Several prior articles have emphasized the importance of alignment between business and information system (IS) strategies, and between business and IS structures. Seeking to advance our understanding of alignment, we examine the dynamics of changes in alignment through strategy/structure interactions in the business and IS domains. More specifically, we address the following question: In what ways does alignment evolve over time? Changes in the strategic IS management profile (which includes business strategy, IS strategy, business structure, and IS structure) over time are examined using a punctuated equilibrium model, involving long periods of relative stability, or evolutionary change, interrupted by short periods of quick and extensive, or revolutionary, change. Case studies of changes in business and IS strategies and structure over long time periods in three organizations suggest that the punctuated equilibrium model provides a valuable perspective for viewing these dynamics. The cases suggest that a pattern of alignment may continue over a long period, because either the level of alignment is high or the managers do not recognize the low alignment as a problem. Revolutions, involving changes in most or all dimensions of the strategic IS management profile, interrupt the evolutionary changes. However, organizations hesitate to make such revolutionary changes in strategic IS management profiles. Complete revolutions apparently require a combination of strong triggers. Finally, post-revolution adjustments to one dimension of the strategic IS management profile seem to follow revolutionary changes.

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In the last fifteen years, academic research on information systems (IS) outsourcing has evolved rapidly. Indeed the field of outsourcing research has grown so fast that there has been scant opportunity for the research community to take a collective breath, and complete a global assessment of research activities to date. This paper seeks to address this need by exploring and synthesizing the academic literature on IS outsourcing. It offers a roadmap of the IS outsourcing literature, highlighting what has been done so far, how the work fits together under a common umbrella, and what the future directions might be. In order to adequately address the immense diversity of research on IS outsourcing and outsourcing in general, we develop a conceptual framework that helps us to categorize the literature. In particular, we look at the research objectives, methods used and theoretical foundations of the papers. In identifying the major research objectives, we view outsourcing as an organizational decision process and adapt Simon's stage model of decision making. This allows us to identify five major sourcing issues, from which at least one is covered by each academic article. These are the questions of <i>why</i> to outsource, <i>what</i> to outsource, <i>which</i> decision process to take, <i>how</i> to implement the sourcing decision, and what is the outcome of the sourcing decision. In analyzing the literature, we identify and structure the main explanatory factors and theoretical relationships within each of these sourcing stages. Based on our discussion of the research objectives, theoretical foundations and research approaches taken in the literature, we show how the various research streams hang together and we come up with a number of implications for research. Moreover, we identify a number of emerging sourcing issues. We believe that research on these "new" phenomena such as offshore outsourcing, application service providing and business process outsourcing would benefit from 'standing on the shoulders' of what has already been accomplished in the field of IS outsourcing.

The sourcing of application development is becoming increasingly complex. While much prior work has investigated sourcing in a homogeneous marketplace, sourcing choices have increased in complexity, with a myriad of choices ranging from insourcing to domestic outsourcing to engaging Application Service Providers (ASP) to offshoring . In this study, based upon four organizational theories (Transaction Cost, Resource-Based View, Resource-Dependence View, and the Knowledge-Based View of the Firm), we suggest 10 attributes that firms consider when deciding upon outsourcing of applications. We tested the attributes' strength by performing conjoint analysis on data collected from 84 IS executives. We constructed profiles, which are combinations of attributes having different levels. Each executive responded to 18 such distinct profiles and selected corresponding outsourcing choices. Our results found that the three most significant drivers of an IT application service choice were cost, risk, and vendor capability. However, the importance of these drivers varied across the different sourcing options. Based upon this, we offer implications for decision-makers and researchers, along with directions for future research.