Returns to Information Technology Outsourcing

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dc.contributor.authorNault, Barrie R
dc.contributor.authorHan, Kunsoon
dc.contributor.authorKauffman, Robert J.
dc.date.accessioned2015-05-25T22:04:42Z
dc.date.available2015-05-25T22:04:42Z
dc.date.issued2012-06
dc.description*INFORMS: unless published under the open access option, the publisher will provide a specific copy of the paper that can be posted to a web page https://www.informs.org/Find-Research-Publications/INFORMS-Journals/Rights-Permissions#work. Article deposited according to publisher's policy. 05/25/2015en_US
dc.description.abstractThis study extends existing information technology (IT) productivity research by evaluating the contributions of spending in IT outsourcing using a production function framework and an economy wide panel data set from 60 industries in the United States over the period from 1998 to 2006. Our results demonstrate that IT outsourcing has made a positive and economically meaningful contribution to industry output and labor productivity. It has not only helped industries produce more output, but it has also made their labor more productive. Moreover, our analysis of split data samples reveals systematic differences between high and low IT intensity industries in terms of the degree and impact of IT outsourcing. Our results indicate that high IT intensity industries use more IT outsourcing as a percentage of their output, but less as a percentage of their own IT capital, and they achieve higher returns from IT outsourcing. This finding suggests that to gain greater value from IT outsourcing, firms need to develop IT capabilities by intensively investing in IT themselves. By comparing the results from subperiods and analyzing a separate data set for the earlier period of 1987–1999, we conclude that the value of IT outsourcing has been stable from 1998 to 2006 and consistent over the past two decades. The high returns we find for IT outsourcing also suggest that firms may be underinvesting in IT outsourcing.en_US
dc.identifier.citationHan, K., Kauffman, R.J., and B.R. Nault, "Returns to Information Technology Outsourcing," Information Systems Research, 23, 2 (June 2012), 340-355.en_US
dc.identifier.doihttp://dx.doi.org/10.11575/PRISM/28756
dc.identifier.issn1526-5536 (Online)
dc.identifier.issn1047-7047 (Print)
dc.identifier.urihttp://hdl.handle.net/1880/50439
dc.language.isoenen_US
dc.publisherINFORMSen_US
dc.publisher.corporateUniversity of Calgaryen_US
dc.publisher.departmentManagement Information Systemsen_US
dc.publisher.facultyHaskayne School of Businessen_US
dc.publisher.institutionUniversity of Calgaryen_US
dc.subjectEconomic analysisen_US
dc.subjectIndustry analysisen_US
dc.subjectInformation technologyen_US
dc.subjectIT impactsen_US
dc.subjectIT intensityen_US
dc.subjectIT outsourcingen_US
dc.subjectOutput elasticityen_US
dc.subjectProduction functionen_US
dc.subjectProduction theoryen_US
dc.subjectProductivityen_US
dc.titleReturns to Information Technology Outsourcingen_US
dc.typejournal article
thesis.degree.disciplineManagement Information Systemsen_US
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