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Assessing the risk exposure in IT outsourcing for large companies

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  • Lazar Rusu
  • Georg Hodosi

Abstract

The decision process for companies to outsource information technology (IT) or not is a substantial business change and in many cases the competence to take such decisions is limited and has major consequences for the company's future performance. In this context, the paper is presenting the design of an information technology outsourcing (ITO) tool that includes a procedure based on transaction cost theory (TCT) for assessing the risk exposure in ITO. The ITO tool presented in this paper is a useful and effective instrument for the IT decision-makers in support of decisions to outsource IT or not. In the development of the ITO tool, we have approached two large companies in Sweden with more than 20 years experiences in ITO that helped us in the improvement and evaluation of the usability and effectiveness of this tool.

Suggested Citation

  • Lazar Rusu & Georg Hodosi, 2011. "Assessing the risk exposure in IT outsourcing for large companies," International Journal of Information Technology and Management, Inderscience Enterprises Ltd, vol. 10(1), pages 24-44.
    • Handle: RePEc:ids:ijitma:v:10:y:2011:i:1:p:24-44
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    Cited by:

    1. Ullah, Inayat & Hussain, Saqib, 2023. "Impact of early access to land record information through digitization: Evidence from Alternate Dispute Resolution Data in Punjab, Pakistan," Land Use Policy, Elsevier, vol. 134(C).

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