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Outsourcing decision-making aspects considered by IT departments in Brazilian companies

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  • Dias Ferreira, André Machado
  • Barbin Laurindo, Fernando José

Abstract

The study of Information Technology (IT) outsourcing is relevant because companies are outsourcing their activities more than ever. An important IT outsourcing research area is the decision-making process. In other words, the comprehension of how companies decide about outsourcing their IT operations is relevant from research point of view. Therefore, the objective of this study is to understand the decision-making process used by Brazilian companies when outsourcing their IT operations. An analysis of the literature that refers to this subject showed that six aspects are usually considered by companies on the evaluation of IT outsourcing service alternatives. This research verified how these six aspects are considered by Brazilian companies on IT outsourcing decisions. The survey showed that Brazilian companies consider all the six aspects, but each of them has a different level of importance. The research also grouped the aspects according to their level of importance and interdependency, using factorial analysis to understand the logic behind IT outsourcing decision process.

Suggested Citation

  • Dias Ferreira, André Machado & Barbin Laurindo, Fernando José, 2009. "Outsourcing decision-making aspects considered by IT departments in Brazilian companies," International Journal of Production Economics, Elsevier, vol. 122(1), pages 305-311, November.
    • Handle: RePEc:eee:proeco:v:122:y:2009:i:1:p:305-311
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    References listed on IDEAS

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    1. Yu, Lei & Suojapelto, Kimmo & Hallikas, Jukka & Tang, Ou, 2008. "Chinese ICT industry from supply chain perspective--A case study of the major Chinese ICT players," International Journal of Production Economics, Elsevier, vol. 115(2), pages 374-387, October.
    2. Hallikas, Jukka & Varis, Jari & Sissonen, Heli & Virolainen, Veli-Matti, 2008. "The evolution of the network structure in the ICT sector," International Journal of Production Economics, Elsevier, vol. 115(2), pages 296-304, October.
    3. Violet T. Ho & Soon Ang & Detmar Straub, 2003. "When Subordinates Become IT Contractors: Persistent Managerial Expectations in IT Outsourcing," Information Systems Research, INFORMS, vol. 14(1), pages 66-86, March.
    4. Offodile, O. Felix & Abdel-Malek, Layek L., 2002. "The virtual manufacturing paradigm: The impact of IT/IS outsourcing on manufacturing strategy," International Journal of Production Economics, Elsevier, vol. 75(1-2), pages 147-159, January.
    5. Paisittanand, Sineenad & Olson, David L., 2006. "A simulation study of IT outsourcing in the credit card business," European Journal of Operational Research, Elsevier, vol. 175(2), pages 1248-1261, December.
    6. Christine V. Bullen & Thomas. Abraham & Kevin. Gallagher & Kate M. Kaiser, 2007. "Changing IT skills: The Impact of Sourcing Strategies on In-House Capability Requirements," Journal of Electronic Commerce in Organizations (JECO), IGI Global, vol. 5(2), pages 24-46, April.
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    Cited by:

    1. Kenyon, G.N. & Meixell, M.J. & Westfall, P.H., 2016. "Production outsourcing and operational performance: An empirical study using secondary data," International Journal of Production Economics, Elsevier, vol. 171(P3), pages 336-349.

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