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Information Technology Outsourcing in Large Companies in Sweden: A Perspective on Risks, Relationships and Success Factors
Stockholms universitet, Samhällsvetenskapliga fakulteten, Institutionen för data- och systemvetenskap. (IT Management)
2017 (Engelska)Doktorsavhandling, sammanläggning (Övrigt vetenskapligt)
Abstract [en]

This thesis investigates large private companies in Sweden that have outsourced their information technology (IT). A considerable proportion of IT outsourcing (ITO) is unsuccessful. For IT service buyers, this could cause IT that does not fully work, entailing problems with the network, application, infrastructure and security, with serious consequences such as a loss of customers’ confidence and significantly increased costs. Therefore, the main research goal was to analyse and define ways to improve ITO for buyer organizations. This main research goal was accomplished through three research goals that are the followings: 1) To develop a method for risk assessment in IT outsourcing; 2) To identify the important factors in IT outsourcing relationship; and 3) To identify the success factors in IT outsourcing.                      

The research strategies applied in conducting this research were design science research and survey research. To achieve the first research goal, a method was developed for assessing the ITO risks, including support for mitigating these risks. This method could help both researchers and practitioners in estimating the ITO risks and in this way improve ITO. An application based on the developed method was used to facilitate the testing of this method by several ITO decision makers in large companies concerning its usability, correctness and functionality. Moreover, a study was performed to explore ITO decision makers’ acceptance of the developed method and their use of it for assessing the ITO risks.            

The second research goal investigated how to improve service buyers’ ITO relationship with their providers. A well-working ITO relationship is a critical determinant of successful ITO and is relevant to the whole ITO life cycle. This research goal was achieved by identifying and analysing the most important factors in ITO relationships, including a prioritized list of those factors that are highly recommended for use in creating and maintaining a good ITO relationship.                      

The third research goal examined how to improve ITO by identifying and prioritizing the success factors (SFs) in ITO. This research identified the ITO SFs in large companies and provided a prioritized list of them to be applied in these companies with a description of the value that they could create from implementation during the ITO life cycle. Moreover, the SFs identified in large companies were compared with those identified in medium-sized companies, which could give an indication to the researchers in this field that company size matters in regard to the implementation order of the identified SFs.              

In summary, the research presented in this thesis contributes with: 1) a method for assessing the risks of outsourcing IT and, in the case that IT has been outsourced, suggested ways to mitigate them; 2) the important factors that could improve ITO relationships and 3) a prioritized list of success factors that could improve IT outsourcing.

Abstract [sv]

Denna avhandling undersöker stora privata företag i Sverige som har outsourcat sin IT verksamhet. Som vi uppmärksammade har en stor del av IT-outsourcingen (ITO) misslyckats. För köparen av IT-tjänsten kan det leda till bristande IT funktionalitet med allvarliga konsekvenser som i värsta fall leder till förlorade kunder och betydande kostnadsökningar. Därför är det övergripande forskningsmålet är att analysera och fastställa hur ITO:n för köparen av IT tjänsten kan förbättras. För att lösa det övergripande forskningsmålet forskningen undersökte: 1) Utvecklingen av en metod för att bedöma riskerna med IT-outsourcing; 2) Identifiering av de viktiga faktorerna inom IT-outsourcingsrelationer; och 3) Identifiering av en lista över framgångsfaktorer i IT-outsourcing.

De använda forskningsstrategierna för att genomföra forskningen var ”design science research" och kartläggning. För att uppnå först huvudforskningsmålet, har en metod tagits fram för att bedöma riskerna och vägleda hur man kan minska dem. Den här metoden kan hjälpa både forskare och de som utövar IT-outsourcing med att bedöma ITO-riskerna och på så sätt förbättra sina IT-outsourcing. 

En programvara baserad på den metoden har utvecklats för att underlätta testningen av metoden vilket har genomförts med IT beslutsfattare på stora organisationer, beträffande användbarhet, korrekthet och funktionalitet. Dessutom har en studie utförts för att bedöma om programvaran kan accepteras av IT beslutsfattare och få reda på om de skulle använda metoden för att bedöma ITO riskerna.

Det andra forskningsmålet har undersökt hur köparna av den outsourcade IT-tjänsten kan förbättra relationen med sina leverantörer. En bra ITO-relation är en avgörande faktor för en framgångsrik ITO och den är viktig för hela livscykeln. Forskningsmålet har uppnåtts genom analys för att hitta de viktigaste faktorerna ITO-relationsfaktorer, som studien rekommenderar för att skapa och underhålla en bra ITO relation.

Det tredje forskningsmålet har undersökt hur ITO kan förbättras genom att identifiera och prioritera framgångsfaktorerna i ITO. Studien har identifierat framgångsfaktorerna i stora företag och tagit fram en lista med prioriterade framgångsfaktorer som bör implementeras i de undersökta företagen. Dessutom så har nyttan av dessa framgångsfaktorer beskrivits under ITO livscykeln. Dessutom har de identifierade framgångsfaktorerna från stora företag jämförts med framgångsfaktorerna som har identifierats för medelstora företag. Denna jämförelse ger en indikation till forskarna på det här området att prioriteringen av framgångsfaktorerna är beroende av företagsstorlek.

Sammanfattningsvis, den beskrivna forskningen i den här uppsatsen bidrar med: 1) En metod för att bedöma risker och förslag på hur minska dessa risker; 2) En lista med de viktiga faktorerna för att förbättra ITO relationen inom IT-outsourcing och; 3) En prioriterad lista av framgångsfaktorer som kan förbättra IT outsourcing.

Ort, förlag, år, upplaga, sidor
Stockholm: Department of Computer and Systems Sciences, Stockholm University , 2017. , 134 s.
Serie
Report Series / Department of Computer & Systems Sciences, ISSN 1101-8526 ; 17-002
Nyckelord [en]
IT outsourcing, risk factors, important factors, ITO relationships, success factors, transaction cost theory, IT outsourcing decision makers, design science research, survey research, large companies, private companies
Nationell ämneskategori
Systemvetenskap, informationssystem och informatik
Forskningsämne
data- och systemvetenskap
Identifikatorer
URN: urn:nbn:se:su:diva-141707ISBN: 978-91-7649-801-9 (tryckt)ISBN: 978-91-7649-802-6 (digital)OAI: oai:DiVA.org:su-141707DiVA: diva2:1088520
Disputation
2017-06-12, L50, NOD-huset, DSV, Borgarfjordsgatan 12, Kista, 13:00 (Engelska)
Opponent
Handledare
Tillgänglig från: 2017-05-10 Skapad: 2017-04-12 Senast uppdaterad: 2017-05-11Bibliografiskt granskad
Delarbeten
1. Risk Factors in IT Outsourcing and the Theories Decision Makers Use to Resolve Them
Öppna denna publikation i ny flik eller fönster >>Risk Factors in IT Outsourcing and the Theories Decision Makers Use to Resolve Them
2013 (Engelska)Ingår i: International Journal of Social and Organizational Dynamics in IT (IJSODIT), ISSN 2155-6334, Vol. 3, nr 2, 41-54 s., 3Artikel i tidskrift (Refereegranskat) Published
Abstract [en]

In this paper the Risk Factors (RFs) in IT Outsourcing (ITO) theories from a service buyer perspective are explored. A comparative study about how Transaction Cost Theory (TCT), Core Competency Theory (CCT) and Agency Theory (AT) cover the RFs has been performed. A framework describing, how the theories cover the RFs has been developed and tested using a case study research methodology. The interviews with companies for testing the framework have been used to get an indication about which ITO theories the decision makers are using in their ITO. This study shows that TCT fully covers all RFs, AT covers almost all and CCT has the lowest coverage. The theories, which are used by the ITO decision makers, could only partially be answered. Risk handling could not be entirely mapped to the theories. Risk and risk mitigation were the main concerns for some of the interviewees, CCT for some others. This study recommends using both TCT and CCT for a successful ITO.

Nyckelord
Agency Theory (AT), Core Competency Theory (CCT), IT Outsourcing (ITO), Risk Factors (RFs), Transaction Cost Theory (TCT)
Nationell ämneskategori
Systemvetenskap, informationssystem och informatik
Forskningsämne
data- och systemvetenskap
Identifikatorer
urn:nbn:se:su:diva-95626 (URN)10.4018/ijsodit.2013040103 (DOI)
Tillgänglig från: 2013-10-31 Skapad: 2013-10-31 Senast uppdaterad: 2017-05-11Bibliografiskt granskad
2. Assessing the risk exposure in IT outsourcing for large companies
Öppna denna publikation i ny flik eller fönster >>Assessing the risk exposure in IT outsourcing for large companies
2011 (Engelska)Ingår i: International Journal of Information Technology and Management, ISSN 1461-4111, E-ISSN 1741-5179, Vol. 10, nr 1, 24-44 s.Artikel i tidskrift (Refereegranskat) Published
Abstract [en]

The decision process for companies to outsource information technology (IT) or not is a substantial business change and in many cases the competence to take such decisions is limited and has major consequences for the company's future performance. In this context, the paper is presenting the design of an information technology outsourcing (ITO) tool that includes a procedure based on transaction cost theory (TCT) for assessing the risk exposure in ITO. The ITO tool presented in this paper is a useful and effective instrument for the IT decision-makers in support of decisions to outsource IT or not. In the development of the ITO tool, we have approached two large companies in Sweden with more than 20 years experiences in ITO that helped us in the improvement and evaluation of the usability and effectiveness of this tool.

Nyckelord
information technology outsourcing, IT outsourcing tools, transaction cost theory, TCT, risk exposure, IT decision making, large companies, Sweden, risk assessment
Nationell ämneskategori
Systemvetenskap
Forskningsämne
data- och systemvetenskap
Identifikatorer
urn:nbn:se:su:diva-54459 (URN)10.1504/IJITM.2011.037760 (DOI)
Tillgänglig från: 2011-02-02 Skapad: 2011-02-02 Senast uppdaterad: 2017-05-11Bibliografiskt granskad
3. User Acceptance of a Software Tool for Decision Making in IT Outsourcing: A Qualitative Study in Large Companies from Sweden
Öppna denna publikation i ny flik eller fönster >>User Acceptance of a Software Tool for Decision Making in IT Outsourcing: A Qualitative Study in Large Companies from Sweden
2010 (Engelska)Ingår i: Knowledge Management, Information Systems, E-Learning, and Sustainability Research: Proceedings, Part I / [ed] Miltiadis D. Lytras, Patricia Ordonez De Pablos, Adrian Ziderman, Alan Roulstone, Hermann Maurer, Jonathan B. Imber, Springer, 2010, 277-288 s.Konferensbidrag, Publicerat paper (Refereegranskat)
Abstract [en]

Decisions for IT outsourcing are very complex and needs to be supported by considerations based on many (multiple) criteria. In order to facilitate the use of a specific tool by a decision-maker in IT outsourcing, we need to find out whether such a tool for this purpose will be accepted or rejected or what improvements must be added to this tool to be accepted by some IT decision makers in large companies from Sweden.

Ort, förlag, år, upplaga, sidor
Springer, 2010
Serie
Communications in Computer and Information Science, ISSN 1865-0929, E-ISSN 1865-0937 ; 111
Nyckelord
IT outsourcing, decision makers, ITO tool, user acceptance, decision
Nationell ämneskategori
Systemvetenskap
Forskningsämne
data- och systemvetenskap
Identifikatorer
urn:nbn:se:su:diva-52038 (URN)10.1007/978-3-642-16318-0_31 (DOI)978-3-642-16317-3 (ISBN)978-3-642-16318-0 (ISBN)
Konferens
Third World Summit on the Knowledge Society, WSKS 2010, Corfu, Greece, September 22-24, 2010
Tillgänglig från: 2011-01-12 Skapad: 2011-01-12 Senast uppdaterad: 2017-05-11Bibliografiskt granskad
4. Important Factors in IT Outsourcing Relationship, a Model Development and Verification in Major National Companies
Öppna denna publikation i ny flik eller fönster >>Important Factors in IT Outsourcing Relationship, a Model Development and Verification in Major National Companies
2012 (Engelska)Ingår i: AMCIS 2012 Proceedings, 2012Konferensbidrag, Publicerat paper (Refereegranskat)
Abstract [en]

This paper explores which factors contribute to a strong, IT Outsourcing (ITO) relationship. Therefore, a conceptual model has been developed and tested in four Major National Companies (MNCs), who have outsourced their IT and additionally, their IT service providers have been studied. All the involved contracts have multibillion SEK (the Swedish currency krona) turnovers and belong to top 100 larges MNCs in Sweden. A case study research method has been used. The novelty in the model is to have contract management and expectation management as the most important factors that influence a good ITO relationship strongly supported by communication and conflict and conflict resolution. Trust, commitment, and cooperation received lower scores. We believe that this information could help IT decision makers to improve their relationship with the service buyer or a provider. This research supports the propositions that an effective relationship improves the contract management and strengthens the ITO success.

Nyckelord
IT Outsourcing, Multinational Companies, IT Outsourcing Relationships
Nationell ämneskategori
Systemvetenskap, informationssystem och informatik
Forskningsämne
data- och systemvetenskap
Identifikatorer
urn:nbn:se:su:diva-79523 (URN)978-0-615-66346-3 (ISBN)
Konferens
18th Americas Conference on Information Systems (AMCIS 2012), Seattle, Washington, August 9-11, 2012
Tillgänglig från: 2012-09-05 Skapad: 2012-09-05 Senast uppdaterad: 2017-05-11Bibliografiskt granskad
5. How Do Critical Success Factors Contribute to a Successful IT Outsourcing: A Study of Large Multinational Companies
Öppna denna publikation i ny flik eller fönster >>How Do Critical Success Factors Contribute to a Successful IT Outsourcing: A Study of Large Multinational Companies
2013 (Engelska)Ingår i: Journal of Information Technology Theory and Application, ISSN 1552-6496, E-ISSN 1532-4516, Vol. 14, nr 1, 17-43 s., 3Artikel i tidskrift (Refereegranskat) Published
Abstract [en]

The increasing competition on the market means that multinational companies (MNCs) as well as many otherorganizations must take advantage of business improvements. This research addresses the critical success factors(CSFs) for the service receiver of IT outsourcing (ITO). It delivers a limited number CSFs that, with a correctimplementation, can deliver favorable results that are necessary for an efficient ITO. These 11 CSFs, are describedin detail, and a critical study is performed to identify the value they could create. In addition, the way theimplementation of the provided CSF could mitigate the ITO risk has been analyzed using transaction cost theory. Apriority list describing the order in which the CSFs should be implemented has been developed and enhanced with arecommendation as to when in the ITO life cycle each CSF should be implemented. A case study research with twoMNCs with more than 20 years’ experience in ITO has been used to prove the results.

Nyckelord
Information Technology Outsourcing, Critical Success Factors, Key Success Factors, IT Decision Makers, Large Multinational Companies, Transaction Cost Theory.
Nationell ämneskategori
Systemvetenskap, informationssystem och informatik
Forskningsämne
data- och systemvetenskap
Identifikatorer
urn:nbn:se:su:diva-141646 (URN)
Tillgänglig från: 2017-04-10 Skapad: 2017-04-10 Senast uppdaterad: 2017-05-11Bibliografiskt granskad
6. IT Outsourcing Success Factors: A Study of Large and Medium-Sized Companies
Öppna denna publikation i ny flik eller fönster >>IT Outsourcing Success Factors: A Study of Large and Medium-Sized Companies
2015 (Engelska)Ingår i: Modern Techniques for Successful IT Project Management / [ed] Shang Gao, Lazar Rusu, Hershey: Business Science Reference , 2015, nr 2015, 183-199 s.Kapitel i bok, del av antologi (Refereegranskat)
Abstract [en]

In this chapter, the Success Factors (SFs) for IT Outsourcing (ITO) are explored. The research literature has a bias towards large companies, neglecting medium-sized companies. Moreover, no comparative studies regarding the SFs were found related to the size of companies. These circumstances force medium-sized buyers to turn to practitioner literature, which is dominated by guidelines produced by the providers. Therefore, this chapter identifies the research problem: the lack of knowledge about ITO SFs for medium size companies, including whether SFs for large companies, are applicable for medium-sized ones as well. The used case study research shows that medium-sized companies should use the SFs from large companies. However, 2 out of 11 studied SFs have better efficiency for large companies. This result helps medium-sized companies' ITO decision makers understand the SFs of ITO and thus closes the research gap. Implementing the right SFs should improve the ITO performance.

Ort, förlag, år, upplaga, sidor
Hershey: Business Science Reference, 2015
Serie
Advances in IT personnel and project management book series
Nationell ämneskategori
Systemvetenskap, informationssystem och informatik
Forskningsämne
data- och systemvetenskap
Identifikatorer
urn:nbn:se:su:diva-114321 (URN)10.4018/978-1-4666-7473-8.ch009 (DOI)9781466674738 (ISBN)9781466674745 (ISBN)
Tillgänglig från: 2015-02-27 Skapad: 2015-02-27 Senast uppdaterad: 2017-08-30Bibliografiskt granskad

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