Outsourcing and offshore outsourcing of information technology in major corporations

Abstract

If you would like to write for this, or any other Emerald publication, then please use our Emerald for Authors service information about how to choose which publication to write for and submission guidelines are available for all. Please visit www.emeraldinsight.com/authors for more information. About Emerald www.emeraldinsight.comEmerald is a global publisher linking research and practice to the benefit of society. The company manages a portfolio of more than 290 journals and over 2,350 books and book series volumes, as well as providing an extensive range of online products and additional customer resources and services.Emerald is both COUNTER 4 and TRANSFER compliant. The organization is a partner of the Committee on Publication Ethics (COPE) and also works with Portico and the LOCKSS initiative for digital archive preservation. AbstractPurpose -The purpose of this paper is to explore the views of top corporate financial executives on the success of implementation of systems outsourcing and offshore outsourcing, as well as the variables associated with success in these areas. Design/methodology/approach -An analysis of secondary data obtained from the Financial Executives International comprehensive survey-based research on technology issues for financial executives. Regression analysis and other statistical methods are used. Findings -The study examined usage of outsourcing and offshore outsourcing from the top financial executive's perspective. Only 30 percent of the surveyed companies outsourced IT and only 25 percent engaged in offshore outsourcing IT. Size of the company did significantly influence usage. The major motivators behind the decision to pursue outsourcing were the views that IT is not a core competency and that significant cost reduction was possible. The experiences of the organizations surveyed reflect a general satisfaction with outsourcing and offshore outsourcing. But finally, it was found that while overall use of outsourcing did correlate with higher IT returns, offshore outsourcing did not correlate with higher IT return to the organization at traditional significance levels.Research limitations/implications -The study can be used as a basis for further exploration on outsourcing and offshore outsourcing success, influencing variables, and motivators. Practical implications -The findings can be used to guide management teams in outsourcing and offshore outsourcing decisions to maximize returns to their organizations. Originality/value -Despite many studies that examine success from the theoretical and IT perspectives, this paper provides a large sample set, which empirically reviews major corporations' top financial executives' experiences with outsourcing and offshore outsourcing. In addition, it begins to explore the variables influencing overall outsourcing and offshore outsourcing success perception. Major contributions are the extent of the detail, the large dataset analysis, and the CFO rather than CIO perspective.

Information systems contracts and relationships: A Spanish perspective

“…The results of this study indicate that this period is a booming period for computer departments of the largest Spanish firms. However, that rise is not exclusive tor IT service providers in the national market (which is no longer static but in a slight downward trend): The offshore outsourcing of IT services also benefits from this rise (Peslak, 2012).…”

“…In addition, a growing tendency to look for providers in foreign countries exists (Peslak, 2012). Although a certain pressure exists in several western countries such as the United States, the United Kingdom, or France to slow down this movement towards offshore outsourcing, some studies (Khan & Lacity, 2012) reveal that firms, in fact, plan to continue with their offshore policy.…”

Does Outsourcing Really Improve Firm Performance? Empirical Evidence and Research Agenda

“…), the USA and Canada (Bardhan et al . ; Peslak ), Sweden (Bengtsson and Dabhilkar ; Bengtsson et al . ), Germany (Grimpe and Kaiser ), Netherlands and Taiwan (Hsiao et al .…”

Outsourcing de sistemas de información: situación actual, evolución y tendencias

“…Por otra parte, se da una tendencia creciente a buscar proveedores en países extranjeros (Peslak, 2012). A pesar de que existe cierta presión en diversos países occidentales, como Estados Unidos, Gran Bretaña o Francia, para frenar este movimiento hacia la externalización en el extranjero u offshore outsourcing, los resultados de algunos estudios (Khan y Lacity, 2012) muestran que las empresas no están influidas por estas presiones.…”