IS outsourcing as dynamic phenomena: case studies of quasi-outsourcing in Japan

Authors:
Seigo Matsuno;Yasuo Uchida;Shin-Ya Tagawa;Takao Ito
Affiliations:
Dept. of Business Administration, Ube National College of Technology, Tokiwadai Ube City, Yamaguchi, Japan;Dept. of Business Administration, Ube National College of Technology, Tokiwadai Ube City, Yamaguchi, Japan;Dept. of Business Administration, Ube National College of Technology, Tokiwadai Ube City, Yamaguchi, Japan;New Jersey Institute of Technology
Venue:
CEA'09 Proceedings of the 3rd WSEAS international conference on Computer engineering and applications
Year:
2009

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Abstract

A characteristic feature of the outsourcing of information systems (IS) in Japan is the use of quasi-outsourcing primarily by large-scale firms. In most such cases, an IS subsidiary is established by spinning off the firm's own information systems department. However, in recent years, there have been many firms which strengthen capital alliances between their IS subsidiary and external vendors, or completely sell it. On the other hand, there is growing diversification in the management of IS subsidiaries, such as firms forcing their IS subsidiaries to withdraw from external sales business, or going further and integrating the IS subsidiary back into the company again (i.e., backsourcing). This research employs case method in order to investigate the factors which have an effect on these IS subsidiary arrangements. To achieve that, we first review relevant early studies. Then we present case studies of two chemical manufacturing companies in Japan. And finally, we propose some theses based on the implications derived from the case studies.