Rethinking ERP-Outsourcing Decisions for Leveraging Technological and Preserving Business Knowledge

Authors:
J. Dibbern;L. Brehm;A. Heinzl
Affiliations:
-;-;-
Venue:
HICSS '02 Proceedings of the 35th Annual Hawaii International Conference on System Sciences (HICSS'02)-Volume 8 - Volume 8
Year:
2002

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Abstract

OSASP02During the selection, implementation and stabilization phases, as well as the operations and optimization phase of an ERP system (ERP-lifecycle), numerous companies consider to utilize the support of an external service provider. This paper analyses how different categories of knowledge influence the sourcing decision of tasks within the ERP lifecycle. Based on a review of the IS outsourcing literature, essential knowledge-related determinants for the IS outsourcing decision are presented and aggregated in a structural model. It will be hypothesized that internal deficits in technological knowledge in comparison to external vendors as well as the specificity of the synthesis of special technological and specific business knowledge have a profound impact on the outsourcing decision. The configuration task will be used as an example to illustrate how the structural model and the classification framework may be applied to evaluate the outsourcing of tasks within the ERP lifecycle.