Contracting for software development
Management Science
Determinants of information technology outsourcing: a cross-sectional analysis
Journal of Management Information Systems
Corporate Information Systems Management: Text and Cases
Corporate Information Systems Management: Text and Cases
Selecting the appropriate application development methodology
ACM SIGMIS Database
How IT organizations handle rapid IT change: five coping mechanisms
Information Technology and Management
The Journal of Strategic Information Systems
Special Section: Competitive Strategy, Economics, and Information Systems
Journal of Management Information Systems
Combining transaction cost and resource-based insights to explain IT implementation outsourcing
Information Systems Frontiers
Challenges in information systems procurement in the Norwegian public sector
EGOV'11 Proceedings of the 10th IFIP WG 8.5 international conference on Electronic government
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A general framework of different procurement strategies is introduced to help managers review their project portfolio to find more effective ways of using both internal and market resources in information systems development. Major decision criteria--the specificity of system design and the uncertainty involved in requirements specification--are adopted from transaction cost economics to determine what procurement strategies should be used in different situations. According to our Procurement Principle, systems that are company-specific and involve high uncertainty have to be internally developed because they require both the specific knowledge and intensive interaction between developers and users. More standard requirements indicate the use of outside consultants or software contractors who have experience and knowledge about a similar type of systems. For routine systems common in many organizations, acquisition and tailoring of a software package provides the most efficient procurement strategy. The Procurement Principle is also empirically tested with data from recent system development projects in major Finnish companies. Partial support was gained for the framework, but some interesting deviations were also detected, such as a tendency to rely on in-house development of even routine systems.