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Understanding the outsourcing learning curve: A longitudinal analysis of a large Australian company

Author

Listed:
  • Julie Fisher

    (Monash University)

  • Rudy Hirschheim

    (Louisiana State University)

  • Robert Jacobs

    (Monash University)

Abstract

Outsourcing continues to capture the attention of researchers as more companies move to outsourcing models as part of their business practice. Two areas frequently researched and reported in the literature are the reasons why a company decides to outsource, and outsourcing success factors. This paper describes an in-depth, longitudinal case study that explores both the reasons why the company decided to outsource and factors that impact on success. The paper describes how Alpha, a very large Australian communications company, approached outsourcing and how its approach matured over a period of 9 years. The paper concludes that although a number of reasons are proposed for a company's decision to outsource, lowering costs was the predominant driver in this case. We also describe other factors identified as important for outsourcing success such as how contracts are implemented, the type of outsourcing partner arrangement, and outsourcing vendor capabilities.

Suggested Citation

  • Julie Fisher & Rudy Hirschheim & Robert Jacobs, 2008. "Understanding the outsourcing learning curve: A longitudinal analysis of a large Australian company," Information Systems Frontiers, Springer, vol. 10(2), pages 165-178, April.
    • Handle: RePEc:spr:infosf:v:10:y:2008:i:2:d:10.1007_s10796-008-9070-y
    DOI: 10.1007/s10796-008-9070-y
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    References listed on IDEAS

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    Cited by:

    1. Baozhou Lu & Rudy Hirschheim & Andrew Schwarz, 2015. "Examining the antecedent factors of online microsourcing," Information Systems Frontiers, Springer, vol. 17(3), pages 601-617, June.
    2. Kai Wu & Ghassan Beydoun & Osama Sohaib & Asif Gill, 2022. "The Co-construct/ Co-evolving Process between Organization’s Absorptive Capacity and Enterprise System Practice under Changing Context: The Case of ERP Practice," Information Systems Frontiers, Springer, vol. 24(6), pages 2123-2138, December.
    3. Jolanta Sloniec, 2021. "A Longitudinal Analysis of IT Outsourcing in Large Polish Organizations," European Research Studies Journal, European Research Studies Journal, vol. 0(Special 2), pages 439-452.
    4. Judyta Kabus & Michał Dziadkiewicz & Ireneusz Miciuła & Marcin Mastalerz, 2022. "Using Outsourcing Services in Manufacturing Companies," Resources, MDPI, vol. 11(3), pages 1-20, March.
    5. Alireza Shahrasbi & Mehdi Shamizanjani & M. H. Alavidoost & Babak Akhgar, 2017. "An Aggregated Fuzzy Model for the Selection of a Managed Security Service Provider," International Journal of Information Technology & Decision Making (IJITDM), World Scientific Publishing Co. Pte. Ltd., vol. 16(03), pages 625-684, May.
    6. Jolanta Sloniec, 2021. "The Level of Outsourced Tasks in IT and its Dependence on Selected Explanatory Factors," European Research Studies Journal, European Research Studies Journal, vol. 0(Special 2), pages 152-167.
    7. Nils Urbach & Tobias Würz, 2012. "How to Steer the IT Outsourcing Provider," Business & Information Systems Engineering: The International Journal of WIRTSCHAFTSINFORMATIK, Springer;Gesellschaft für Informatik e.V. (GI), vol. 4(5), pages 247-259, October.
    8. Chulhwan Chris Bang, 2015. "Information systems frontiers: Keyword analysis and classification," Information Systems Frontiers, Springer, vol. 17(1), pages 217-237, February.
    9. Syaiful Ali & Peter Green, 2012. "Effective information technology (IT) governance mechanisms: An IT outsourcing perspective," Information Systems Frontiers, Springer, vol. 14(2), pages 179-193, April.
    10. Gonzalez, Reyes & Gasco, Jose & Llopis, Juan, 2016. "Information systems contracts and relationships: A Spanish perspective," Journal of Business Research, Elsevier, vol. 69(5), pages 1696-1700.

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