The determinants of IT outsourcing in the Hong Kong textiles & clothing industry

Pao Yue-kong Library Electronic Theses Database

The determinants of IT outsourcing in the Hong Kong textiles & clothing industry

 

Author: Chan, Y. M. Eddie
Title: The determinants of IT outsourcing in the Hong Kong textiles & clothing industry
Degree: D.B.A.
Year: 2003
Subject: Hong Kong Polytechnic University -- Dissertations
Clothing factories -- Data processing
Electronic data processing departments -- Contracting out
Department: Graduate School of Business
Pages: xi, 118, xxviii leaves : ill. ; 30 cm
Language: English
InnoPac Record: http://library.polyu.edu.hk/record=b1756627
URI: http://theses.lib.polyu.edu.hk/handle/200/781
Abstract: The outsourcing of Information Technology (IT) activities is vastly becoming recognized as an important function of the overall management of an organization. Many studies have been published that theorize the determinants of the decision to outsource an organizations' IT activities. However, there is a lack of a comprehensive theoretical framework that encompasses and identifies the key determinants and their relationships. Some researches have focused on economics-based determinants and theories, others invoke on technological advancements or resource concerns, whilst many other academics believe IT outsourcing is a strategic move that allows an organization to focus on its core business. The purpose of this study is to provide a framework for both companies within the textiles and clothing industry as a whole and also IT service vendors attempting to provide services to this industry. This will be achieved by developing a model based on previously well-founded determinants for costs (both in terms of IT Production and IT Transaction), the value of IT services and IT resource allocation together with the determinants for "Core Business Strategy" into an all-encompassing conceptual theory for IT outsourcing. This model will then be tested using data gathered from the top management of 61 representative companies within the Hong Kong Textile and Clothing Industry using multiple regression techniques. This study will test whether these theories and strategies hold true in such a labor-intensive industry and compare the findings to previous studies that mainly focused in the western countries and the capital-intensive sectors. Its findings will prove that basic economic principles and cost benefits are fundamental to the decision to IT outsource. However, it is also suggested that the implementation on IT business strategy and focusing the core business functions should be further investigated in order to gain competitive advantages in an ever-increasingly competitive market. Finally we will suggest these findings to industrial practitioner and IT service provider and to help them better understand about the matter regarding IT Outsourcing.

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