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This research applies transaction cost economics to conceptually investigate longitudinal change of IT outsourcing costs, and its impact on managerial sourcing decisions. I propose that the change of, and underestimation of actual costs contribute to IT insourcing. Implications and recommendations for future research are provided.

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Pulling the Outside In: A Transactional Cost Perspective on IT Insourcing

This research applies transaction cost economics to conceptually investigate longitudinal change of IT outsourcing costs, and its impact on managerial sourcing decisions. I propose that the change of, and underestimation of actual costs contribute to IT insourcing. Implications and recommendations for future research are provided.