Outsourcing: An IT-Capable Firm's Perspective

46 Pages Posted: 25 Apr 2008 Last revised: 5 May 2008

See all articles by Theophanis C. Stratopoulos

Theophanis C. Stratopoulos

University of Waterloo - School of Accounting and Finance

Mihir A. Parikh

University of Central Florida - Department of Management Information Systems

Date Written: 2008

Abstract

Recognizing the need to bridge the gap between the outsourcing and the IT capability literature, this study provides a framework for approaching outsourcing decisions from an IT-capable firm's perspective. The paper lays the foundation for a micro-economic framework for contrasting the value-adding proposition of three sourcing options: insourcing (hierarchy), outsourcing (market), and IT outsourcing alliances (hybrid). We use this framework to identify a small and suggestive set of necessary and sufficient conditions under which an IT-capable firm may be able to extract incremental value from an IT outsourcing alliance.

Keywords: IT Outsourcing, IT capability, Business Value of IT, competitive advantage, relational theory, transaction cost economics, reciprocal-learning alliances

Suggested Citation

Stratopoulos, Theophanis C. and Parikh, Mihir A., Outsourcing: An IT-Capable Firm's Perspective (2008). Available at SSRN: https://ssrn.com/abstract=1123995 or http://dx.doi.org/10.2139/ssrn.1123995

Theophanis C. Stratopoulos (Contact Author)

University of Waterloo - School of Accounting and Finance ( email )

200 University Avenue West
Waterloo, Ontario N2L 3G1 N2L 3G1
Canada
519-888-4567 x35943 (Phone)

Mihir A. Parikh

University of Central Florida - Department of Management Information Systems ( email )

United States

Register to save articles to
your library

Register

Paper statistics

Downloads
161
Abstract Views
971
rank
184,372
PlumX Metrics