| Author: | Lau, Mei-bik Jessica |
| Title: | Risk factors affecting future information system outsourcing decision |
| Degree: | M.Sc. |
| Year: | 1999 |
| Subject: | Electronic data processing departments -- Contracting out Risk assessment Hong Kong Polytechnic University -- Dissertations |
| Department: | Multi-disciplinary Studies Department of Computing |
| Pages: | xi, 113, [104] leaves : ill. ; 30 cm |
| Language: | English |
| Abstract: | This paper seeks empirically to explore what risk factors affect future information system (IS) outsourcing decision of outsourcing companies or having outsourcing plan of non-outsourcing companies. Based on the past theories and research related to concept of risk and risks associated with IS outsourcing, a research model to explain the influence of risk on future IS outsourcing decision is developed and twenty-nine hypotheses are derived for empirical testing. The model posits that risk factors have an indirect effect, through undesirable consequences related to IS outsourcing, as well as a direct effect on future IS outsourcing decision. Four risk factors including vendor attitude problem, vendor competence problem, coordination problem and in-house competence problem were considered. Five undesirable consequences including loss of corporate security, degradation of IS service, loss of control, high unexpected cost, and loss of in-house IS capability were considered. A survey of 600 Hong Kong companies resulted in 148 usable responses for the data analysis. LISREL was used for statistical testing. The analysis suggests that a reasonable model fit between the model and the data. The results indicate that degradation of IS service and the loss of control have a direct effect on future IS outsourcing decision while loss of corporate security, high unexpected cost and loss of in-house IS capability do not have a direct effect on future IS outsourcing decision. Both degradation of IS service and loss of control are affected by negative vendor attitude, vendor competence problem and in-house competence problem. Of the risk factors, the results indicate that vendor competence problem and coordination problem have a direct effect on future IS outsourcing decision. From these results, managerial implications and future directions for research are discussed. |
| Rights: | All rights reserved |
| Access: | restricted access |
Files in This Item:
| File | Description | Size | Format | |
|---|---|---|---|---|
| b14895407.pdf | For All Users (off-campus access for PolyU Staff & Students only) | 4.83 MB | Adobe PDF | View/Open |
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