Journal of Information Technology
Document Type
Research Article
Abstract
This paper views information technology (IT) outsourcing decisions as classical make-or-buy decisions. In essence, these decisions consist of finding an acceptable balance between benefits and risks. The principal contribution of this paper is the development of a model that describes the relationship between outsourcing benefits and risks. It draws on work from two streams of research: transaction cost theory and modern financial theory. The model can assist managers in determining whether outsourcing or in sourcing is a better choice for a particular IT function and in evaluating and comparing competing vendor proposals. The model can also serve as a framework for future research in IT governance issues.
DOI
10.1177/026839629501000404
Recommended Citation
Jurison, Jaak
(1995)
"The Role of Risk and Return in Information Technology Outsourcing Decisions,"
Journal of Information Technology: Vol. 10:
Iss.
4, Article 4.
DOI: 10.1177/026839629501000404
Available at:
https://aisel.aisnet.org/jit/vol10/iss4/4