Survey of IT outsourcing experiences in US and UK organizations
Journal of Global Information Management
Information Systems Research
The Impact of E-Commerce Announcements on the Market Value of Firms
Information Systems Research
IT Outsourcing Strategies: Universalistic, Contingency, and Configurational Explanations of Success
Information Systems Research
A transaction cost model of IT outsourcing
Information and Management
Information systems outsourcing: a survey and analysis of the literature
ACM SIGMIS Database
Journal of Management Information Systems
The effect of service quality and partnership on the outsourcing of information systems functions
Journal of Management Information Systems
Market reactions to E-business outsourcing announcements: an event study
Information and Management
Impact of Vendor Selection on Firms' IT Outsourcing: The Korea Experience
Journal of Global Information Management
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The continued growth of IT outsourcing seems to reflect a fundamental belief among businesses that outsourcing creates wealth and delivers value to companies that outsource. Such a belief is supported by theories of production and transaction cost economies. These theories suggest that IT outsourcing should indeed generate greater wealth and create greater value for firms that outsource vis-à-vis firms that prefer to manage and operate their IT in-house. Yet, to date, there is little objective evidence to show how IT outsourcing actually does create value to companies. Drawing on transaction and production cost economies, we argue that IT outsourcing should create value for firms. We test our hypothesis using an event study of 420 IT outsourcing announcements by U.S. public listed companies during the period 1989-1999. Results showed that IT outsourcing did create value for firms in terms of positive short-term stock market returns.