Contributing Factors and Trends in the Usage of IT Outsourcing in Manufacturing and Service Sectors

Vipin K Agrawal, Vijay K Agrawal, Ngan N Chau, Sherri Harms

Abstract


The study projects long-term trends in the IT outsourcing in the manufacturing and service sectors of the United States. The findings suggest that the respondents perceive that there is approximately an equal usage of IT outsourcing in each of manufacturing and service sectors. Furthermore, the Desired Characteristics of Outsourcing – enabler of organisational flexibility, dynamics, and adaptability, redirection of resources, and increased control of operating costs – are positively related to the change in the requirement of IT outsourcing in the case of manufacturing. Meanwhile for the service sector, the Administrative Motivation for Outsourcing – lack of expertise, promising service offerings to subscribe, shrinkage in system life cycle – are positively associated with growth/no-growth in IT outsourcing.


Keywords:

IT outsourcing; IT offshoring; IT Management and Strategy; Optimum Investment on IT Resources; Predictive Models Trends in IT outsourcing

Full Text:

PDF

References


P. E. Ceruzzi, Personal Computer, Cambridge, MA: MIT Press., 2003.

C. Crowley, M. Carcary, E. Doherty and G. Conway, "Rethinking IT Sourcing and Supplier Management for the Digital Age," Proceedings of the European Conference on Innovation & Entrepreneurship, pp. 64–72, 2017.

C. Lusero, A. R. Taylor and V. Agrawal, "A case review of Xpanxion: a software quality assurance startup," International Journal of Management Cases, vol. 15, no. 2, pp. 140–152 , 2013.

J. B. Quinn and F. G. Hilmer, "Strategic outsourcing," Sloan Management Review, vol. 35, no. 4, 1994.

D. W. Drezner, "The Outsourcing Bogeyman," Foreign Affairs, vol. 83, no. 1, pp. 22–34, 2004. https://doi.org/10.2307/20033973

S. Sahay, B. Nicholson and S. Krishna, Global IT Outsourcing: Software Development across Borders. New York: Cambridge University Press, 2003. https://doi.org/10.1017/CBO9780511615351

M. Lacity and R. Hirschheim, "The Information Systems Outsourcing Bandwagon," Sloan Management Review, vol. 35, no. 1, 1993.

BankRate.com, "Cost of Living Calculator," [Online]. Available: https://www.bankrate.com/calculators/savings/moving-cost-of-living-calculator.aspx. [Accessed 18 06 2020].

S. Domberger, P. Fernandez and D. G. Fiebig, "Modelling the price, performance and contract characteristics of IT outsourcing," Journal of Information Technology, no. 15, pp. 107–118, 2000. https://doi.org/10.1177/026839620001500203

J. Hale, Outsourcing Training and Development, Pfeiffer, 2006.

A. Lastovetska, "IT Outsourcing: Key Insights, Benefits, & 3-Step Procedure," MLSDev, 03 10 2019. [Online]. Available: https://mlsdev.com/blog/it-outsourcing. [Accessed 19 06 2020].

Y. K. Yoon and K. S. Im, "Evaluating IT outsourcing customer satisfaction and its impact on firm performance in Korea," International Journal of Technology Management, vol. 43, no. 1/2/3, 2008. https://doi.org/10.1504/IJTM.2008.019413

L. Whittam, "How Does Outsourcing Improve Client Satisfaction?," The Daily CPA, 08 04 2019. [Online]. Available: https://thedailycpa.com/2019/05/08/how-does-outsourcing-improve-client-satisfaction/. [Accessed 16 06 2020].

S. Dhar and B. Balakrishnan, "Risks, Benefits, and Challenges in Global IT Outsourcing: Perspectives and Practices," Journal of Global Information Management, vol. 14, no. 3, 2006. https://doi.org/10.4018/jgim.2006070104

A. Tiwana and M. Keil, "Control in Internal and Outsourced SoftwareProjects," J. of Management Information Systems, no. 3, 2014.

G. Kennedy and D. Clark, "Outsourcing to China – Risks and benefits," Computer Law & Security Review, vol. 22, no. 3, pp. 250–253, 2006. https://doi.org/10.1016/j.clsr.2006.03.006

National Security Agency (NSA), "Technology Security and Export Control," [Online]. Available: https://www.nsa.gov/business/programs/export-control-policy/. [Accessed 19 06 2020].

K. M. Gilley and A. Rasheed, "Making More by Doing Less: An Analysis of Outsourcing and its Effects on Firm Performance," Journal of Management, vol. 26, no. 4, 2000. https://doi.org/10.1177/014920630002600408

C. Harland, L. Knight, R. Lamming and H. Walker, "Outsourcing: assessing the risks and benefits for organisations, sectors and nations," International Journal of Operations & Production Management, vol. 25, no. 9, 2005. https://doi.org/10.1108/01443570510613929

S. O'Dea, "Smartphone penetration rate as share of the population in the United States from 2010 to 2021," Statista, 8 04 2020. [Online]. Available: https://www.statista.com/statistics/201183/forecast-of-smartphone-penetration-in-the-us/. [Accessed 23 06 2020].

D. A. Dillman, Mail and Telephone Surveys - The Total Design Method. John Wiley and Sons, New York, 1978.

D. A. Dillman, Mail and internet surveys: The tailored design method. John Wiley, Co, New York, 2000.

V. K. Agrawal, V. K. Agrawal, N. N. Chau, M. Miller and S. Harms, "Current and Future Contributing Facturos and Trends in the Usage of IT Cloud Computing in Manufacturing and Service Sectors".

H. Kaiser, "A second-generation little jiffy," Psychometrika, vol. 35, pp. 401–415, 1970. https://doi.org/10.1007/BF02291817

H. Kaiser and J. Rice, "Little Jiffy, Mark IV," Educational and psychological measurement, vol. 34, pp. 111–117, 1974. https://doi.org/10.1177/001316447403400115

J.-O. Kim and C. W. Mueller, Factor Analysis: Statistical Methods and Practical Issues. Sage Publications Inc., 1978. https://doi.org/10.4135/9781412984256

M. Bartlett, "Tests of significance in factor analysis," British Journal of Psychology, vol. III, Part II, pp. 77–85, 1950. https://doi.org/10.1111/j.2044-8317.1950.tb00285.x

J. F. Hair, R. L. Tatham, R. E. Anderson and W. Black, Multivariate Data Analysis, 1995.

B. G. Tabachnick and L. S. Fidell, Using Multivariate Statistics (Seventh Edition). Pearson, 2007.

G. A. Churchill, Jr., "A paradign for developing better measures of marketing constructs," Journal of Marketing Research, vol. 16, no. 1, pp. 64–73, 1979. https://doi.org/10.1177/002224377901600110

T. R. Hinkin, J. B. Tracey and C. A. Enz, "Scale construction: Developing reliable and valid measurement instruments," Journal of Hospitality & Tourism Research, vol. 21, no. 1, pp. 100–120, 1997. https://doi.org/10.1177/109634809702100108

J. Ford, R. MacCallum and M. Tait, "The application of exploratory factor analysis in applied psychology: A critical review and analysis," Personnel Psychology, vol. 39, pp. 291–314, 1986. https://doi.org/10.1111/j.1744-6570.1986.tb00583.x

E. Guadagnoli and W. Velicer, "Relation of sample size to the stability of component patterns," Psychological Bulletin, vol. 103, no. 2, pp. 265–275, 1988. https://doi.org/10.1037/0033-2909.103.2.265

J. C. J. Nunnally, Introduction to psychological measurement. McGraw-Hill., 1970.

D. A. Kenny, B. Kaniskan and D. B. McCoach, "The Performance of RMSEA in Models With Small Degrees of Freedom," Sociological Methods & Research, 2014. https://doi.org/10.1177/0049124114543236

V. K. Agrawal, V. K. Agrawal, A. R. Taylor and N. N. Chau, "An Exploratory Study of Factors Driving Decision Makers to Adopt Cloud Computing," Information Technology and Management Science, vol. 22, pp. 37–46, 2019. https://doi.org/10.7250/itms-2019-0006

N. Sultan, "Cloud computing: A democratizing force?," International Journal of Information Management, vol. vol. 33, no. 5, pp. 810–815, 2013. https://doi.org/10.1016/j.ijinfomgt.2013.05.010

V. Venkatesh and F. D. Davis, "A model of the antecedents of perceived ease of use: Development and test," Decision Sciences, pp. 451–481, 1996. https://doi.org/10.1111/j.1540-5915.1996.tb01822.x




DOI: 10.7250/itms-2020-0003

Refbacks

  • There are currently no refbacks.


Copyright (c) 2020 Vipin K Agrawal, Vijay K Agrawal, Ngan N Chau, Sherri Harms

Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License.