Exploring the Role of Organizational Competencies in Information Technology Outsourcing| A Holistic Case Study on Decision-Making for Outsourcing of Cloud-Based Services

• Main Author: Kolodziej, Marlene R.
• Language: EN
• Published: Capella University 2019
• Subjects: Business administration|Information technology
• Online Access: http://pqdtopen.proquest.com/#viewpdf?dispub=13426102

<p> Executive decision-makers cannot always anticipate and fully understand the implications of information technology outsourcing (ITO) decisions for the long-term processes, capabilities, and performance of their organization, especially when considering ITO for cloud-based services. The purpose of this qualitative, holistic single-case study was to explore the decision-making process, particularly the criteria used by executive decision-makers in U.S.-based multinational corporations (MNCs), for identifying and selecting organizational competencies when engaging in ITO for cloud-based services. Participants included 15 executive decision-makers in U.S.-based MNCs who had participated in decision-making for at least one ITO engagement for cloud-based services. Data collected from individual in-depth interviews, a focus group interview, and document review supported nine dominant themes, including identification of organizational competencies; decision model; contingency and business continuity; communication; skills, knowledge, and speed to market; cost; technology and processes; financial models; and culture change. Findings indicate that executive decision-makers are unable to articulate decision-making criteria and to define processes used for identifying and selecting organizational competencies to consider as part of ITO engagements for cloud-based services. They intuitively understand organizational core competencies and recognize that their organizations should not outsource them. Findings further support that the more experience executive decision-makers have with ITO, the more successful the outsourcing engagement will be. Challenges associated with outsourcing are directly proportional to the amount of outsourcing experience an executive decision maker has with ITO, as the initial outsourcing engagement requires new frameworks and processes. Subsequent outsourcing engagements rely on the structure and lessons learned from prior engagements, thereby reducing the negative impact on the outsourcing process. Unexpected findings included differences between female and male participants on the perception of outcomes of their ITO engagements and the need for an updated financial model for ITO for cloud-based services. Future researchers should consider criteria for identifying and selecting organizational competencies to outsource, methods used to anticipate the long-term impact of ITO for cloud-based services, gender-based perception of success or failure of ITO for cloud-based services, and financial model changes when implementing ITO for cloud-based services.</p><p>