Skip to main content

The Role of Organizational Standards in IT Outsourcing Relations

  • Conference paper

Part of the book series: Lecture Notes in Business Information Processing ((LNBIP,volume 163))

Abstract

In the last two decades the IT Outsourcing (ITO) academic literature has examined multiple aspects of the outsourcing phenomenon. In this paper we focus on the role and the impact of organizational standards on IT outsourcing relations. We look at organizations regulated by explicit standard models, characterized by system-supported supervision, programmed routines, and hyper-automation. We did so by analyzing the impact of a consolidated standard, the IT Infrastructure Library (ITIL), on the governance of IT service management. This quantitative study is based on the analysis of 200 questionnaire answered by Italian CIOs in 2011, aimed at understanding the role of ITIL and its effects on the relationship between buyers and suppliers. Our findings show a positive relation between the adoption of ITIL and the presence of outsourcing arrangements, and give some hints about the impact of the adoption of standards on governance mechanisms, which open the field to future research.

This is a preview of subscription content, log in via an institution.

Buying options

Chapter
USD   29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD   39.99
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD   54.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Learn about institutional subscriptions

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

References

  1. Lacity, M., Khan, S.A., Willcocks, L.P.: A review of the IT outsourcing literature: Insights for practice. Journal of Strategic Information Systems 18, 130–146 (2009)

    Article  Google Scholar 

  2. Lee, J., Miranda, S., Kim, Y.: IT outsourcing strategies: universalistic, contingency, and configurational explanations of success. Information Systems Research 15(2), 110–131 (2004)

    Article  Google Scholar 

  3. Goo, J., Kishore, R., Rao, H.R., Nam, K.: The role of service level agreement in relational management of Information technology Outsourcing: An empirical study. MIS Quarterly 33(1), 119–145 (2009)

    Google Scholar 

  4. Poppo, L., Zenger, T.: Do formal contracts and relational governance functions as substitutes or complements? Strategic Management Journal 23(8), 707–725 (2002)

    Article  Google Scholar 

  5. Sabherwal, R.: The role of trust in outsourced IS development projects. Communications of the ACM 42(2), 80–86 (1999)

    Article  Google Scholar 

  6. Groth, L.: Future Organizational Design: The Scope of the IT Based Enterprise. Wiley, Chichester (1999)

    Google Scholar 

  7. Grönroos, C.: From Scientific Management to Service Management A Management Perspective for the Age of Service Competition. International Journal of Service Industry Management 5(1), 5–20 (1994)

    Article  Google Scholar 

  8. Braun, C., Winter, R.: Integration of IT service management into enterprise architecture. In: Proceedings of the 2007 ACM Symposium on Applied Computing Seoul, Korea (2007)

    Google Scholar 

  9. Johnson, M.W., Hately, A., Miller, B.A., Orr, R.: Evolving Standards for IT Service Management. IBM Systems Journal 46, 583–597 (2007)

    Article  Google Scholar 

  10. Winniford, M., Conger, S., Erickson-Harris, L.: Confusion in the Ranks: IT Service Management Practice and Terminology. Information Systems Management 26, 153–163 (2009)

    Article  Google Scholar 

  11. Galup, S., Dattero, R., Quan, J., Conger, S.: An Overview of Information Technology Service Management. Communications of the ACM 52(5), 1–4 (2009)

    Article  Google Scholar 

  12. Feeny, D.F., Willcocks, L.P.: Core IS Capabilities for Exploiting Information Technology. Sloan Management Review 39(3), 9–21 (1998)

    Google Scholar 

  13. Ross, J., Beath, C.: Sustainable IT outsourcing: let enterprise architecture be your guide. MIS Quarterly Executive 5(4), 181–192 (2006)

    Google Scholar 

  14. Rottman, J., Lacity, M.: Proven practices for effectively offshoring IT work. Sloan Management Review 47(3), 56–63 (2006)

    Google Scholar 

  15. Ranganathan, C., Balaji, S.: Critical capabilities for offshore outsourcing of IS. MIS Quarterly Executive 6(3), 147–164 (2007)

    Google Scholar 

  16. Williamson, O.E.: Markets and Hierarchies: Analysis and Antitrust Implications. Free Press, New York (1975)

    Google Scholar 

  17. Barthélemy, J.: The Hidden costs of IT outsourcing. MIT Sloan Management Review 43(3), 60–69 (2001)

    Google Scholar 

  18. Lacity, M., Hirschheim, R.: The information systems outsourcing bandwagon. Sloan Management Review 35(1), 73–86 (1993)

    Google Scholar 

  19. Saunders, C., Gelbelt, M., Qing, H.: Achieving success in information outsourcing systems. California Management Review 39(2), 63–79 (1997)

    Article  Google Scholar 

  20. Lacity, M., Willcocks, L.: Interpreting information technology sourcing decisions from a Transaction Cost Perspective: Findings and Critique. Accounting, Management, and Information Technologies 5(3), 203–244 (1996)

    Google Scholar 

  21. Granovetter, M.: Economic Action and Social Structure: The Problem of Embeddedness. The American Journal of Sociology 91(3), 481–510 (1985)

    Article  Google Scholar 

  22. Uzzi, B.: Social Structure and Competition in Interfirm Networks: The Paradox of Embeddedness. Administrative Science Quarterly 42(1), 35–67 (1997)

    Article  Google Scholar 

  23. Powell, W.W.: Neither Market nor Hierarchy: Network Forms of Organization. Research in Organizational Behavior 12, 295–336 (1990)

    Google Scholar 

  24. Lee, J.N., Kim, Y.G.: Effect of partnership quality on IS outsourcing: Conceptual framework and empirical validation. Journal of Management Information Systems 14(4), 29–61 (1999)

    Google Scholar 

  25. Macneil, I.R.: The new social contract: An inquiry into modern contractual relations. Yale University Press, New Haven (1980)

    Google Scholar 

  26. Aiken, M., Hage, J.: Organizational interdependence and intra-organizational structure. American Sociological Review 33(6), 912–930 (1968)

    Article  Google Scholar 

  27. Miranda, S.M., Kavan, C.B.: Moments of governance in IS outsourcing: conceptualizing effects of contracts on value capture and creation. Journal of Information Technology 20, 152–169 (2005)

    Article  Google Scholar 

  28. Rousseau, D.M.: Psychological Contracts in Organizations. Sage, Thousand Oaks (1995)

    Google Scholar 

  29. Zaheer, L.G., Venkatraman, N.: Relational governance as interorganizational strategy: An empirical test of the role of trust in economic exchange. Strategic Management Journal 16(5), 373–392 (1986)

    Article  Google Scholar 

  30. Nickerson, J.V., zur Muehlen, M.: The Ecology of Standards Processes: Insights from Internet Standard Making. MIS Quarterly 30(special issue), 467–488 (2006)

    Google Scholar 

  31. David, P.A.: Some New Standards for the Economics of Standardization in the Information Age. In: Dasgupta, P., Stoneman, P.L. (eds.) The Economic Theory of Technology Policy. Cambridge University Press, London (1987)

    Google Scholar 

  32. Shapiro, C., Varian, H.R.: Information Rules, A Strategic Guide to the Network Economy. Harvard University Press, Boston (1999)

    Google Scholar 

  33. David, P.A., Greenstein, S.: The Economics of Compatibility Standards: An Introduction to Recent Research. Econ. Innov. New Techn. 1, 3–41 (1990)

    Article  Google Scholar 

  34. Riley, D.: Factors affecting the pursuit of standards: a theoretical framework. The Marketing Review 7(2), 139–154 (2007)

    Article  Google Scholar 

  35. Virili, F.: Standard e Organizzazioni. Appunti Per Una Ricerca, Dipartimento Impresa e Lavoro, Università Degli Studi Di Cassino Collana Economia e Diritto, Quaderno n. 22 (2003)

    Google Scholar 

  36. Mintzberg, H.: The Structuring of Organizations: A Synthesis of the Research. Prentice-Hall, Englewood Cliffs (1979)

    Google Scholar 

  37. Thompson, J.: Organizations in action. McGraw-Hill, New York (1967)

    Google Scholar 

  38. Galbraith, J.: Designing complex organizations. Addison-Wesley, MA (1973)

    Google Scholar 

  39. Grover, V., Cheon, M., Teng, J.: The effect of service quality and partnership on the outsourcing of information systems functions. Journal of Management Information Systems 12(4), 89–116 (1996)

    Google Scholar 

  40. Zirpoli, F.: Organizzare l’innovazione. Strategie di esternalizzazione e processi di apprendimento in Fiat Auto, il Mulino, Bologna (2010)

    Google Scholar 

  41. Brenner, M.: Classifying ITIL Processes. A Taxonomy under Tool Support Aspects. In: Proceedings of First IEEE/IFIP International Workshop on Business-Driven IT Management (2006)

    Google Scholar 

  42. Dillman, D.A.: Mail and Telephone Surveys: The Total Design Method. Wiley & Sons, New York (1978)

    Google Scholar 

  43. Dillman, D.A., Tamai, J.: Mode effects of cognitively designed recall question: A comparison of answers to telephone and mail surveys. In: Biemer, P. (ed.) Measurement Errors in Surveys. Wiley & Sons, New York (1991)

    Google Scholar 

  44. Dhebar, A.: Complementarity, Compatibility, and Product Change, Breaking with the Past? Journal of Product Innovation Management 12(2), 136–152 (1995)

    Article  Google Scholar 

  45. Farrell, J., Saloner, G.: Standardization, Compatibility and Innovation. Journal of Economics 16(1), 70–83 (1985)

    Google Scholar 

  46. Farrell, J., Saloner, G.: Installed base and Compatibility, Innovations, Product Preannouncements, and Predation. American Economic Review 76(5), 940–955 (1986)

    Google Scholar 

Download references

Author information

Authors and Affiliations

Authors

Editor information

Editors and Affiliations

Rights and permissions

Reprints and permissions

Copyright information

© 2013 Springer-Verlag Berlin Heidelberg

About this paper

Cite this paper

Moretti, A., Vaia, G., Zirpoli, F. (2013). The Role of Organizational Standards in IT Outsourcing Relations. In: Oshri, I., Kotlarsky, J., Willcocks, L.P. (eds) Advances in Global Sourcing. Models, Governance, and Relationships. Global Sourcing 2013. Lecture Notes in Business Information Processing, vol 163. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-40951-6_3

Download citation

  • DOI: https://doi.org/10.1007/978-3-642-40951-6_3

  • Publisher Name: Springer, Berlin, Heidelberg

  • Print ISBN: 978-3-642-40950-9

  • Online ISBN: 978-3-642-40951-6

  • eBook Packages: Computer ScienceComputer Science (R0)

Publish with us

Policies and ethics