Article

Does IT outsourcing create firm value?

Authors:

Gillian YeoAuthors Info & Claims

SIGMIS CPR '07: Proceedings of the 2007 ACM SIGMIS CPR conference on Computer personnel research: The global information technology workforce

Pages 87 - 91

https://doi.org/10.1145/1235000.1235020

Published: 19 April 2007 Publication History

Abstract

The continued growth of IT outsourcing seems to reflect a fundamental belief among businesses that outsourcing creates wealth and delivers value to companies that outsource. Such a belief is supported by theories of production and transaction cost economies. These theories suggest that IT outsourcing should indeed generate greater wealth and create greater value for firms that outsource vis-à-vis firms that prefer to manage and operate their IT in-house. Yet, to date, there is little objective evidence to show how IT outsourcing actually does create value to companies. Drawing on transaction and production cost economies, we argue that IT outsourcing should create value for firms. We test our hypothesis using an event study of 420 IT outsourcing announcements by U.S. public listed companies during the period 1989-1999. Results showed that IT outsourcing did create value for firms in terms of positive short-term stock market returns.

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Cited By

Ali SHuang JKhan SLi H(2020)A framework for modelling structural association amongst barriers to software outsourcing partnership formation: An interpretive structural modelling approachJournal of Software: Evolution and Process10.1002/smr.2243Online publication date: 13-Jan-2020
https://doi.org/10.1002/smr.2243
Ali SLi HKhan SAbrar MZhao Y(2020)Practitioner's view of barriers to software outsourcing partnership formationJournal of Software: Evolution and Process10.1002/smr.223332:5Online publication date: 20-Apr-2020
https://dl.acm.org/doi/10.1002/smr.2233
Ali SUllah NAbrar MMajeed MUmar MHuang J(2019)Barriers to Software Outsourcing Partnership Formation: An Exploratory AnalysisIEEE Access10.1109/ACCESS.2019.29499197(164556-164594)Online publication date: 2019
https://doi.org/10.1109/ACCESS.2019.2949919
Show More Cited By

Index Terms

Does IT outsourcing create firm value?
1. Social and professional topics
  1. Professional topics
    1. Management of computing and information systems

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Published In

cover image ACM Conferences

SIGMIS CPR '07: Proceedings of the 2007 ACM SIGMIS CPR conference on Computer personnel research: The global information technology workforce

April 2007

246 pages

ISBN:9781595936417

DOI:10.1145/1235000

General Chairs:
Fred Niederman
St. Louis University, USA
,
Mary Sumner
Southern Illinois University Edwardsville, USA
,
Program Chairs:
Diane Lending
James Madison University, USA
,
Chelley Vician
Michigan Technological University, USA

Copyright © 2007 ACM.

Permission to make digital or hard copies of all or part of this work for personal or classroom use is granted without fee provided that copies are not made or distributed for profit or commercial advantage and that copies bear this notice and the full citation on the first page. Copyrights for components of this work owned by others than ACM must be honored. Abstracting with credit is permitted. To copy otherwise, or republish, to post on servers or to redistribute to lists, requires prior specific permission and/or a fee. Request permissions from [email protected]

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Publication History

Published: 19 April 2007

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SIGMIS-CPR07: 2007 Computer Personnel Doctoral Consortium and Research Conference

April 19 - 21, 2007

Missouri, St. Louis, USA

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Overall Acceptance Rate 300 of 480 submissions, 63%

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Cited By

Ali SHuang JKhan SLi H(2020)A framework for modelling structural association amongst barriers to software outsourcing partnership formation: An interpretive structural modelling approachJournal of Software: Evolution and Process10.1002/smr.2243Online publication date: 13-Jan-2020
https://doi.org/10.1002/smr.2243
Ali SLi HKhan SAbrar MZhao Y(2020)Practitioner's view of barriers to software outsourcing partnership formationJournal of Software: Evolution and Process10.1002/smr.223332:5Online publication date: 20-Apr-2020
https://dl.acm.org/doi/10.1002/smr.2233
Ali SUllah NAbrar MMajeed MUmar MHuang J(2019)Barriers to Software Outsourcing Partnership Formation: An Exploratory AnalysisIEEE Access10.1109/ACCESS.2019.29499197(164556-164594)Online publication date: 2019
https://doi.org/10.1109/ACCESS.2019.2949919
Ali SHongqi LAbrar M(2018)Systematic Literature Review of Critical Barriers to Software Outsourcing Partnership2018 5th International Multi-Topic ICT Conference (IMTIC)10.1109/IMTIC.2018.8467254(1-8)Online publication date: Apr-2018
https://doi.org/10.1109/IMTIC.2018.8467254
Ali SLi HKhan SZhao YLi L(2018)Fuzzy Multi Attribute Assessment Model for Software Outsourcing Partnership FormationIEEE Access10.1109/ACCESS.2018.28717106(55431-55461)Online publication date: 2018
https://doi.org/10.1109/ACCESS.2018.2871710
Ali SHongqi LKhan SZhongguo YLiping Z(2017)Success Factors for Software Outsourcing Partnership Management: An Exploratory Study Using Systematic Literature ReviewIEEE Access10.1109/ACCESS.2017.27649465(23589-23612)Online publication date: 2017
https://doi.org/10.1109/ACCESS.2017.2764946
Ali SKhan S(2016)Software outsourcing partnership modelJournal of Systems and Software10.1016/j.jss.2016.03.069117:C(402-425)Online publication date: 1-Jul-2016
https://dl.acm.org/doi/10.1016/j.jss.2016.03.069
Ali SKhan S(2014)Critical Success Factors for Software Outsourcing Partnership (SOP)Proceedings of the 2014 IEEE 9th International Conference on Global Software Engineering10.1109/ICGSE.2014.12(153-162)Online publication date: 18-Aug-2014
https://dl.acm.org/doi/10.1109/ICGSE.2014.12
Gorla NSomers T(2014)The impact of IT outsourcing on information systems successInformation & Management10.1016/j.im.2013.12.00251:3(320-335)Online publication date: Apr-2014
https://doi.org/10.1016/j.im.2013.12.002
Lee SHan J(2012)Impact of Vendor Selection on Firms' IT OutsourcingJournal of Global Information Management10.4018/jgim.201204010220:2(25-43)Online publication date: 1-Apr-2012
https://dl.acm.org/doi/10.4018/jgim.2012040102
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