DECISION-MAKING IN THE SERVICE SECTOR — COMPARISON OF INFORMATION TECHNOLOGY ACQUISITION BETWEEN PRIVATE AND PUBLIC INSTITUTES

Abstract

This study explores differences in decision making processes of public and private organizations in the service industry when they acquire information technologies (IT). The service sector has become increasingly important for economic growth and wealth in the United States. It is the fastest growing sector among the three traditional sectors: goods, manufacturing and services. Aside from the fast growing privately organized service business, public organizations have played an important role as service providers for many years. The public sector has also undergone significant changes towards privatizations. Public service organizations have started to compete with the private sector. Thus, they are forced to improve the speed and efficiency of their decision making processes. The study accomplishes this by specifically investigating IT-purchasing decisions of three private corporations, one academic institution and the United Nations. The study makes use of expert interviews done on site or on line with mid and high-level decision makers of the five organizations.