Dec 06, 2011

How to improve my outsourcing strategy?

The number of metrics in outsourcing contracts for evaluating the accessibility, reliability and performance of vendors is daunting. How do I correlate those metrics to the value of outsourced IT services?

Hi simon,

You might want to give this report a read since it covers some IT outsourcing topics. It's in PDF format.

IT Outsourcing Strategies: Universalistic, Contingency,
and Configurational Explanations of Success

"Focus on individual outsourcing decisions in IT research has often yielded contradictory findings and recommendations. To address these contradictions, we investigate a holistic, configurational approach with
the prevailing universalistic or contingency perspectives in exploring the effects of IT outsourcing strategies
on outsourcing success. Based on residual rights theory, we begin by identifying three dimensions of IT outsourcing strategies: degree of integration, allocation of control, and performance period. We then develop a
model of fit-as-gestalt, drawing from literatures on strategy, governance, interorganizational relationships, and

Next, based on data from 311 firms in South Korea, we test universalistic and contingency perspectives in
explaining the relationship between IT outsourcing strategies and outsourcing success. We then identify three
congruent patterns, or gestalts, of IT outsourcing strategies. We term these strategies independent, arm’s-length,
and embedded strategies. To establish the predictive validity of these gestalts and the viability of a configurational perspective, we then explore the effects of these congruent gestalts vis-à-vis noncongruent patterns on three dimensions of outsourcing success: strategic competence, cost efficiency, and technology catalysis. We also contrast the effects of each of the three gestalts on each of the three dimensions of outsourcing success. Our findings indicate the superiority of the configurational approach over universalistic and contingency perspectives in explaining outsourcing success."

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