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How Do Critical Success Factors Contribute to a Successful IT Outsourcing: A Study of Large Multinational Companies
Stockholm University, Faculty of Social Sciences, Department of Computer and Systems Sciences.
Stockholm University, Faculty of Social Sciences, Department of Computer and Systems Sciences.ORCID iD: 0000-0001-6545-3295
2013 (English)In: Journal of Information Technology Theory and Application, ISSN 1552-6496, E-ISSN 1532-4516, Vol. 14, no 1, 17-43 p., 3Article in journal (Refereed) 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.

Place, publisher, year, edition, pages
2013. Vol. 14, no 1, 17-43 p., 3
Keyword [en]
Information Technology Outsourcing, Critical Success Factors, Key Success Factors, IT Decision Makers, Large Multinational Companies, Transaction Cost Theory.
National Category
Information Systems
Research subject
Computer and Systems Sciences
Identifiers
URN: urn:nbn:se:su:diva-141646OAI: oai:DiVA.org:su-141646DiVA: diva2:1087999
Available from: 2017-04-10 Created: 2017-04-10 Last updated: 2017-05-11Bibliographically approved
In thesis
1. Information Technology Outsourcing in Large Companies in Sweden: A Perspective on Risks, Relationships and Success Factors
Open this publication in new window or tab >>Information Technology Outsourcing in Large Companies in Sweden: A Perspective on Risks, Relationships and Success Factors
2017 (English)Doctoral thesis, comprehensive summary (Other academic)
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.

Place, publisher, year, edition, pages
Stockholm: Department of Computer and Systems Sciences, Stockholm University, 2017. 134 p.
Series
Report Series / Department of Computer & Systems Sciences, ISSN 1101-8526 ; 17-002
Keyword
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
National Category
Information Systems
Research subject
Computer and Systems Sciences
Identifiers
urn:nbn:se:su:diva-141707 (URN)978-91-7649-801-9 (ISBN)978-91-7649-802-6 (ISBN)
Public defence
2017-06-12, L50, NOD-huset, DSV, Borgarfjordsgatan 12, Kista, 13:00 (English)
Opponent
Supervisors
Available from: 2017-05-10 Created: 2017-04-12 Last updated: 2017-05-11Bibliographically approved

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