Information systems outsourcing: Issues and evidence

摘要

According to the popular press, outsourcing is becoming pervasive in the marketplace. The primary philosophical question ‘whether outsourcing is specific to information systems functions or is it as widespread as being publicized’ remains unanswered. Are we reliving the ‘hollowed out’ corporation or is it just another fad that will pass away? Is there any proof that corporations are becoming ‘virtual’ that is, one or a few managers forming a company and outsourcing almost everything to outside companies. This paper looks at the potential risks and benefits of outsourcing and presents some statistics on outsourcing. It then lists the research issues covered in the literature, followed by a content analysis of the annual reports of 31 companies (25 clients and six vendors). It attempts to determine the perceived value of the outsourcing activity based on how the outsourcing information is communicated to the shareholders. Finally, the paper discusses the relationship (or lack thereof) between productivity and outsourcing.