Strategic Sourcing of Information Systems: : Perspectives and Practices

Citation

Martin, A. (1998), "Strategic Sourcing of Information Systems: : Perspectives and Practices", Information Technology & People, Vol. 11 No. 2, pp. 159-161. https://doi.org/10.1108/itp.1998.11.2.159.3

Leslie Willcocks and Mary Lacity have managed their contribution to the outsourcing debate very well, with a number of key publications addressing leading issues of theory and practice over the past decade. These include two notable earlier volumes in this Wiley Series in Information Systems, first exposing the myths of the early outsourcing bandwagon, then debating the insourcing alternative. Outsourcing has been shown to be a complex issue with many dimensions and variables and no single best approach, even for a particular organisation and time. It is an issue which goes to the heart of the tensions of IS management. The latest title raises hopes for consolidated and integrated theory about the key questions of identifying appropriate sourcing decisions and the management of outsourcing contracts.

The book presents a variety of contributions covering a broad span of the theoretical‐practical spectrum. There is also evident a wide range of methodological rigour, from chapters discussing the nature of theory and research method themselves to chapters which justify their approach weakly if at all. Some contributions bring a number of useful insights to the debate; others seem to rehearse theories from early in the development of the subject. Research approaches include survey and case, both longitudinal and snapshot, and theoretical argument. Case research is frequently advocated as the most appropriate empirical method, since it allows the researcher to capture a richer perspective on the many variables influencing the outsourcing decisions and evaluations. Many cases are presented, including examples from several continents, including both successes and failures.

The introduction (Willcocks and Lacity) and first chapter (Clark et al.) provide good overviews, and the chapters by Grover et al. and de Loof which worked towards a contingency model for outsourcing decisions were of interest. There are numerous references to Williamson’s transaction cost theory (TCT), and variants of it, and these are explained and applied quite well, if repeatedly, to the outsourcing issue. TCT is also developed to include the effects of social control and communications across the boundary (Scarbrough) and alliances between agents (McLellan et al.). Perhaps TCT is over‐emphasised since it offers only one of many perspectives to the decision about when outsourcing is appropriate. The contribution from Game Theory (Elitzur and Wensley), for instance, presents a refreshing alternative insight, which is presented in a readable non‐mathematical manner. It offers insights about player actions and bidding strategies, and the value of information gained about and given to the other party in the bidding process. Game theory also tackles issues on the important notion of risk, which is addressed further in Jurison’s chapter on risk and return. The chapters on game theory, external acquisition of knowledge and managing of partnering development have an emphasis on people which is likely to be of interest to readers of this journal. I found limited value added by the chapters on offshore development of software, setting up outsourced IT service companies, views of America’s most effective IS users and outsourcing strategy in private and public sector contexts.

The book’s stated target is both academics and practitioners. It is a collection of papers and not a textbook. It is a very focused and specialised volume and as such it is most likely to be a useful resource for academic research. Chapters are individually and thoroughly referenced for follow‐up work. Although it has some helpful insights for practitioners I feel that only outsourcing specialists would be prepared to dig for these. The book in general avoids being over‐prescriptive, recognising that each situation is different. Instead it offers discussion on relevant issues and theories, and will enable a more informed decision than articles in the popular press and advice from interested parties.

If an integrated theory of outsourcing was a reasonable expectation of this book, there is a slight disappointment. There has been some effort to link chapters, and the introduction presents a good summary of the rest of the book, but overall the book fails to integrate the theory it presents. The reader is left with an enormous job to do this, although this might be feasible with the focus of a particular case. The editors themselves warn of “dangers of theoretical confusion and complexity”. Thus the key question of “where and how can business leverage be achieved through utilising the rapidly developing market of IT services?” is addressed only in a round about way. As a contribution to Wiley’s series promoting the intellectual development of the IS discipline, the book has a place but misses an opportunity in terms of the integration of theory. In a world of competing and complementary theories, perhaps it will take more time for further practice and reflection for a consolidated theory to emerge.