Outsourcing has been one of the most controversially discussed topics in the infor- mation systems (IS) management field within the last decade. While some organi- zations have been quick to adopt outsourcing, others have been slow to consider this sourcing option. Still others have evaluated outsourc ing but adopted insourcing in- stead. In other words, organizations appear to behave totally different in the sourc- ing of their IS tasks. There are no generall y accepted practices, e.g., outsourcing certain types ofIS services while keeping others in-house. The sourcing decision ap- pears to be highly dependent on the specific situation of each organization. Recognizing the unique context of each organization, this book presents an empiri- cally tested model that can be used to analyze the options of IS insourcing versus outsourcing of every organization. The model takes into account the unique IS re- quirements and the differences between insourcing and outsourcing at both the in- dividual (i.e., worker) and the organizational level.

From the Back Cover

The field of Information Systems (IS) outsourcing has drawn considerable attention among scientists and practitioners for the past fifteen years. The present book analyses why organizations insource or outsource IS functions - - specifically the development and maintenance of software applications. Concepts from transaction cost theory, resource-based theory, incomplete contracts theory, the theory of planned behaviour, and cross-cultural research are integrated into a coherent framework that recognizes the economic, strategic, and social dimension of the IS sourcing decision. This framework is specified in a research model and empirically tested across countries (Germany versus USA), industries (Machinery versus Finance) and IS functions (Application Software Development versus Maintenance) using the partial least squares (PLS) approach of structural equation modelling. The book thereby provides theoretically and empirically grounded insights into the reasons and implications of the IS sourcing decision.

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