factor to maintain the competitive advantage on the using of information technology by outsourcing information systems, rather than by operating the systems under their own. Since the global financial crisis, the long-term recession has been increasing companies who is ready to adopt outsourcing or adopted already. This study is to understand the environment and unique characteristics of outsourcing services and related industries focusing on information system operation and management in information outsourcing services, and is to set the concept needed through my theory that is connected to the service quality and customer satisfaction. A lot of business wiew the improvement of service quality and ensuring customer satisfaction as the major factors of business growth, and lots of ongoing studies have focused on service management in the Information outsourcing service industry. Yet few studies have ever concentrated on the quality of information system operation management service. This study, moreover, is to define the quality of service related with customer satisfaction from customer's viewpoint, measuring effects on customer satisfaction. The quality of outsourcing service on information system in this study is a great help to companies who are offering information outsourcing service, and company's managers and staffs who outsourcedto specialized company.

• 한국조리학회지
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• 제11권4호
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• pp.102-117
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• 2005

It was maintained that successful establishment and accomplishment of outsourcing might be possible only when those eating-out companies re-establish their concept of management strategy, identify core competencies through value-chain analysis, make a through cost analysis, select cooperative companies via overall screening, expand the area of outsourcing, enhance partnership to improve service quality, harmonize bilateral organization culture, remove the ambiguity of contract terms, protect core competencies of the rest area, continue with evaluation and control, and spinoff or invest to a new specialized business. Then, it was suggested that highway rest area business construct the core competencies and introduce outsourcing from a future-oriented viewpoint so that they can concentrate the competencies to competitive area and expand outsourcing scope to professional area such as finance and accounting, general affairs, personnel affairs, logistics, marketing, and R&D. They need to make out the problem of productivity reduction resulted from many years working employee's old age, refine human resource, and maintain the standards of skill so that they can improve service quality of the rest area, streamline each organization currently having so a large manpower, reduce manpower, and improve the productivity.

• 한국문헌정보학회지
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• 제39권2호
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• pp.35-55
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• 2005

본 연구는 목록 아웃소싱의 타당성 분석을 시도하였으며, 아웃소싱으로 인해 발생하는 부가가치를 정보경제학에 기초한 직접편익, 가치연결의 효과로 분류하여 분석하는 경제성 분석모형을 적용하였다. 직접편익은 비용절감과 비용회피로 가치연결 효과는 목록 품질의 향상정도로 측정하였다. 분석결과, 목록 아웃소싱의 종합적인 타당성은 입증되지 않았으며, 이는 납품업체들의 전문성 결여로 품질제어를 하는데 사서의 시간이 많이 투입되어 실제적인 비용절감에 효과가 거의 없는 것이 가장 근 요인인 것으로 나타났다. 이렇게 현실적인 타당성이 미흡한 상태에서 목록 아웃소싱을 무리하게 이용할 경우 운영비용의 절감과 봉사기능의 제고라는 기본 취지를 달성하는 것이 불가능할 것이다.