IT Service Management Employee Compensation: Determinants and Outcomes

Information technology (IT) service management (ITSM) is a critical function of an IT organization and it is important to recruit, manage, and retain qualified ITSM employees who are responsible for providing IT services to an organization. Organizations rely on their in-house ITSM team and the outsourced IT systems (or business processes) to deliver high quality IT services. While IT outsourcing has become a norm in many organizations, its potential impact on in-house ITSM employee compensation and job outcomes, such as job satisfaction and turnover intentions, has remained under-examined. We develop a model that examines the interplay between human capital factors such as educational qualifications, employee compensation, employee job outcomes, and two organizational factors–IT outsourcing and ITSM size. We conducted a survey of ITSM employees from 423 organizations and found support for the model. Our findings have important theoretical and practical implications.

[1]  Paul Trott,et al.  Innovation risks of strategic outsourcing , 2006 .

[2]  A. Rasheed,et al.  Making More by Doing Less: An Analysis of Outsourcing and its Effects on Firm Performance , 2000 .

[3]  A. Bardhan,et al.  The New Wave of Outsourcing , 2003 .

[4]  D. Brewer,et al.  Does Teacher Certification Matter? High School Teacher Certification Status and Student Achievement , 2000 .

[5]  Andrew von Nordenflycht.  What Is a Professional Service Firm? Toward a Theory and Taxonomy of Knowledge-Intensive Firms , 2010 .

[6]  Ali Tafti,et al.  Information Technology and Firm Profitability: Mechanisms and Empirical Evidence , 2012, MIS Q..

[7]  Wai Fong Boh,et al.  FIRM-SPECIFIC HUMAN CAPITAL AND COMPENSATION-ORGANIZATIONAL TENURE PROFILES: AN ARCHIVAL ANALYSIS OF SALARY DATA FOR IT PROFESSIONALS , 1904 .

[8]  Holly H. Brower,et al.  A comprehensive model and measure of compensation satisfaction , 2008 .

[9]  Torben Pedersen,et al.  Uncovering the Hidden Costs of Offshoring: The Interplay of Complexity, Organizational Design, and Experience , 2012 .

[10]  V. Ramesh,et al.  Information Technology Management Frameworks: An Overview and Research Directions , 2014, Computing Handbook, 3rd ed..

[11]  Narayan Ramasubbu,et al.  How Information Management Capability Influences Firm Performance , 2011, MIS Q..

[12]  Richard M. Steers,et al.  Organizational commitment, job satisfaction, and turnover among psychiatric technicians. , 1974 .

[13]  M. B. Khan,et al.  The Effects of Outsourcing of Information Technology on the Employment of Computer Professionals in the United States , 2012 .

[14]  Varun Grover,et al.  The Effect of Service Quality and Partnership on the Outsourcing of Information Systems Functions , 1996, J. Manag. Inf. Syst..

[15]  J. Igalens,et al.  A study of the relationships between compensation package, work motivation and job satisfaction , 1999 .

[16]  Vallabh Sambamurthy,et al.  Editorial Notes - The Growth of Interest in Services Management: Opportunities for Information Systems Scholars , 2006, Inf. Syst. Res..

[17]  J. Porac,et al.  FORTHCOMING IN ACADEMY OF MANAGEMENT JOURNAL The Burden of Celebrity: The Impact of CEO Certification Contests on CEO Pay and Performance , 2006 .

[18]  Heikki Topi,et al.  Computing Handbook, Third Edition: Information Systems and Information Technology , 2014, Computing Handbook, 3rd ed..

[19]  Leslie P. Willcocks,et al.  An Empirical Investigation of Information Technology Sourcing Practices: Lessons From Experience , 1998, MIS Q..

[20]  Soon Ang,et al.  Turnover of Information Technology Professionals: A Narrative Review, Meta-Analytic Structural Equation Modeling, and Model Development , 2007, MIS Q..

[21]  Raymond Lee,et al.  Age, Education, Job Tenure, Salary, Job Characteristics, and Job Satisfaction: A Multivariate Analysis , 1985 .

[22]  J. B. Quinn,et al.  STRATEGIC OUTSOURCING: LEVERAGING KNOWLEDGE CAPABILITIES , 1999 .

[23]  Mingdi Xin,et al.  Research Note - Comparing IT Workers' Compensation Across Country Contexts: Demographic, Human Capital, and Institutional Factors , 2007, Inf. Syst. Res..

[24]  Shawn M. Carraher,et al.  A Validity Study of the Pay Satisfaction Questionnaire (PSQ) , 1991 .

[25]  Kunsoo Han,et al.  INFORMATION TECHNOLOGY OUTSOURCING AND NON-IT OPERATING COSTS : AN EMPIRICAL INVESTIGATION 1 , 2013 .

[26]  Ronald Dattero,et al.  Information Technology Wages and the Value of Certifications: A Human Capital Perspective , 2007, Commun. Assoc. Inf. Syst..

[27]  Michael Alan Smith,et al.  It Certification Use by Hiring Personnel , 2009, J. Comput. Inf. Syst..

[28]  Peter Weill,et al.  The Future of the CIO in a Digital Economy , 2013, MIS Q. Executive.

[29]  Soon Ang,et al.  Human Capital and Institutional Determinants of Information Technology Compensation: Modeling Multilevel and Cross-Level Interactions , 2002, Manag. Sci..

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