A multi-level investigation of information technology outsourcing

Authors:
Benoit A. Aubert;Jean-FrançOis Houde;Michel Patry;Suzanne Rivard
Affiliations:
HEC Montreal, 3000 Chemin Côte-Sainte-Catherine, Montréal, Canada H3T 2A7;Wharton School, University of Pennsylvania, 1400 Steinberg Hall-Dietrich Hall, 3620 Locust Walk, Philadelphia, PA 19104-6372, USA;HEC Montreal, 3000 Chemin Côte-Sainte-Catherine, Montréal, Canada H3T 2A7;HEC Montreal, 3000 Chemin Côte-Sainte-Catherine, Montréal, Canada H3T 2A7
Venue:
The Journal of Strategic Information Systems
Year:
2012

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Abstract

This study proposes and tests a model of the information technology (IT) outsourcing decision that includes antecedents of both transaction costs and production costs. Production costs show the most robust influence on governance. Skills required to execute the activities, interdependence between the activities, and firm-level characteristics - uncertainty and knowledge intensity - are the main explanatory variables of the decision. Transaction-level uncertainty is the only transaction cost variable found to influence the decision.