IMPACTS OF INFORMATION TECHNOLOGY (IT) OUTSOURCING ON ORGANIZATIONAL PERFORMANCE: A FIRM-LEVEL EMPIRICAL ANALYSIS
We investigate the impact of Information Technology (IT) outsourcing on firm performance from
several dimensions, including changes in labor productivity, improvements in financial and
operational performance variables, and stock market valuation of IT outsourcing initiatives as
measured by Tobin’s q. While our main objective is to better understand the economics of IT
outsourcing, we also aim to contribute to the literature on the business value of IT in general. Our
research contributes to the relevant literature from the following perspectives: (i) the change in the
performance levels of firms due to IT outsourcing is measured against that of firms not outsourcing at
all, (ii) panel data regression model is utilized in order to capture both cross-sectional and time-series
differences among firms, (iii) the diversity of IT outsourcing initiatives is explicitly considered in the
model, and (iv) a comprehensive data set covering the period between 1984 and 2007 is used..
Ozcelik, Yasin and Altinkemer, Kemal, "IMPACTS OF INFORMATION TECHNOLOGY (IT) OUTSOURCING ON ORGANIZATIONAL PERFORMANCE: A FIRM-LEVEL EMPIRICAL ANALYSIS " (2009). ECIS 2009 Proceedings. 321.