The effect of service quality and partnership on the outsourcing of information systems functions
Journal of Management Information Systems
Conceptual framework on risk management in IT outsourcing projects
WSEAS Transactions on Information Science and Applications
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The bandwagon effect of Kodak and IBM agreement has lead to more organizations to involve in IT outsourcing. Even though that is the case, IT outsourcing is not a panacea. Many researchers have been trying to come out with ways to effectively manage IT outsourcing. Some of them are anecdote, some with theoretical foundations and some are supported with experimental results. Still, there is a need to explore what is currently being a practice so as to identify the weaknesses and vulnerabilities. As a developing country, the acceptance towards the effectives of theory to support IT outsourcing remains a questions. Therefore, besides assessing best practices, this paper also reviews the practices of three theories namely Transaction Cost Theory, Relational Exchange Theory and Agent Theory. In order to achieve the objective, exploratory, qualitative research method was used in this study. Nine organizations were selected as a sample. The result of the research shows that even though there are proper guidelines available, some of the organizations omit some important steps. More shocking, some organizations deny the importance of adapting theories in current IT outsourcing practices. As a consequence, some organizations encountered difficulty in managing their projects. For future works, the weaknesses and vulnerability of current practices will then be enhanced and a framework for managing IT Outsourcing will then be proposed.