IT outsourcing decision factors in research and practice: a case study

TL;DR

This study investigates how internal and external factors influence IT outsourcing decisions in a large Australian university, highlighting gaps in existing theories and the need for more comprehensive, practical decision models.

Contribution

It examines the influence of various factors on ITO decisions in practice and tests a descriptive model, revealing its limitations in explaining real-world decisions.

Findings

External factors are underexplored in ITO decision research.

The tested model did not fully explain actual ITO decisions.

More research is needed on external and contingency factors.

Abstract

The concurrent effect of various internal and external factors on IT Outsourcing (ITO) decision making has seldom been investigated in a single study. Furthermore, research on external factors is scarce and there is no comprehensive theory that can fully explain ITO decisions made in practice. This paper explains how key decision factors, both internal and external, influence ITO decision making in a large Australian University. We also tested the feasibility of a highly regarded descriptive model of ITO decisions as the basic foundation of an ITO decision theory. The model failed to fully explain ITO decisions in our case organisation. We draw researchers' attention to the need for more exploration of external factors as well as clarification of contingency factors that may explain inconsistencies between ITO decision theories and practice, and call for more research for 'practicable' ITO decision aids. Implications for practice are also discussed in the paper.