Benoit A. Aubert

A transaction cost model of IT outsourcing

This paper proposes and tests an explanatory model of information technology (IT) outsourcing behavior. Relying on transaction costs and incomplete contracts theories, the model hypothesizes that characteristics of IT operation activities--asset specificity, uncertainty, business skills, and technical skills required to perform the activities--will influence the level of their outsourcing. The model was tested using data from a survey of 335 firms. Results indicate that uncertainty is the major deterrent to outsourcing, while the level of technical skills is the most important reason to outsource. Business skills do not seem to play a significant role. Finally, asset specificity, which is always presented as a constraint to outsourcing, showed inconsistent effects.

The impact of interface usability on trust in Web retailers

Web retailing is expected to grow at aggressive rates in future years, but lack of trust on the part of potential customers can impede this growth. So, as transactions through the Internet develop and mature, success will largely be dependent on gaining and maintaining this trust. It has been suggested that the quality of the user interface of the Web site is a determinant of the initial establishment of trust. Describes a study where 66 subjects were asked to perform some predefined book purchasing task in a series of sites with varying interface quality. A strong relationship between interface quality and trust was found and some components of user interface quality were more important than others. Discusses the implications for Web site design.

A transaction cost approach to outsourcing behavior: some empirical evidence

Abstract Outsourcing of information services is a fast growing trend and is receiving much attention in the IS community. This paper presents the results of a study of the outsourcing behavior of ten large organizations. The analysis used the transaction cost framework to explain outsourcing behavior at two different levels. At the first level of analysis, the role of asset specificity, measurement problem, and frequency in explaining the choice of the outsourced activities is investigated. The second level of analysis focuses on the influence of asset specificity and measurement problem on the terms and on the management of the contract between a firm and its outsourcer. The results presented here support the basic principles of transaction cost and incomplete contract theories.

Further understanding of trust and performance in virtual teams

Trust has been deemed to be critical in ensuring the efficient operation of virtual teams and organizations. This study empirically verifies ability and integrity as being antecedents of trust formation in virtual teams. However, effective team performance was found to be independent of the formation of trust. Further analysis suggests that information symmetry and good communication distinguish high performance teams from low performance teams.

Assessing the risk of IT outsourcing

Outsourcing decisions and contractual arrangements of the type required by an IT outsourcing deal entail risks. This is not to say that outsourcing is bad in itself. It only means that, as in other risky business ventures, such as new product development, capital investments and IS projects, risk assessment and risk management are important contributors to the success of an IT outsourcing venture. This paper focuses on risk assessment. After providing a brief conceptual definition of risk, the paper reviews the empirical literature in order to identify the main undesirable outcomes that may result from an IT outsourcing deal. It then uses transaction cost and agency theory as a primary theoretical basis, and proposes a framework for categorizing risk factors which have been identified in the literature. Finally, the paper discusses the dynamics of risk by examining how the various risk factors are linked to the undesirable outcomes.

A framework for information technology outsourcing risk management

This paper takes stock from several studies on Information Technology outsourcing risk. A definition of risk is offered, and an illustration from five case studies is used to show how risk can be managed. Results show that an active risk management approach can reduce risk exposure substantially while enabling the organizations to still reap the benefits associated with outsourcing.

Managing the risk of IT outsourcing

While it can bring several benefits, IT outsourcing entails some risks. As is the case in other types of investments or business ventures, the risk associated with an IT outsourcing project must be evaluated and managed. This paper proposes a framework for the management of IT outsourcing risk and assesses the usefulness of the framework using data gathered about two cases of system development outsourcing. After providing a conceptual definition of risk and of risk exposure, the paper presents the proposed risk management framework. The two cases are then described, along with the evaluation of the level of risk exposure of each and the risk management mechanisms that were included in the contracts. The results of the study suggest that, by charting the various items that contribute to risk exposure and by specifically applying appropriate mechanisms that can target those elements with higher levels of risk exposure, outsourcing risk can be adequately managed.

Adoption of smart cards in the medical sector:: the Canadian experience

This research evaluates the factors influencing the adoption of smart cards in the medical sector (a smart card has a micro-processor containing information about the patient: identification, emergency data (allergies, blood type, etc.), vaccination, drugs used, and the general medical record). This research was conducted after a pilot study designed to evaluate the use of such smart cards. Two hundred and ninety-nine professionals, along with 7248 clients, used the smart card for a year. The targeted population included mostly elderly people, infants, and pregnant women (the most intensive users of health care services). Following this pilot study, two surveys were conducted, together with numerous interviews, to assess the factors influencing adoption of the technology. A general picture emerged. indicating that although the new card is well-perceived by individuals, tangible benefits must be available to motivate professionals and clients to adopt the technology. Results show that the fundamental dimension that needs to be assessed before massive diffusion is the relative advantage to the professional. The system must provide a direct benefit to its user. The relative advantage of the system for the professional is directly linked to the obligation for the client to use the card. The system is beneficial for the professional only if the information on the card is complete. Technical adequacy is a necessary but not sufficient condition for adoption.

Information flows and business process integration

Purpose – Many business process improvement efforts emphasize better integration, yet process integration can mean many things. The purpose of this paper is to emphasize the importance of information flows to modern business processes, and draw upon recent organizational and information systems literature to characterize process integration and to derive four principles of process integration: accessibility, timeliness, transparency, and granularity of information flows.Design/methodology/approach – Using a field study, the four principles of process integration are applied to analyze ten different business processes across five organizations.Findings – In total, 18 generalized activities are identified that describe non‐integrated behavior, and “keying in known data” was found to be the most common. Among other findings, analysis highlights the importance of documentation to modern business processes, especially for coordination roles, and the paper describes three different purposes for documentation fo...

A resource-based analysis of IT sourcing

This paper studies the relationships between the choice of a sourcing mode for information systems, the value of the resources used in systems development activities and the presence of those resources at a sufficient level within the firm. The objective is to better understand the factors underlying the decision to keep the development of an information system inside the firm or to entrust it to an outside partner. A sourcing model is proposed using the resource-based theory. A case study is used to illustrate the concepts included in the research model. Data from this case illustrate how the model could be used to predict the appropriate sourcing mode, given the availability of the necessary resources and their strategic value.