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Bapna R, Gupta A, Ray G, Singh S. Single-Sourcing vs. Multisourcing: An Empirical Analysis of Large Information Technology Outsourcing Arrangements. INFORMATION SYSTEMS RESEARCH 2022. [DOI: 10.1287/isre.2022.1170] [Citation(s) in RCA: 0] [Impact Index Per Article: 0] [Reference Citation Analysis] [Abstract] [Track Full Text] [Journal Information] [Subscribe] [Scholar Register] [Indexed: 11/06/2022]
Abstract
Single-Sourcing Versus Multisourcing: An Empirical Analysis of Large Information Technology Outsourcing Arrangements Policy Abstract As the information technology (IT) services landscape matures, clients are increasingly adopting multisourcing arrangements that involve multiple vendors. Although a large body of IS literature addresses issues of whether to outsource (to a single vendor), what types of contracts to use, and how to achieve optimal relational governance, little is known about the antecedents and consequents of the single versus multisourcing decision. Moreover, although conceptual and analytical models of single-sourcing versus multisourcing have been developed, there is no empirical IS research using a large-scale data set with rigorous econometric analysis that examines the antecedents and consequents of multisourcing in the IT context. This paper fills this void, using the transaction cost economic lens and a data set of 49,057 large IT outsourcing arrangements that spans multiple industries and dates back 25 years. For managers who plan to multisource IT outsourcing arrangements, this research provides guidance to minimize exchange hazards through a better understanding of the relationship between sourcing choice, client IT outsourcing capabilities, the competitiveness of the vendor landscape, and the number of IT services in an IT outsourcing arrangement. We provide empirical evidence that the choice between single-sourcing and multisourcing is material to the performance of outsourcing contracts, as an incorrect sourcing choice is likely to result in negative contract outcomes.
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Affiliation(s)
- Ravi Bapna
- Information and Decision Sciences Department, Carlson School of Management, University of Minnesota, South Minneapolis, Minnesota 55455
| | - Alok Gupta
- Information and Decision Sciences Department, Carlson School of Management, University of Minnesota, South Minneapolis, Minnesota 55455
| | - Gautam Ray
- Information and Decision Sciences Department, Carlson School of Management, University of Minnesota, South Minneapolis, Minnesota 55455
| | - Shweta Singh
- Information Systems and Management Department, Warwick Business School, University of Warwick, Coventry CV4 7AL, United Kingdom
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Strategic innovation through outsourcing – A theoretical review. JOURNAL OF STRATEGIC INFORMATION SYSTEMS 2022. [DOI: 10.1016/j.jsis.2022.101718] [Citation(s) in RCA: 2] [Impact Index Per Article: 1.0] [Reference Citation Analysis] [Track Full Text] [Subscribe] [Scholar Register] [Indexed: 11/22/2022]
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Outsourcing for Sustainable Performance: Insights from Two Studies on Achieving Innovation through Information Technology and Business Process Outsourcing. SUSTAINABILITY 2022. [DOI: 10.3390/su14042102] [Citation(s) in RCA: 0] [Impact Index Per Article: 0] [Reference Citation Analysis] [Abstract] [Track Full Text] [Subscribe] [Scholar Register] [Indexed: 11/17/2022]
Abstract
(1) Background: To obtain sustainable performance through outsourcing, organizations must balance the inherent tension between pursuing cost-saving initiatives (i.e., efficiency) and pursuing innovative initiatives (e.g., developing new products). This study aims to explore this tension by exploring different ways that organizations can pursue both efficiency and innovativeness, through their IT outsourcing (ITO) and business process outsourcing (BPO). (2) Methods: This study utilizes a configurational approach in two inductive studies, both using qualitative comparative analysis (QCA). The first study qualitatively compares 27 firms currently doing ITO, while the second study compares 60 firms doing either ITO or BPO. (3) Results: Our findings suggest three configurations, or combination of conditions, that enable efficiency and innovation through ITO and BPO. For ITO, firms can use a best-of-breed or a mediated multi-outsourcing configuration to enable innovation; however, firms can only use a direct multi-outsourcing configuration to enable innovation through BPO. (4) Conclusions: The study is among the first to explore both ITO and BPO practices that enable innovation and efficiency simultaneously (sustainable performance). In contrast with prior studies, all three aforementioned configurations suggest that having detailed outsourcing contracts is a necessary but not sufficient condition for innovation through outsourcing.
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Nakanishi Y. Interplay between coopetition and institutions: How Japanese airlines enhance bargaining power. JOURNAL OF CO-OPERATIVE ORGANIZATION AND MANAGEMENT 2020. [DOI: 10.1016/j.jcom.2020.100120] [Citation(s) in RCA: 4] [Impact Index Per Article: 1.0] [Reference Citation Analysis] [Track Full Text] [Subscribe] [Scholar Register] [Indexed: 11/30/2022]
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Findikoglu NM, Ranganathan C, Watson-Manheim MB. Partnering for prosperity: small IT vendor partnership formation and the establishment of partner pools. EUR J INFORM SYST 2020. [DOI: 10.1080/0960085x.2020.1750309] [Citation(s) in RCA: 2] [Impact Index Per Article: 0.5] [Reference Citation Analysis] [Track Full Text] [Journal Information] [Subscribe] [Scholar Register] [Indexed: 10/24/2022]
Affiliation(s)
| | - Chandrasekaran Ranganathan
- Information and Decision Sciences, College of Business Administration, University of Illinois, Chicago, IL, USA
| | - Mary Beth Watson-Manheim
- Information and Decision Sciences, College of Business Administration, University of Illinois, Chicago, IL, USA
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Oshri I, Dibbern J, Kotlarsky J, Krancher O. An Information Processing View on Joint Vendor Performance in Multi-Sourcing: The Role of the Guardian. J MANAGE INFORM SYST 2019. [DOI: 10.1080/07421222.2019.1661091] [Citation(s) in RCA: 6] [Impact Index Per Article: 1.2] [Reference Citation Analysis] [Track Full Text] [Journal Information] [Subscribe] [Scholar Register] [Indexed: 10/25/2022]
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Exploring complexity and contradiction in information technology outsourcing: A set-theoretical approach. JOURNAL OF STRATEGIC INFORMATION SYSTEMS 2019. [DOI: 10.1016/j.jsis.2019.07.001] [Citation(s) in RCA: 10] [Impact Index Per Article: 2.0] [Reference Citation Analysis] [Track Full Text] [Subscribe] [Scholar Register] [Indexed: 11/22/2022]
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Plugge A, Bouwman H. Tensions in Global IT Multisourcing Arrangements: Examining the Barriers to Attaining Common Value Creation. JOURNAL OF GLOBAL INFORMATION TECHNOLOGY MANAGEMENT 2018. [DOI: 10.1080/1097198x.2018.1536595] [Citation(s) in RCA: 1] [Impact Index Per Article: 0.2] [Reference Citation Analysis] [Track Full Text] [Subscribe] [Scholar Register] [Indexed: 10/27/2022]
Affiliation(s)
- Albert Plugge
- Policy and Management, Delft University of Technology, Delft, The Netherlands
| | - Harry Bouwman
- Policy and Management, Delft University of Technology, Delft, The Netherlands
- Business and Economics, Åbo Akademi University, Turku, Finland
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Galliers R, Jarvenpaa S. Welcome to the first issue of Volume 27 of The Journal of Strategic Information Systems. JOURNAL OF STRATEGIC INFORMATION SYSTEMS 2018. [DOI: 10.1016/j.jsis.2018.02.001] [Citation(s) in RCA: 1] [Impact Index Per Article: 0.2] [Reference Citation Analysis] [Track Full Text] [Subscribe] [Scholar Register] [Indexed: 11/26/2022]
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Coopetition as the new trend in inter-firm alliances: literature review and research patterns. REVIEW OF MANAGERIAL SCIENCE 2017. [DOI: 10.1007/s11846-017-0245-0] [Citation(s) in RCA: 40] [Impact Index Per Article: 5.7] [Reference Citation Analysis] [Track Full Text] [Subscribe] [Scholar Register] [Indexed: 10/19/2022]
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Koo Y, Lee JN, Heng CS, Park J. Effect of multi-vendor outsourcing on organizational learning: A social relation perspective. INFORMATION & MANAGEMENT 2017. [DOI: 10.1016/j.im.2016.09.007] [Citation(s) in RCA: 10] [Impact Index Per Article: 1.4] [Reference Citation Analysis] [Track Full Text] [Subscribe] [Scholar Register] [Indexed: 11/15/2022]
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Review of the Empirical Business Services Sourcing Literature: An Update and Future Directions. JOURNAL OF INFORMATION TECHNOLOGY 2016. [DOI: 10.1057/jit.2016.2] [Citation(s) in RCA: 55] [Impact Index Per Article: 6.9] [Reference Citation Analysis] [Track Full Text] [Subscribe] [Scholar Register] [Indexed: 11/21/2022]
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Galliers R, Jarvenpaa S. Editorial. JOURNAL OF STRATEGIC INFORMATION SYSTEMS 2015. [DOI: 10.1016/j.jsis.2015.10.001] [Citation(s) in RCA: 0] [Impact Index Per Article: 0] [Reference Citation Analysis] [Track Full Text] [Subscribe] [Scholar Register] [Indexed: 11/30/2022]
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