An empirical investigation of IT outsourcing versus quasi-outsourcing in France and Germany

Authors:
Jérôme Barthélemy;Dominique Geyer
Affiliations:
ESSEC Business School, Avenue Bernard Hirsch, 95021 Cergy Pontoise Cedex, France;AUDENCIA, 44312 Nantes Cedex 3, France
Venue:
Information and Management
Year:
2005

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Abstract

An increasingly large number of firms outsource their information technology (IT). Firms that contemplate such outsourcing have two alternatives: (1) a contract with a vendor (i.e., outsourcing) or (2) setting up their own IT subsidiary (i.e., quasi-outsourcing). This study examines some of the determinants of the outsourcing versus quasi-outsourcing decision. Using primary data collected in France and Germany, we show that the decision is strongly influenced by both internal (i.e., asset-specificity, size, and internal organization of IT) and external (i.e., institutional environment) determinants.