Information Systems Outsourcing; Myths, Metaphors, and Realities
Information Systems Outsourcing; Myths, Metaphors, and Realities
IT outsourcing evolution---: past, present, and future
Communications of the ACM - Wireless networking security
Real Options and IT Platform Adoption: Implications for Theory and Practice
Information Systems Research
Journal of Management Information Systems
Journal of Management Information Systems
The effect of service quality and partnership on the outsourcing of information systems functions
Journal of Management Information Systems
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Information technology (IT) outsourcing is one change management issue facing organisations in today's rapidly changing business environment. Due to its very nature of uncertainty, it is critical for companies to manage and mitigate the high risks associated with change management including the task of vendor selection in IT outsourcing practices. In this study, we explore a two-stage vendor selection approach to IT outsourcing using real options analysis (ROA). In the first stage, the client engages a vendor for a pilot project and observes the outcome. Using this observation, the client decides either to continue the project to the second stage based upon pre-specified terms or to terminate the project. A case example of outsourcing the development of supply chain management information systems (SCMSs) for a logistics firm is also presented in the paper. Our findings suggest that ROA is a viable valuation technique for IT outsourcing.