Sara Cullen

IT outsourcing configuration: Research into defining and designing outsourcing arrangements

Abstract In this paper, we introduce the concept of information technology outsourcing (ITO) ‘configuration’, defined as: a high-level description of the set of choices the organization makes in crafting its IT outsourcing portfolio. From research into 49 ITO arrangements studied over time, we identify seven attributes—Scope Grouping, Supplier Grouping, Financial Scale, Duration, Pricing, Resource Ownership, and Commercial Relationship—as key descriptors of an organizations ITO configuration. Seven further cases tested the relevance of the attributes. The contribution of this paper is its articulation of the concept of configuration as a taxonomy of ITO structural characteristics, the key attributes, and demonstration that configuration is an important concept for understanding, comparing, and managing ITO arrangements. In particular, the paper details the rationales for 31 different options in outsourcing, the risks and management issues emerging for each, and how these play out in different combinations in selected, illustrative case studies.

Intelligent IT outsourcing: Eight building blocks to success

Architect Phase: Discard the Myths: Gather Acumen Get Equipped: Prepare the Strategies Identify the Right Activities: Target the Services Ensure the Results: Design the Future Engage Phase: Commerical Mating: Select the Supplier(s) The Starting Gate: Make the Transition Govern Phase: Get the Results: Manage the ITO Do it Again: Reconsider the Options Conclusion.

Does Domberger's theory of ‘The Contracting Organization’ explain why organizations outsource IT and the levels of satisfaction achieved?

This paper contributes an interpretation of Dombergers theory of The Contracting Organization for use in an IT outsourcing context, then presents a preliminary test of the validity of that theory using data from an Australian survey of 235 senior IT managers. Our conclusion is that Dombergers theory appears to be a useful lens for understanding IT outsourcing, and that further research using purpose-collected data is therefore warranted. Phrased differently, Dombergers four types of benefit of contracting – namely Specialization, Market Discipline, Flexibility, and Cost Savings – appear to be a good way of summarizing senior IT managers’ explanations of why their organizations chose to outsource IT. The paper also conducts a preliminary test of the extent to which these four factors explain the purchasing organizations satisfaction with IT outsourcing.

Managing the sourcing process: A life cycle perspective

Outsourcing, whether of IT or business processes, onshore or offshore, continues to raise expectations and pose challenges for private and public sector organizations alike. Time and again, we have found even experienced organizations running into massive problems, suffering from slow organizational learning, and working in a reactive rather than an anticipatory mode.1 The results are troubling. Here are some recent examples: In 2000, UK retailer Sainsbury signed a seven-year US

Designing Successful Outsourcing Relationships — Selected Techniques from a Lifecycle Perspective

3.25 billion deal with Accenture to outsource its IT operations. By late 2004, the deal had been renegotiated twice, and Sainsbury had announced a 2004/05 write-off of US

IT Outsourcing Success: A Framework for Assessing Intentions and Outcomes

254 million of IT assets, and a further US

Domberger’s Theory of Contracting Applied to IT Outsourcing

218 million write-off of automated depot and supply chain IT. In October of 2005, Sainsbury announced that it was terminating the Accenture relationship and bringing IT back in-house.2 A 2004 report into 182 outsourcing deals found more than a fifth ended prematurely.3 In 2004, JP Morgan and Chase scrapped its US

Collaborating to innovate: The next phase

5 billion contract with IBM two years into a seven-year deal, concluding that much of the work could be better handled in-house.4 Also in 2004, DuPont was reported to have discovered US

Selecting and Leveraging Outsourcing Suppliers

150 million in over-charges relating to outsourcing services with its supplier.5

A Framework for Relationships in Outsourcing: Contract Management Archetypes

There has now been over a decade of information technology outsourcing (ITO) research producing a considerable volume of thoughts, theories and propositions regarding outsourcing. A search on Amazon.com will typically yield over 200 titles and Hui and Beath (2001) uncovered 143 papers and books on IT sourcing in major academic journals and the like.