The impact of information systems on organizations and markets
Communications of the ACM
Justifying investments in new information technologies
Journal of Management Information Systems
Valuing risky projects: option pricing theory and decision analysis
Management Science
Employment outsourcing in information systems
Communications of the ACM
Information technology outsourcing transactions: process, strategies, and contracts
Information technology outsourcing transactions: process, strategies, and contracts
Outsourcing information technology, systems and services
Outsourcing information technology, systems and services
Management Science
The Company of the Future: How the Communications Revolution Is Changing Management
The Company of the Future: How the Communications Revolution Is Changing Management
Beyond the Information Systems Outsourcing Bandwagon: The Insourcing Response
Beyond the Information Systems Outsourcing Bandwagon: The Insourcing Response
A Case for Using Real Options Pricing Analysis to Evaluate Information Technology Project Investment
Information Systems Research
IT outsourcing evolution---: past, present, and future
Communications of the ACM - Wireless networking security
Information Technology Investments: Characteristics, Choices, Market Risk and Value
Information Systems Frontiers
Portfolio Replication: Its Forward-Dual Decomposition
Automation and Remote Control
Rental software valuation in IT investment decisions
Decision Support Systems
A research manifesto for services science
Communications of the ACM - Services science
Service systems, service scientists, SSME, and innovation
Communications of the ACM - Services science
The effect of service quality and partnership on the outsourcing of information systems functions
Journal of Management Information Systems
Journal of Management Information Systems - Special section: Strategic and competitive information systems
Valuing information technology infrastructures: a growth options approach
Information Technology and Management
A logistic regression framework for information technology outsourcing lifecycle management
Computers and Operations Research
Prioritizing a Portfolio of Information Technology Investment Projects
Journal of Management Information Systems
Poaching and the Misappropriation of Information: Transaction Risks of Information Exchange
Journal of Management Information Systems
Information Exploitation and Interorganizational Systems Ownership
Journal of Management Information Systems
On the Valuation of Multistage Information Technology Investments Embedding Nested Real Options
Journal of Management Information Systems
Managing Information Technology Investment Risk: A Real Options Perspective
Journal of Management Information Systems
Relative importance, specific investment and ownership in interorganizational systems
Information Technology and Management
Vendors' perspectives on trust and control in offshore information systems outsourcing
Information and Management
Journal of Management Information Systems
Comparison of Software Quality Under Perpetual Licensing and Software as a Service
Journal of Management Information Systems
Risk Management of Contract Portfolios in IT Services: The Profit-at-Risk Approach
Journal of Management Information Systems
An Economic Analysis of Policies for the Protection and Reuse of Noncopyrightable Database Contents
Journal of Management Information Systems
Journal of Management Information Systems
The Deterrent and Displacement Effects of Information Security Enforcement: International Evidence
Journal of Management Information Systems
Journal of Management Information Systems
Information Technology and the Related Services Industry: Evaluating India's Success Factors
HICSS '09 Proceedings of the 42nd Hawaii International Conference on System Sciences
Cost-Effective Investments in Customer Information Privacy
HICSS '09 Proceedings of the 42nd Hawaii International Conference on System Sciences
Journal of Management Information Systems
IT project portfolio optimization: a risk management approach to software development governance
IBM Journal of Research and Development
An Interdisciplinary Perspective on IT Services Management and Service Science
Journal of Management Information Systems
Research Note---Returns to Information Technology Outsourcing
Information Systems Research
Are there contagion effects in information technology and business process outsourcing?
Decision Support Systems
Hybrid Relational-Contractual Governance for Business Process Outsourcing
Journal of Management Information Systems
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The emergence of new service science approaches to business problems in information technology (IT) services offers new, unusually relevant insights for the senior management of vendors in this business area. This research examines how service-level agreement contract flexibility should be designed when the technological and business market environments result in volatility of demand, based on an understanding of related changes in the cost drivers that underlie IT services contracts. Our approach draws on a blend of well-known methods from financial economics-the real option pricing method and the contingent claims analysis method. In particular, our research examines a setting in which a vendor provides IT services to a client according to a prenegotiated IT services contract in the presence of demand volatility. We analyze the motivation of and value consequences for a vendor that offers the client the flexibility to opt out of the contract. For example, the client might switch to another vendor, or backsource and provide its own services internally. Our core results offer important foundational thinking for how to specify various forms of IT service-related flexibility in terms of put and call options from the point of view of an IT services vendor, so that their value and exercise timing can be estimated. We show that the client firm's demand trigger value for deciding when to backsource its IT services varies, and it depends on the degree of demand volatility as well as the usage-based fees charged by the vendor. Working from our modeling approach, we also are able to characterize the extent to which a vendor can benefit from bearing the costs of making a backsourcing flexibility option available to its client.