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Sustaining competitiveness through information technology outsourcing Evidence from an emerging nation
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M. Sadiq Sohail Department of Management & Marketing, College of Industrial Management, King Fahd University of Petroleum & Minerals, Dhahran, Saudi Arabia Abstract Purpose – With competitive pressures increasing, outsourcing has become a common phenomenon in today’s global economy. While there is growing evidence of organizations increasingly seeking to outsource their information technology (IT) functions, there have been few comprehensive studies on this subject from the Middle East region. The purpose of this paper is to investigate the usage of IT outsourcing in Saudi Arabia. Design/methodology/approach – Empirical research is used to study the extent that firms use the services of IT companies, the time period these have been used, the decision-making process for outsourcing IT function, and its impact on the organization. Findings – Results based on the analysis of data relating to 178 firms in Saudi Arabia indicate that most of these users are satisfied with the service providers and have largely seen positive developments within the organization. Research limitations/implications – Limitations of this paper relate to the relatively small size of the sample. This somewhat limits generalization of findings to the entire Kingdom of Saudi Arabia. Practical implications – Findings have several practical implications for small startup companies and even larger companies that are deciding to outsource IT function in the Arabian Gulf region. The results provide managers with evidence supporting the benefits of IT outsourcing. Originality/value – This paper makes a valuable contribution given the fact that there are only a limited number of comprehensive studies dealing with the assessment of IT outsourcing functions. Keywords Saudi Arabia, Information technology, Information systems, Outsourcing, Commitment, Expenditure, Competitiveness Paper type Research paper
Introduction Manufacturing firms seeking competitive advantage are more likely to use information technology (IT) applications (Neirotti et al., 2008). Yet, with increasing competitive pressures, outsourcing is becoming an increasingly common phenomenon in today’s global economy (Dhar and Balakrishnan, 2006). To sustain competitiveness, many large organizations, as well as the smaller ones, have been outsourcing some or all of their IT activities. These organizations are outsourcing their IT functions for a variety of reasons, most notably being a concern for cost and quality, supplier pressure, The author acknowledges the financial and facilities support received from King Fahd University of Petroleum and Minerals, Saudi Arabia.
Competitiveness Review: An International Business Journal Vol. 21 No. 4, 2011 pp. 369-381 q Emerald Group Publishing Limited 1059-5422 DOI 10.1108/10595421111152165
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or financial factors (McFarlan and Nolan, 1995). Other reasons to outsource include bringing production efficiency, attaining higher quality, improving customer satisfaction, enabling organizations to have more time to focus on marketing activities, or to simply let the organization focus on their core business. A study of outsourcing decisions found that adoption of IT outsourcing is motivated more by internal forces and imitative behavior rather than any external influences (Loh and Venkatraman, 1992b). Information system (IS) outsourcing makes a profound impact on management of an organization. These are mainly in the areas of structural changes, task and jobs changes, people and relationship changes, and IT and infrastructure changes. Hence, finding effective ways to manage organizational changes is a key to successful outsourcing (Chou, 2007). The incidence of IT outsourcing in the Kingdom of Saudi Arabia appears to be increasing. However, our literature search shows that, recently, no comprehensive study has been undertaken to determine the incidence or extent of IT outsourcing in the kingdom. One study in the context of outsourcing in the kingdom focuses on the logistic functions. Results of this study indicate that most organizations have largely seen logistics outsourcing as positive developments (Sohail, 2008). Amidst this backdrop, the aim of this study is to investigate the factors that are driving IT outsourcing in the kingdom. The study is expected to add to the dearth of literature in the area of IT outsourcing. Specifically, the focus of the study is in the following areas: . the period of usage of IT outsourcing services; . the process of decision making in IT outsourcing decision and implementation issues; . the firms’ commitment and extent of IT outsourcing; and . the impact of IT outsourcing and future trends in firms extent of outsourcing. The rest of the paper is organized in the following manner. First, we review relevant literature on the factors that affect usage of IT outsourcing. Second, we present a research framework. Third, we describe the methodology of the research, including data collection. Fourth, we present the results. Fifth and finally, we discuss implications of this study and conclude the study by suggesting further research. Review of literature IT outsourcing To put it in simple terminology, outsourcing means assigning that part of work that was formerly done inside the organization to be now performed by an external organizations. However, as businesses become complex, the function of outsourcing has also simultaneously become more sophisticated. A growing number of organizations are outsourcing an increasing number of functions. One such area commonly outsourced is IT/IS (for the purpose of this study, IT and IS mean the same). IT outsourcing may be broadly defined as a process undertaken by an organization to contract-out or to sell the organization’s IT assets, staff, and/or activities to a third-party supplier, who in exchange provides and manages IT assets and services for monetary return over an agreed period of time (Kern et al., 2002). IT outsourcing may also be defined as the act of subcontracting part or all of a company’s IT function to one
or more external vendors (Cheon et al., 1995; Geibstein, 2002; Lacity and Wilicocks, 1998; Loh and Venkatraman, 1992a; Sengupta and Zviran, 1997). Businesses have been using IT outsourcing since the early 1960s (Due, 1992; Lacity, 1992). In 1963, Perot’s electronic data systems were performing data processing services for Frito-Lay and Blue Cross (Mason, 1990). Current IT outsourcing has changed significantly since these earlier arrangements. The differences relate to the operational, technical, and financial sophistication of outsourcing vendors and the flexibility of their offerings (Radding, 1993). Such variances have contributed to the IT outsourcing business gaining popularity. IT outsourcing is considered a “growing phenomenon in developed economies” (Willcocks et al., 1995, p. 59). The main reason for its popularity includes a representation of a shift in the business strategy of a firm, that is, firm’s now refocusing on their core competences (Lacity et al., 1996). Extant literature on outsourcing has broadly focused on two areas. First is to identify the drivers for firms to enter into outsourcing arrangements in alternative business environments and industry settings. Second is to identify the key determinants affecting the overall performance of the firm as a result of outsourcing. Various approaches to IT outsourcing have been identified (Yong Ki and Shin Irn, 2005). One of such approaches is the transaction cost theory. This approach offers a method of evaluating the relative advantages of different internal and external organizations for handling transactions (Cheon et al., 1995). It also provides an excellent framework for analyzing the outsourcing options (Lacity and Hirschheim, 1993a, b). Another popular approach to IT outsourcing is resource-based approach. The resource-based approach views a firm as a collection of productive resources (Cheon et al., 1995). Approached from this perspective, Khalfan and Gough (2002) conclude that firms resort to IT outsourcing, because of a shortage of available resources or due to inadequacy of core resources within the firm. Reasons for IT outsourcing There are a number of reasons for a firm’s decision to outsource their IT function (Beaumont and Costa, 2002). However, the mix of these factors varies widely from one firm to another (McFarlan and Nolan, 1995). Cost savings appear to be the most significant reason for IT outsourcing (Khosrowpour et al., 1996). Due (1992) also concluded that all organizations, whether public and private, should evaluate outsourcing as an opportunity for cost savings. Another most commonly cited reason for outsourcing is cost reduction (Lacity and Willcocks, 1998; Loh and Venkatraman, 1992b; McFarlan and Nolan, 1995; Willcocks et al., 1995). Apart from these, there are other reasons for outsourcing IT functions. These include technical considerations such as lack of resources, specialized skills or time may lead an organization to consider entering an outsourcing arrangement instead of developing or maintaining systems in-house (Gupta and Gupta, 1992). Technical considerations are captured by resource-based theories and resource dependence theories. Shortage of manpower is another reason for many companies to outsource. With an emergence of global economy and boom in the IT industry, several IT service providers in developing nations like India have seen the appearance of a new industry catering to supply of a wide range of IT services. However, most of these nations, particularly India, while being globally competitive in providing IT services are facing
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serious challenges, and its position is being threatened for want of adequate skilled employees (Acharya and Mahanty, 2007). Focus on core activities is a major factor that drives a firm to outsource its IT functions (Beaumont and Costa, 2002). These authors maintain that managers concentrate on firm’s core activities and exploit competencies based on their experience and knowledge, and contract out activities in which they are less competent. Outsourcing IT functions can also enable companies to lower the inherent risk found with spending large amounts of money on technology (Khosrowpour et al., 1996). This is because by purchasing services at a fixed cost per transaction, a client can avoid financial uncertainty. Cultural differences do often cause friction between IT and management’ (Williamson, 1975). To ameliorate this problem, some organizations may resort to outsourcing their IT activities. Research framework In line with the conceptualization of this study, a research framework is specifically developed. The framework shown in Figure 1 focuses on the following areas: . factors affecting the usage of IT outsourcing services; . factors affecting the decision to outsource; . benefits for the user firms; . impact of use of outsourcing on firms; and . future plans for usage of outsourcing services.
Extent of usage of IT outsourcing services – Period of usage – Level of commitment – Percentage of budget
Decision-making process – Functional areas involve – Reasons for outsourcing
Figure 1. The research framework
Impact on firm – Impact on user firm – Satisfaction levels – Future use of outsourcing services
Outsourcing of IT function
Methodology and data collection Based on the research framework, a survey instrument was developed and a mail survey was conducted. The target population included all firms in Saudi Arabia, which had significant IT activities. The sampling frame was comprised of companies of different size and industries doing business in Saudi Arabia. The target respondents were managers’ involved in decision making related to IT function. Primary data collection poses numerous challenges to researchers in Saudi Arabia (Sohail and Al-Abdali, 2005). Owing to the closed nature of the Saudi society and business firms, and a general apathy to unsolicited surveys, repeated waves of reminders and call-backs were undertaken. Further, due to a preference for formality, research assistants were engaged to make personal visits and to distribute/administer the survey questionnaire to randomly selected firms that had consented to participate. A total of 1,000 questionnaires were randomly distributed. Of these, 178 completed questionnaires were received, representing 17.8 percent response rate, which compares well with response rates from other studies in Saudi Arabia (Sohail and Al-Abdali, 2005).
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Study findings and implications Survey responses and profile of respondents The demographic profiles of the firms surveyed indicate that 23 percent of them are from the manufacturing industry; 17 percent from the financial; 40 percent are classified as government utilities and the rest are grouped as service firms. Based on the number of employees, 8 percent of the responding firm had , 100 employees; 25 percent had between 100 and 500 employees; while 67 percent or two-thirds of the total firms had over 500 employees. As for the location, the responses are evenly drawn from the three major provinces of the kingdom that is central, western, and eastern. Table I provides an overview of the results. Frequency Industry category Manufacturing Financial Government and utilities Others Total employees in company 1-100 101-500 Over 500 Others Years in IS profession of respondents ,5 5-10 11-20 Over 20 Location of firm Eastern province Western province Central province Others
41 30 40 67
% 23 17 22 36
15 44 119 2
8 25 67 1.1
72 70 23 13
40.4 39.3 12.9 7.3
60 59 53 6
33.7 33.1 29.8 3.4
Table I. Demographic profile
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Study findings Period of usage In terms of the length of outsourcing, the results are mixed. Of the total of 177 responses, 34 percent of them have been outsourcing IT services for one to three years, while 32 percent of them have been outsourcing for over five years. About 12 percent of the respondents indicated that they have been outsourcing for less than a year. Clearly, outsourcing of IT services cannot be considered a recent phenomenon. Mixed results can also be seen as regards the size of firms based on numbers of employees. Large firms having over 5,000 employees and the small ones between 101 and 500 employees have outsourced the most. Table II provides an overview of length of usage of IT services based on firm size. Level of commitment to IT outsourcing As for the firms’ commitment to IT outsourcing, half of the total respondents’ have indicated that there is a limited commitment, while 26 percent have outsourced moderately. Table III provides an overview of the firms commitment to the usage based on the size of the firm. It can be seen that no relationship exists between the level of IT outsourcing and number of employees. Overall, firms in Saudi Arabia have shown limited commitment to IT outsourcing. IT outsourcing expenditure Table IV provides an overview of the percentage of IT budget paid to outsourcing services based on the size of the firm. About 28 percent of the firms spend between 20 and 30 percent of their IT budget on outsourcing activities. Another 33 percent Length of usage Firm size based on number of employees (%) Less than one 1-3 More than 3 but , 5 Over five year years years years
No. of employees
Table II. Length of usage based on firms size
, 100 101-500 501-1,000 1,001-2,500 2,500-5,000 Over 5,000 Total
Firm’s commitment
Table III. Extent of commitment based on firm size
Very limited Limited Moderate Extensive Total
3 7 6 3 2 0 21
(20) (15.9) (17.6) (21.4) (13.3) (11.9)
8 24 12 2 3 11 60
(53) (54.5) (35.4) (14.3) (20) (20) (33.9)
2 7 11 5 0 14 39
(13.3) (15.9) (32.3) (35.7) (25.5) (22)
2 6 5 4 10 30 57
Firm size based on number of employees (%) 5011,0012,500Over 1-100 101-500 1,000 2,500 5,000 5,000 8 5 2 0 15
(36.3) 6 (27.3) 2 (9.1) 3 (5.6) 19 (21.3) 30 (33.7) 9 (4.2) 16 (34.3) 2 (4.2) 2 3 (15) 0 0 (8.4) 44 (24.7) 34 (19.1) 14
(13.6) (10.1) (4.2) (7.9)
3 10 2 0 15
(13.6) (11.3) (4.2) (8.4)
0 16 (18) 23 (48.9) 17 (85) 56 (31.5)
(13.3) (13.6) (14.7) (28.6) (66.7) (54.5) (32.2)
Total 15 44 34 14 15 55 177
(8.4) (24.8) (19.2) (7.9) (8.5) (31.1) (100)
Overall commitment 22 89 47 20 178
(12.4) (50) (26.4) (11.2 (100)
Percentage of IT budget 0-10 11-20 21-30 31-40 41-50 51-60 71-80 81-90 91-100 Total
1-100
Firm size based on number of employees (%) 5011,0012,500Over 101-500 1,000 2,500 5,000 5,000
6 (21.4) 13 (46.4) 5 (17.9) 2 (6.3) 9 (28.1) 2 (6.3) 0 7 (14) 2 (4) 4 (12.5) 5 (15.6) 6 (18.8) 3 (12.5) 6 (25) 13 (54.2) 0 2 (100) 0 0 2 (50) 2 (50) 0 0 2 (100) 0 0 0 15 (8.5) 44 (25) 32 (18.2)
2 2 8 2 0 0 0 0 0 14
(7.1) (6.3) (16) (6.2)
(7.9)
0 1 5 7 0 0 0 0 2 15
(3.1) (10) (21.9)
(100) (8.5)
2 16 28 8 2 0 0 0 0 56
(7.1) (50) (56) (25) (8.3)
(73.7)
IT outsourcing Total 28 32 50 32 24 2 4 2 2 176
(15.9) (18.2) (28.4) (18.2) (13.6) (1.1) (2.2) (1.1) (1.1) (100)
of the firms spend , 20 percent of IT budget. Further, another 18 percent of respondents spend between 40 and 50 percent of their budgets on IT outsourcing providers. This can be seen as a positive signal. There is no significant variation in the payment based on the size of the firm. The decision-making process Functional areas involved Those surveyed were asked to indicate if managers from other functional areas were involved in the decision to outsource IT function. About 55 percent of the respondents indicated that other functional managers were involved and the remaining 45 percent indicated that it was a departmental decision. There was a considerable variation in the answer of those indicating the involvement of functional managers. Managers from marketing departments were involved in 40 percent of responses and there was a 20 percent involvement by managers from human resource departments. Managers from manufacturing and finance departments were also involved but to a relatively lesser extent. Reasons for outsourcing The survey focused on determining the important factor in making a decision to outsource. The responses to this question are presented in Table V. Lack of internal resources is an important factor in the decision to outsource (24 percent). Focusing on core competency was also cited as an important factor (23 percent). Respondents have also noted cost factor (20 percent). Other factors including the basis of firm size is also presented in the table. There are no significant differences in the factors based on the size of the firm. Impact of IT outsourcing Impact on user firm Respondents were asked to rate the extent of organizational impact of factors such as employee morale, IT costs, customer satisfaction, and internal IT system performance. The responses are provided in Table VI. Responses in general are overwhelmingly biased towards a positive or very positive impact. About 28 percent of the respondents
375 Table IV. Percentage IT budget paid to contract services based on firm size
Table V. Factors considered important outsourcing decision 3 5 0 0 7 0 15 (8.4)
(16.7)
(8.1) (11.6)
4 13 7 5 12 3 44
(10.8) (30.2) (35) (29.4) (28.6) (15.8) (24.7)
7 15 3 0 6 3 34 (14.3) (15.8) (19.1)
(18.9) (34.9) (15)
0 3 2 5 4 0 14
(7.9)
(7) (10) (29.4) (9.5)
8 0 3 2 0 2 15
(10.5) (8.4)
(15) (11.8)
(21.6)
Firm size based on number of employees (%) 101-500 501-1,000 1,001-2,500 2,500-5,000
15 7 5 5 13 11 56
(40.5) (16.3) (25) (29.4) (30.9) (57.9) (31.5)
Over 5,000
376
Reduction of operating costs Lack of internal resources Increased availability of capital fund in core functions Problematic functions Improve business focus Access to world-class capabilities Total
1-100
37 43 20 17 42 19 178
(20.8) (24.2) (11.2) (9.6) (23.6) (10.6) (100)
Total
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have rated the response as negative to very negative in the category of employee morale. This may be perhaps due to the fear of job loss or sharing of information. From the mean scores, it can be inferred that IT outsourcing has positive impact on both customer satisfaction and internal IS performance with means scores of 3.10 and 3.01 out of 4. Similarly, the impact of IT outsourcing on IS costs and employee morale is also in the positive region. Satisfaction levels Overall, an overwhelming 92 percent of the firms are satisfied with the performance of IT service providers. Of these, 35 percent indicate that they are “very satisfied” and the remaining 57 are “satisfied.” Only about 8 percent of the firms have indicated dissatisfaction with the service providers. Table VII provides an overview of the satisfaction level based on size of firms.
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Future of IT outsourcing Finally, respondents were asked to indicate as to how they would amend their use of IT outsourcing services if they were given complete corporate responsibility to make that decision. About 45 percent of them indicated they would substantially increase the usage of IT outsourcing services and a further 36 percent indicated that they would moderately increase usage of such services. About 15 percent of them would moderately decrease the usage, and about 3 percent would eliminate the usage of IT outsourcing services. These details based on firm size are provided in Table VIII. There is no significant variation in the extent of commitment based on the size of the firm. Study implications The findings of this study offer some practical implications. These implications are useful to the management of companies as well as IT outsourcing service providers across the Kingdom of Saudi Arabia specifically and the region in general. No. of firms (%) Very negative Negative Positive
Area of impact Employee morale Internal IS performance Customer satisfaction Contract companies on IS costs
5 (2.8) 4 (2.2) 0 2 (1.1)
44 22 17 47
(24.7) (12.4) (9.5) (26.4)
114 121 126 112
Very positive Mean
(64) (68) (70.8) (62.9)
15 31 35 17
(8.5) (17.4) (19.7) (9.6)
3.10 3.01 2.81 2.82
SD 0.53 0.62 0.61 0.63
Notes: Mean scores based on a range with which 1 – very negative; 2 – negative; 3 – positive; and 4 – very positive
Satisfaction level Very satisfied Satisfied Dissatisfied Total
1-100 4 2 8 14
Firm size based on number of employees (%) 101-500 501-1,000 1,001-2,500 2,500-5,000 Over 5,000
(6.5) 16 (25.8) (2) 23 (23) (53.3) 5 (33.3) (7.9) 44 (24.8)
18 (29) 16 (16) 34 (19.3)
5 (8.1) 9 (9)
4 (6.4) 11 (11)
14 (7.9)
15 (8.5)
15 39 2 56
(24.2) (39) (13.4) (13.6)
Table VI. IT outsourcing and impact on firm
Total 62 100 15 177
(35) (56.5) (8) (100)
Table VII. Satisfaction level with IT service provider
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The observation that the concept of IT outsourcing is widely utilized by companies in the kingdom and plan to increase its usage provides a good potential to those companies in the business of outsourcing. The decision to utilize IT services is most likely to originate at the department level. However, managers from other functional areas are equally likely to get involved in decisions to outsource. The level of commitment to the utilization of IT services providers has been somewhat encouraging with about 40 percent of the firms responding to this survey characterizing their commitment as moderate to extensive. To the IT service providers, this should be seen as an opportunity to improve the services and tap into a potential market. Further evidence of the scope of IT services can be seen from the high percentage of IT budget spending by firms in the kingdom. Over 60 percent of firms’ outsourcing IT functions spends 20-50 percent of their total IT budget on contract providers. This should be reassuring to IT service providers. As the findings suggest, companies outsource for several reasons in the kingdom. The findings are consistent with previous studies that lack of resources is a major reason for companies to outsource (Gupta and Gupta, 1992). An implication of this finding is that new startups, small companies, and even large ones that suffer from cash flow problems can leverage on IT by outsourcing instead of committing huge capital expenditure to have it in-house. The need to focus on the core activities has been identified as the second popular reason why IT is outsourced in the kingdom. This implies that responding firms have identified the benefits of contracting out activities in which they are less competent. This enables them to focus on their core activities. With the kingdom having joined the membership of World Trade Organization (WTO), fierce competition is expected in the Saudi market, and firms will have to devise ways to gain a competitive advantage. The findings of the study are in contrast with a number of studies, which conclude cost reduction as a primary reason for of IT outsourcing (Lacity and Willcocks, 1998; Loh and Venkatraman, 1992b; McFarlan and Nolan, 1995; Willcocks et al., 1995). The study identifies lack of internal resources as the key factor that drives companies to outsource. Perhaps, this is due to a shortage of skilled labor in Saudi Arabia. The findings that IT outsourcing has positive impact on customer satisfaction implies that customer-oriented companies should consider IT outsourcing as a way of a touting their customers’ satisfaction.
Extent of future usage
Table VIII. Future usage of IT outsourcing
1-100
Firm size based on number of employees (%) 101-500 501-1,000 1,001-2,500 2,500-5,000 Over 5,000
Increase moderately 8 (12.6) 11 (17.2) 13 Increase substantially 4 (5) 27 (33.7) 17 Decrease moderately 3 (10.7) 6 (21.4) 4 Eliminate the use of contract services 0 0 0 Total 15 (8.4) 44 (24.7) 34
Total
(20.3)
5 (7.8)
2 (3.1)
25 (39)
64 (36)
(21.3)
7 (8.8)
4 (5)
21 (26.2)
80 (44.9)
(14.3)
2 (7.2)
6 (21.4)
7 (25)
28 (15.7)
(19.1)
0 14 (7.8)
3 (50) 56 (31.5)
6 (3.4) 178 (100)
3 (50) 15 (8.5)
Conclusions This study provides a comprehensive analysis of primary determinants of usage of IT services in diverse sectors of Saudi Arabia. The results presented make a significant contribution to the growing body of literature on the subject as this is the only known empirical study of this nature. We believe that there is a great potential for further enhancing the use of IT outsourcing services for a number of reasons. Historically, the trend among firms in Saudi Arabia has been to outsource business functions. Second, Saudi Arabia had made significant strides in industrial development. More opportunities for IT service providers are certain to emerge with the economy entering a new phase of development since its joining the WTO. The government policy has been to boost the private sector, which is seen as an engine for growth. Finally, as this study has revealed, a large proportion of firms have indicated an increase in future use of outsourcing services. This study is, particularly useful to IT service providers who are considering the Middle East as a potential market. While this aims to provide a focus on the current situation in Saudi Arabia, the study itself is not entirely free from limitations. The limited sample size is one among them. More empirical work, with larger samples, is needed to generalize findings. The results of the study must, therefore, be treated with caution. While this study provides a comprehensive comparative analysis of the current situation of IT outsourcing in Saudi Arabia, there are several worthwhile directions for further work on this topic. One area is to examine the trends over time. It is suggested that similar studies be conducted in the future to provide insights into the trends and direction of the different practices relating to IT outsourcing. References Acharya, P. and Mahanty, B. (2007), “Manpower shortage crisis in Indian information technology industry”, International Journal of Technology Management, Vol. 38 No. 3, pp. 235-47. Beaumont, N. and Costa, C. (2002), “Information technology outsourcing in Australia”, Information Resources Management Journal, Vol. 15 No. 3, pp. 14-31. Cheon, M.J., Grover, V. and Teng, J.T.C. (1995), “Theoretical perspective on the outsourcing of information systems”, Journal of Technology Information, Vol. 10, pp. 209-19. Chou, D.C. (2007), “An investigation into IS outsourcing success: the role of quality and change management”, International Journal of Information Systems and Change Management, Vol. 2 No. 2, pp. 190-204. Dhar, S. and Balakrishnan, B. (2006), “Risks, benefits, and challenges in global IT outsourcing: perspectives and practices”, Journal of Global Information Management, Vol. 14 No. 3, pp. 39-64. Due, R.T. (1992), “The real costs of outsourcing”, Information Systems Management, Vol. 9 No. 1, pp. 78-81. Geibstein, E. (2002), “Outsourcing”, in Bidgoli, H., Eom, S.B. and Prestage, A. (Eds), Encyclopedia of Information Systems, Academic Press, San Diego, CA, pp. 428-30. Gupta, U.G. and Gupta, A. (1992), “Outsourcing the IS function: is it necessary for your organization?”, Information Systems Management, Vol. 9 No. 3, pp. 44-50. Kern, T., Kreijger, J. and Willcocks, L. (2002), “Exploring ASP as sourcing strategy: theoretical perspectives, propositions for practice”, Journal of Strategic Information Systems, Vol. 11 No. 2, pp. 53-177.
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Further reading Amundson, S.D. (1998), “Relationships between theory-driven empirical research in operations management and other disciplines”, Journal of Operations Management, Vol. 16, pp. 341-59. Bargeron, W.N. (1993), “Coke ovens over computers”, Financial Executive, Vol. 9 No. 3, pp. 40-5. Moad, J. (1991), “A kinder, gentler EDS?”, Datamation, February 15, pp. 65-9. Teng, J.T.C., Cheon, M.J. and Grover, V. (1995), “Decisions to outsource information systems functions: testing a strategy-theoretic discrepancy model”, Decision Sciences, Vol. 26 No. 1, pp. 75-103. About the author M. Sadiq Sohail is presently an Associate Professor of Marketing at King Fahd University of Petroleum and Minerals, Saudi Arabia. Dr Sohail’s current research interests are areas of marketing in developing countries, IT, services marketing, outsourcing issues, and consumer behavior issues. He has published over 60 papers in refereed journals. His research papers have also been presented in a number of conferences across the globe. Dr Sohail currently serves as an Associate Editor of two refereed journals. He also serves in the Editorial Board of ten other international journals. M. Sadiq Sohail can be contacted at:
[email protected]
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