Economics and Value of Information Systems


Outsourcing has been considered as an important source of innovation, nowadays. The paradigm of open innovation suggeststhat valuable ideas may occur either inside or outside the company, as in the Information Technology (IT) outsourcing. Inview of the emerging paradigm of open innovation, this paper analyzes the IT outsourcing process as an external source ofopen innovation. This research has a qualitative approach, adopting the strategy of studying multiple cases. The unit ofanalysis are three large companies, reference in their niches and aknowledged for their successful IT outsourcing practices.Results show that IT outsourcing is heavily influenced by costs reduction; however, innovation is perceived in the workingmethods resulting from the outsourcing process, being explained by the open innovation theory, since the source is external.