OffshoreOutsourcingofInformationSystems:ATransactionCostTheoryCaseStudyofTaiwanCompanies

• Main Authors: Keith Westby, 韋司比
• Other Authors: Houn-Gee Chen
• Format: Others
• Language: en_US
• Online Access: http://ndltd.ncl.edu.tw/handle/529v4d

碩士 === 國立清華大學 === 科技管理研究所 === 93 === This is a case study attempted to determine the drivers in the outsourcing decisions of companies that have done substantial outsourcing of information systems and how they interpret the decision making from a transaction cost perspective in the Taiwan industrial sector. The research put forth the concept that a focus on economic theories and business models can improve our understanding to explain offshore outsourcing within the larger organizational framework. More specifically, the research constructs of production cost advantages, transaction costs and maintenance costs are investigated simultaneously to understand the degree of success of outsourcing decision making. Furthermore, the three constructs were empirically tested and data was collected from senior executive and IT professionals in the Taiwan industrial sector. The results of the study were analyzed and illustrates that the degree of IS offshore outsourcing was positively influenced by production cost advantages offered by external vendors. Transaction costs were very significant and played an important aspect in the degree of outsourcing decisions; however, was much smaller in magnitude. Maintenance cost was positive and statistically significant on the success of the IS outsourcing and influenced outsourcing decision making. Hence, it was downplayed by managers on the degree of outsourcing, but served as an explanatory variable on the success of the outsourcing initiative. Finally, the implications of this study provide evidence on the economic factors of production, transaction and maintenance cost for manager engaged in outsourcing. Therefore, the findings suggests that managers need to evaluate and balance production cost, transaction costs and maintenance costs when hiring external offshore service providers.