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Journal cover: Logistics Information Management

Logistics Information Management

ISSN: 0957-6053
Currently published as: Journal of Enterprise Information Management

Online from: 1988

Subject Area: Information and Knowledge Management

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Managing IT outsourcing: a value-driven approach to outsourcing using application service providers

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Title:Managing IT outsourcing: a value-driven approach to outsourcing using application service providers
Author(s):Lei-da Chen, (Lei-da Chen is Assistant Professor, College of Business Administration, Creighton University, Omaha, Nebraska, USA.), Khalid S. Soliman, (Khalid S. Soliman is Assistant Professor, Frank G. Zarb School of Business, Hofstra University, Hempstead, New York, USA.)
Citation:Lei-da Chen, Khalid S. Soliman, (2002) "Managing IT outsourcing: a value-driven approach to outsourcing using application service providers", Logistics Information Management, Vol. 15 Iss: 3, pp.180 - 191
Keywords:Decision making, Information technology, Outsourcing, Service
Article type:Research paper
DOI:10.1108/09576050210426733 (Permanent URL)
Publisher:MCB UP Ltd
Abstract:Organizations, both large and small, are increasingly outsourcing their applications to application service providers (ASPs) for a variety of reasons such as cost reduction, shortened time-to-market, lack of internal expertise, and risk reduction. However, the adoption of the ASP model has not been smooth sailing for many organizations, and only a few organizations have a formal approach to making ASP outsourcing decisions. Partially to fill this void, develops a value-driven approach to outsourcing using ASP based on outsourcing theories and the industry’s best practices. The value-driven approach is an adaptation and extension of Simon’s decision-making process. It is designed to guide IS managers systematically through the complex process of identifying outsourcing opportunities, evaluating the viability of using the ASP model, making outsourcing decisions, managing contractual and implementation issues, and assessing the service quality of ASP vendors. Provides important implications for research and practice. For researchers, identifies ample research opportunities in this new field. For practitioners, the value-driven approach gives them an invaluable tool to manage today’s complex information technology outsourcing.

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