Research has reported mixed relationships between different Information Technology Outsourcing (ITO) (e.g. ‘total’ and ‘selective’) approaches and organizational performance. Most ITO research takes a reductionist approach, which only examines unidirectional linear relationships between specific ITO attributes and organizational performance. Configurational theory as an alternative approach has been suggested. This study employs a theory-driven and empirically-grounded list of attributes to construct ITO configurations. Then it uses a set-theoretic method to empirically examine the ITO configuration-organizational outcome relationship. Data were collected through a survey administered to the members of the International Association of Outsourcing Professionals (IAOP). Our findings suggest five different ITO configurations that lead to cost reduction, capability enhancement, and innovation. The theoretical foundation for ITO research and configurational approach is reviewed next. We then suggest five key attributes of ITO configurations and three common organizational outcomes. Thereafter, we present our findings and put forth several implications for ITO studies.
Bui, Quang; Adelakun, Olayele; and Leo, Ezekiel, "Information Technology Outsourcing Configurations And Organizational Outcomes" (2018). UK Academy for Information Systems Conference Proceedings 2018. 26.