Risks, Benefits, and Challenges in Global IT Outsourcing: Perspectives and Practices

In the last few years, Web-based surveys have received increased attention given their potential to cut the costs and time associated with paper-based surveys. In this exploratory study, we consider the feasibility of using the Web as a data collection medium in China, which has a current Internet population of 103 million. Following a review of the literature regarding the design, implementation, and application of Web surveys, and the current state of data collection in developing countries in general and China in particular, we describe how we developed a Web-based survey instrument focusing on the ethical values of IT professionals. We e-mailed 5,000 IT professionals in China, inviting them to participate in the survey. Thirty-seven percent of those contacted visited the Web site and 5.8% submitted the survey. The survey data, both qualitative and quantitative, is analysed and discussed with a view to drawing up instructive guidance for researchers interested to use the Web as a data collection tool in China, as well as developing countries more generally. The Web-based survey has great potential in these contexts, if sensitively designed and implemented. We consider the implications of this research and identify areas where future research is necessary.

[1]  Barbara L. Marcolin,et al.  Financial and strategic motivations behind IS outsourcing , 1995, J. Inf. Technol..

[2]  Yu-Che Chen Managing IT Outsourcing for Digital Government , 2007 .

[3]  Detmar W. Straub,et al.  Production and Transaction Economies and IS Outsourcing: A Study of the U.S. Banking Industry , 1998, MIS Q..

[4]  Eric T. G. Wang Transaction attributes and software outsourcing success: an empirical investigation of transaction cost theory , 2002, Inf. Syst. J..

[5]  Robert W. Zmud,et al.  The outsourcing of information services: transforming the nature of business in the information industry , 1995, J. Inf. Technol..

[6]  Leslie P. Willcocks,et al.  Information Systems Outsourcing in Theory and Practice , 1995, J. Inf. Technol..

[7]  R. Nolan,et al.  How to Manage an IT Outsourcing Alliance , 1995 .

[8]  Anthony Atkins,et al.  Outsourcing Decision-Making: A Review of Strategic Frameworksand Proposal of a Multi-Perspective Approach , 2008 .

[9]  Y. Barzel,et al.  Measurement Cost and the Organization of Markets , 1982, The Journal of Law and Economics.

[10]  Gyeung-min Kim,et al.  Exploratory Study on Effective Control Structure in Global Business Process Sourcing , 2008, Inf. Resour. Manag. J..

[11]  Jaak Jurison The role of risk and return in information technology outsourcing decisions , 1995, J. Inf. Technol..

[12]  Yvonne Lederer Antonucci,et al.  The Pros and Cons of IT Outsourcing , 1998 .

[13]  H. Demsetz,et al.  Production, Information Costs, and Economic Organization , 1975, IEEE Engineering Management Review.

[14]  M. J. Earl,et al.  The Risks of Outsourcing IT , 1996 .

[15]  R. Langlois,et al.  Networks and innovation in a modular system: Lessons from the microcomputer and stereo component industries , 1992 .

[16]  Rajesh Mirani,et al.  Client-Vendor Relationships in Offshore Applications Development: An Evolutionary Framework , 2006, Inf. Resour. Manag. J..

[17]  William R. King,et al.  Developing a framework for analyzing IS sourcing , 2000, Inf. Manag..

[18]  Fenio Annansingh,et al.  Risk management practices in IS outsourcing: an investigation into commercial banks in Nigeria , 2004, Int. J. Inf. Manag..

[19]  Suzanne Rivard,et al.  A tale of two outsourcing contracts , 2003, Wirtschaftsinf..

[20]  Heather A. Smith,et al.  IT outsourcing risk management at British Petroleum , 2001, Proceedings of the 34th Annual Hawaii International Conference on System Sciences.

[21]  Abraham Seidmann,et al.  Two dimensions of software acquisition , 1996, CACM.

[22]  J. Cross IT Outsourcing: British Petroleum's Competitive Approach , 1995 .

[23]  Subhankar Dhar,et al.  Global Information Technology Outsourcing: From a Risk Management Perspective , 2004 .

[24]  Harbhajan Kehal,et al.  Outsourcing and Offshoring in the 21st Century: A Socio-Economic Perspective , 2006 .

[25]  Suzanne Rivard,et al.  The information technology outsourcing risk: a transaction cost and agency theory-based perspective , 2003, J. Inf. Technol..

[26]  Ron Chi-Wai Kwok,et al.  IT outsourcing evolution---: past, present, and future , 2003, CACM.

[27]  James J. Hoffman,et al.  A Goal Programming Model for Evaluating Outsourcing Partners on a Global Scale , 2007 .

[28]  Anthony DiRomualdo,et al.  Strategic Intent for IT Outsourcing , 1998 .

[29]  C. Prahalad,et al.  The Core Competence of the Corporation , 1990 .

[30]  Line Dubé,et al.  Rigor in Information Systems Positivist Case Research: Current Practices , 2003, MIS Q..

[31]  Bandula Jayatilaka,et al.  Information systems outsourcing: a survey and analysis of the literature , 2004, DATB.

[32]  W. Dugger The Economic Institutions of Capitalism , 1987 .

[33]  H. Raghav Rao,et al.  A two-level investigation of information systems outsourcing , 1996, CACM.