The Next Phase of IT Outsourcing - Utility Computing: Understanding Utility Computing Acceptance

Information Technology (IT) outsourcing is a major issue facing IT management. IT outsourcing has evolved from outsourcing IT functions externally, to Application Service Provider’s (ASP’s) and now to the next phase of IT outsourcing: utility computing (UC). UC as defined in this research turns computing infrastructure into a flexible, on demand pay per use service. Drawing on theories in trust, production economics, IT chargeback, transaction cost economics, and business strategy, this research proposes a conceptual model, in which UC providers’ trustworthiness, budgeting advantages, transaction costs, and organization strategies are identified as the salient antecedents of UC acceptance. This research is one of the first to examine the antecedents of UC acceptance and could provide early insights for potential UC adopter firms and UC providers.

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