Determinants of information technology outsourcing: a cross-sectional analysis
Journal of Management Information Systems
Firms that choose outsourcing: a profile
Information and Management
A descriptive study on the outsourcing of information systems functions
Information and Management
Investment in information systems and the financial performance of the firm
Information and Management
A dialectic view of information systems outsourcing: pros and cons
Information and Management
Employment outsourcing in information systems
Communications of the ACM
Information Systems Outsourcing; Myths, Metaphors, and Realities
Information Systems Outsourcing; Myths, Metaphors, and Realities
Analyzing cost-effectiveness of organizations: the impact of information technology spending
Journal of Management Information Systems - Special section: Strategic and competitive information systems
Strategic information systems and financial performance
Journal of Management Information Systems - Special section: Navigation in information-intensive environments
ICIS '00 Proceedings of the twenty first international conference on Information systems
SIGCPR '02 Proceedings of the 2002 ACM SIGCPR conference on Computer personnel research
Application Service Providers: Will They Succeed?
Information Systems Frontiers
A theoretical framework for measuring the success of customer relationship management outsourcing
Business strategies for information technology management
A theory of application service provider (ASP) use from a client perspective
Information and Management
Information systems outsourcing: a survey and analysis of the literature
ACM SIGMIS Database
The impact of IS sourcing type on service quality and maintenance efforts
Information and Management
Information technology personnel layoffs in US organizations: an exploratory investigation
Information and Management
Information systems outsourcing: a literature analysis
Information and Management
Market reactions to E-business outsourcing announcements: an event study
Information and Management
The Sarbanes-Oxley Act: implications for large-scale IT outsourcing
Communications of the ACM - Emergency response information systems: emerging trends and technologies
A logistic regression framework for information technology outsourcing lifecycle management
Computers and Operations Research
Developing a decision model for business process outsourcing
Computers and Operations Research
Journal of Management Information Systems
Journal of Management Information Systems
Offshore Outsourcing: A Dynamic Causal Model of Counteracting Forces
Journal of Management Information Systems
Journal of Management Information Systems
EGOV '09 Proceedings of the 8th International Conference on Electronic Government
A review of the IT outsourcing literature: Insights for practice
The Journal of Strategic Information Systems
A Learning Model of Information Technology Outsourcing: Normative Implications
Journal of Management Information Systems
Information technology personnel layoffs in US organizations: An exploratory investigation
Information and Management
Does IT outsourcing deliver economic value to firms?
The Journal of Strategic Information Systems
Knowledge Management Competence for Enterprise System Success
The Journal of Strategic Information Systems
Strategic decisions using the fuzzy PROMETHEE for IS outsourcing
Expert Systems with Applications: An International Journal
Journal of Management Information Systems
Organizational Learning and Capabilities for Onshore and Offshore Business Process Outsourcing
Journal of Management Information Systems
Information systems outsourcing reasons in the largest Spanish firms
International Journal of Information Management: The Journal for Information Professionals
A decision model for IS outsourcing
International Journal of Information Management: The Journal for Information Professionals
Determinants of relationship quality for IS/IT outsourcing success in public sector
Information Systems Frontiers
Future State of Outsourcing Supply Chain Information Systems: An Analysis of Survey Results
International Journal of Enterprise Information Systems
Business-Related Determinants of Offshoring Intensity
Information Resources Management Journal
Information Resources Management Journal
Impact of Vendor Selection on Firms' IT Outsourcing: The Korea Experience
Journal of Global Information Management
Organizational Learning and Capabilities for Onshore and Offshore Business Process Outsourcing
Journal of Management Information Systems
Journal of Global Information Management
Journal of Global Information Management
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Researchers in information systems (IS) propose several reasons why firms outsource their IS, including reducing costs, generating cash, focusing on core competencies, and gaining access to technical expertise. We examine support for these assertions by comparing the financial characteristics of firms that enter into large-scale IS outsourcing agreements with those of other firms in their respective industries prior to outsourcing. A year-by-year comparison around the time of outsourcing indicates that firms that outsource their IS have significantly lower overhead costs, lower cash reserves, and higher debt before the outsourcing event. Analysis of changes in financial characteristics reveals an increase in long-term debt and financial leverage and declining growth rates prior to the outsourcing event. We argue that firms enter into large-scale IS outsourcing agreements primarily to reduce costs and to generate cash. Consequently, they are more likely to outsource when they have lower cash reserves, higher debt, or declining growth. The management objectives stated in the annual reports of these companies at the time of outsourcing corroborate our major findings.