Domestic and Global Outsourcing Practices of America's Most Effective is Users

Abstract

With increasing cost-reduction pressures, outsourcing – selectively turning over some information systems functions and processing services to a subcontractor – has emerged in the last few years as an important option for chief information officers (CIOs). In this paper we present the results of our exploratory, empirical research into the practices and views of IS outsourcing. The research methodology of a questionnaire-based mail survey was used. The survey sample consisted of companies that were identified as the most effective users of IS by Computerworld magazine. The paper provides empirical evidence on the extent to which outsourcing of various IS functions is being practised, and the views of CIOs concerning the advantages, disadvantages and motives of IS outsourcing. The paper also sheds light on the relationship between various firm characteristics and IS outsourcing, and investigates the economics of, and decision-making processes in, IS outsourcing. There is a special focus on the comparison of USA-based and global IS outsourcing.