Mary C. Lacity

A review of the predictors, linkages, and biases in IT innovation adoption research

We present a review and analysis of the rich body of research on the adoption and diffusion of IT-based innovations by individuals and organizations. Our review analyzes 48 empirical studies on individual and 51 studies on organizational IT adoption published between 1992 and 2003. In total, the sample contains 135 independent variables, eight dependent variables, and 505 relationships between independent and dependent variables. Furthermore, our sample includes both quantitative and qualitative studies. We were able to include qualitative studies because of a unique coding scheme, which can easily be replicated in other reviews. We use this sample to assess predictors, linkages, and biases in individual and organizational IT adoption research. The best predictors of individual IT adoption include Perceived Usefulness, Top Management Support, Computer Experience, Behavioral Intention, and User Support. The best predictors of IT adoption by organizations were Top Management Support, External Pressure, Professionalism of the IS Unit, and External Information Sources. At the level of independent variables, Top Management Support stands as the main linkage between individual and organizational IT adoption. But at an aggregate level, two collections of independent variables were good predictors of both individual and organizational IT adoption. These were innovation characteristics and organizational characteristics. Thus, we can consistently say that generic characteristics of the innovation and characteristics of the organization are strong predictors of IT adoption by both individuals and organizations. Based on an assessment of the predictors, linkages, and known biases, we prescribe 10 areas for further exploration.

A review of the IT outsourcing literature: Insights for practice

This paper reviews research studies of information technology outsourcing (ITO) practice and provides substantial evidence that researchers have meaningfully and significantly addressed the call for academics to produce knowledge relevant to practitioners. Based on a review of 191 IT outsourcing articles, we extract the insights for practice on six key ITO topics relevant to practitioners. The first three topics relate to the early 1990s focus on determinants of IT outsourcing, IT outsourcing strategy, and mitigating IT outsourcing risks. A focus on best practices and client and supplier capabilities developed from the mid-1990s and is traced through to the late 2000s, while relationship management is shown to be a perennial and challenging issue throughout the nearly 20years under study. More recently studies have developed around offshore outsourcing, business process outsourcing and the rise, decline and resurrection of application service provision. The paper concludes by pointing to future challenges and developments.

A review of the IT outsourcing empirical literature and future research directions

An enormous amount of information has been produced about the IT outsourcing phenomenon over the last 20 years, but one has to look to the academic literature for consistent, objective, and reliable research approaches and analyses. Our review finds that, in practice, the academic literature on IT outsourcing has very much honored both rigor and relevance in the ways in which research has been conducted. Our central purpose in the review was to answer two research questions: What has the empirical academic literature found about information technology outsourcing (ITO) decisions and outcomes? What are the gaps in knowledge to consider in future ITO research? To answer these questions, we examined 164 empirical ITO articles published between 1992 and 2010 in 50 journals. Adapting a method used by Jeyaraj et al. (2006), we encapsulated this vast empirical literature on ITO in a way that was concise, meaningful, and helpful to researchers. We coded 36 dependent variables, 138 independent variables, and 741 relationships between independent and dependent variables. By extracting the best evidence, we developed two models of outsourcing: one model addressed ITO decisions and one model addressed ITO outcomes. The model of ITO decisions includes independent variables associated with motives to outsource, transaction attributes, client firm characteristics, and influence sources. The model of ITO outcomes includes independent variables associated with client and supplier capabilities, relationship characteristics, contractual governance, decision characteristics, and transaction attributes. We also examined the interactions among broad categories of variables and the learning curve effects resulting from feedback loops. Overall, ITO researchers have a broad and deep understanding of ITO. However, the field continues to evolve as clients and suppliers on every inhabited continent participate actively in the global sourcing community. There is still much research yet to be done. We reviewed recent studies that have identified gaps in current knowledge and proposed future paths of research pertaining to strategic motivations, environmental influences, dynamic interactions, configurational and portfolio approaches, global destinations, emerging models, reference theory extension, and grounded theory development.

It and Business Process Outsourcing: The Knowledge Potential

Abstract Despite the widespread trends in IT and business process outsourcing, there has been too little focus on what happens to knowledge when an organization outsources. We present a framework for evaluating the knowledge potential within five different types of insourcing and outsourcing arrangements. A detailed example of an enterprise partnership relationship is described as a benchmark for how companies can leverage the knowledge potential from IT and BPO outsourcing.

Understanding qualitative data: a framework of text analysis methods

Information systems (IS) researchers have argued the need for using qualitative approaches, such as action research, ethnomethodology, phenomenology, and futures research, to supplement widely used quantitative approaches. Despite the interest in qualitative approaches, almost all IS articles published in leading IS journals during the previous decade continue to report the results of quantitative studies. The disparity between the interest in and adoption of qualitative approaches may be attributed to unfamiliarity with qualitative approaches for analyzing text data and the mistaken belief that all qualitative approaches are antipositivist. This paper makes qualitative methods more accessible to both researchers and practitioners by providing a framework that categorizes various text analysis approaches. The framework classifies methods as positivist, linguistic, and interpretivist, based on assumptions about the nature of text data, the researchers influence on text interpretation, and the validity checks used to justify text interpretations. Thus, all researchers can consider qualitative text analysis methods regardless of their paradigmatic position.

Risk mitigation in IT outsourcing strategy revisited : longitudinal case research at LISA

Abstract The origins and history of a single case study of large-scale Information Technology (IT) outsourcing in the 1994–99 period is investigated in the United Kingdom Defence sector. Such deals are high risk and the paper describes types of risk and how the client organization sought to mitigate these. These risks and mitigation approaches are then analysed against a distinctive risk framework formulated for IT outsourcing. Risks emerging in terms of type and scope of outsourcing, vendor selection criteria and process, the role of the contract, retained capabilities and management processes, and partnering and relationship dimensions are then assessed against prior research findings. Two additional distinctive risks are identified from the case history arising from the public sector context and supplier long-term market strategy. A contribution of the paper is the revised risk framework for analysing IT outsourcing that is then presented. Finally, the implications of these findings for future research and practice are highlighted.

Global outsourcing of back office services: lessons, trends, and enduring challenges

Purpose – To identify key lessons, trends and enduring challenges with global outsourcing of back office services.Design/methodology/approach – The authors extract lessons, project trends, and discuss enduring challenges from a 20 year research program conducted by these authors and their extended network of co‐authors and colleagues.Findings – The authors identify seven important lessons for successfully exploiting the maturing Information Technology Outsourcing (ITO) and Business Process Outsourcing (BPO) markets. The lessons require back office executives to build significant internal capabilities and processes to manage global outsourcing. The authors predict 13 trends about the size and growth of ITO and BPO markets, about suppliers located around the world, and about particular sourcing models including application service provision, insourcing, nearshoring, rural sourcing, knowledge process outsourcing, freelance outsourcing, and captive centers. The authors identify five persistent, prickly issues...

REALIZING OUTSOURCING EXPECTATIONS Incredible Expectations, Credible Outcomes

Abstract Drawing from the firsthand experiences of senior executives and IT managers in US and British companies, this article summarizes the expectations they had for outsourcing and explains what went wrong—and why—when expectations were not met. Successful outsourcing experiences are then used to outline a prescription for ensuring that expected benefits are fully realized.

Global Sourcing of Business and IT Services

Customer and Supplier Learning on IT and Business Service Practices Managing 54 Processes in the Sourcing Life Cycle Retaining Nine Core Capabilities In-House Assessing Twelve Supplier Capabilities The Winners Curse in IT Outsourcing: The Case of Esso Outsourcing Human Resources: The Case of BAE Systems Outsourcing Indirect Procurement: The Case of BAE Systems Managing Knowledge When Outsourcing: Cases in Financial Services Offshoring of IT Work: 20 Practices How Corporations E-Source Application Service Provision and Risk Mitigation The Future of Global Sourcing: Twelve Emerging Trends Workbook Section: Readings and Assignments

Information technology outsourcing in Europe and the USA: Assessment issues

The paper combines findings from two studies of European and North American information technology/information systems outsourcing practice, and focuses on the economics of outsourcing, and contracting and performance measurement issues. The studies found weaknesses in organizational understanding of the economics imbedded in vendor bids, not least because in-house costs and performance of information systems were not always fully known or identified. Sources of hidden costs are related to poor prior evaluation practice and contracting. Building on previous work some economic myths in information technology outsourcing are identified. Respondent experiences in setting up measurement systems are discussed, including contexts in which tight and loose contracting can be successful and processes for setting up measures and service levels. Finally the paper identifies six problem areas that practitioners need to be wary of when running measurement systems in respect of information technology outsourcing contracts. On assessment, the paper concludes by stressing the importance of retaining in-house capability sufficient to actively manage the vendor, contract and measurement systems.