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This study investigates the domain of IT outsourcing (ITO), focusing on its implications for organisational success or failure, and its impact on innovation. Through a comprehensive literature review, significant gaps were identified, including a lack of empirical studies assessing ITO outcomes for organisations, how ITO impacts innovation, and if an organisation's industry impacts ITO success. In response, three research questions are formulated to address the identified gaps, leading to the creation of a novel conceptual model designed to evaluate the influence of ITO on organisations. Employing a deductive approach, the model informed a triangulation research approach, combining quantitative and qualitative data. A survey garnered responses from 112 senior IT professionals across three industries, complemented by eight interviews with senior and executive management. Findings indicate a concerning rate of perceived ITO failures and reveal that the specific industry of an organisation can affect ITO success. The study also concludes that ITO adversely impacts organisational innovation. Based on these insights, eight best practices are recommended to enhance ITO outcomes, including market research on vendor skillsets and experience, the establishment of well-structured contracts, adherence to SLAs without grace periods, shorter project durations, multi-sourcing strategies, bolstering internal IT capabilities, helping employees to understand ITO value, and rigorous governance. Acknowledging its limitations, this paper calls for future research involving broader industry representation and larger sample sizes to validate and expand upon these findings. [ABSTRACT FROM AUTHOR]

With the increasing digitization and networking of medical data and personal health information, information security has become a critical factor in vendor selection. However, limited understanding exists regarding how information security influences vendor selection. Drawing from the attention‐based view (ABV), this study examines the potential impact of data breaches on hospitals' selection of electronic medical record system (EMRS) vendors. To test our hypotheses, we compile a unique dataset spanning 12 years of observations from US hospitals. Utilizing a coarsened exact matching (CEM) technique combined with a difference‐in‐differences (DiD) approach, our study shows that hospitals tend to replace their EMRS vendors after experiencing data breaches. Moreover, breached hospitals tend to prioritize information security in such a vendor replacement process by switching to star vendors and migrating towards a single‐sourcing configuration. Further post‐hoc analyses reveal that these impacts of data breaches are mitigated as the relationship between breached hospitals and vendors matures or when hospitals belong to large healthcare systems. Additionally, we find that the effects of data breaches are contingent on the scale of the breach and are short‐term in nature. This research underscores the significance of information security as a crucial consideration in vendor selection for both academia and practitioners. Highlights: We find that hospitals tend to change their electronic medical record system (EMRS) vendors following data breaches. During this replacement, they are more inclined to select star vendors and migrate towards a single‐sourcing configuration.We also find that the impacts of data breaches can be mitigated as the relationship between breached hospitals and vendors matures, or when hospitals are integrated into larger healthcare systems.Additionally, we find that the effects of data breaches are dependent on the scale of the breach and are typically short‐term in nature. [ABSTRACT FROM AUTHOR]

Purpose: The aim of the article was to examine the factors of increasing the competitiveness of enterprises by separating services in the field of information technology (IT) and their importance for enterprises. Design/methodology/approach: This study utilized a mixed-methods approach, combining quantitative data from a Likert-scale questionnaire distributed to a wide range of businesses. The research aimed to explore how IT outsourcing impacts corporate competitiveness across various dimensions. Findings: The study reveals that IT outsourcing significantly contributes to enhancing business competitiveness by offering cost savings, improved efficiency, access to advanced technologies, and allowing firms to focus on core competencies. Research limitations/implications: The study recognizes its limitations, including potential bias from self-reported data and limited generalizability due to focusing on a specific market segment. Future research will aim for wider industry representation and investigate the longterm effects of IT outsourcing. Practical implications: For practitioners, the study underscores the strategic value of IT outsourcing in achieving cost efficiency and leveraging technological advancements. It suggests a structured assessment of outsourcing opportunities, considering both operational and strategic impacts. Social implications: By delineating how IT outsourcing can drive business efficiency and innovation, the study implies broader societal benefits, such as job creation in the IT service sector and enhanced consumer experiences through higher quality products and services. Originality/value: This research advances both theoretical and practical knowledge of IT outsourcing's impact on business competitiveness, blending quantitative and qualitative data for a detailed analysis of its diverse benefits. [ABSTRACT FROM AUTHOR]

The trends show an increase in IT Outsourcing (ITO) use. Studies also show that the relationship between the provider and service buyer is vital to the success of an ITO. Therefore, there needs to be more knowledge about which Influencing Factors (IFs) should be considered in ITO relationships. This study aims to support ITO organizations by identifying the IFs in ITO relationships and facilitating successful outcomes and relationships in buyer-provider partnerships in ITO. The authors used a systematic literature review of peer-reviewed research literature from 2010 to March 2023 on ITO and then applied grounded theory to better understand the IFs in ITO relationships. The study demonstrates that the main factors (Ifs) in an ITO relationship are Contract, Commitment, Communication, Collaboration and Trust. Additionally, the ITO services' loss of competence and control has also been observed. The knowledge provided in this research closes the research gap. For the practitioners, it delivers influencing factors that should be considered for building or developing a better relationship with their providers. The study suggests practitioners concentrate their ITO improvement initiatives on trust, contract, and communication as the three most important impacting IF factors on ITO relationship. [ABSTRACT FROM AUTHOR]

This paper reviews the literature on relational dynamics in information technology outsourcing (ITO) relationships, a type of interorganizational relationship (IOR) between client and vendor firms that can vary considerably in complexity. While relational dynamics are understood to reflect changes in an IOR ex‐post contract which can substantially influence relationship performance and development, prior IOR research is limited in its conceptualization. The extensive ITO literature offers fertile ground for exploring this limitation but has advanced different conceptualizations and is fragmented in empirical findings, which warrants a systematic assessment. We conduct an integrative review of 127 peer‐reviewed empirical studies to enhance our understanding of the constituents of relational dynamics. The findings reveal that relational dynamics involve the occurrence and management of tensions within and across four relationship development stages (transactional, strategic, transformational, and termination). For each stage and between stages, we identify the main tension, the firms' strategies to manage the tension, and the outcomes. Based on these findings, we develop an integrative framework that offers a comprehensive and multifaceted conceptualization of relational dynamics, revealing that as ITO arrangements progress (or regress), partner firms are confronted with structural and transitional tensions inherent in relationship stability and instability. Based on this framework, we offer future directions for developing a more comprehensive understanding of relational dynamics in ITO and, more broadly, IORs. [ABSTRACT FROM AUTHOR]

Purpose: This paper aims to explain how small- and medium-sized firms (SMEs) create information technology (IT) business value through blended IT outsourcing (ITO). The explanatory framework it proposes enables SMEs to replicate IT capability outcomes (i.e. enhance their economic, strategic and technological competences, namely, ITO success) by endorsing an ITO strategy catalyzed by IT vendor integration. Design/methodology/approach: This study uses covariance-based structural equation modeling to test the proposed research model. Data are collected from 251 knowledge-intensive business SMEs located in Science and Technology Parks in Spain. Findings: The results demonstrate empirically that SMEs can replicate IT capability benefits (i.e. enhance their non-IT competences) through blended ITO in which IT, conceptualized as a transversal supporting activity, is outsourced to an IT vendor while the value creation process remains with the buyer. The integration (i.e. process integration and information sharing) of an IT-proficient vendor catalyzes ITO success. More specifically, the results show that, although process integration is not directly related to competence enhancement, fosters information sharing, which directly facilitates ITO success. The results also show that IT vendor proficiency accounts for ex ante trust. Practical implications: Managers should think of transformational ITO as a strategy to enhance firm competences. For blended ITO strategies to succeed, managers must have a comprehensive understanding of the business they run, as it is important to create conditions that foster inter-firm information sharing. To achieve these conditions, managers should take special care in selecting boundary spanners, who are the pivotal links in competence enhancement. Originality/value: While most research focuses on ongoing trust (i.e. trust develops as ITO evolves), this study focuses on initial (i.e. ex ante) trust and analyzes IT vendor proficiency (expert, experienced and reputed) to examine trust as an antecedent of ITO. This study also draws on previous conceptualizations of vendor integration to develop and analyze a two-step integration model to explain how IT vendor integration (i.e. process integration and information sharing) catalyzes enhancement of the buyer's non-IT competences. This study focuses on SMEs, which are often neglected in ITO studies. [ABSTRACT FROM AUTHOR]

Background: Information systems outsourcing (ISO) is one of the critical businesses in information technology outsourcing (ITO). Due to the increasing complexity of ISO, the failure rate of such outsourcing increases. Outsourcing information system services (OISS) was thus proposed to deal with this. A conceptual framework based on the information processing view was developed to investigate how the client firms assess OISS goal performance. Governance mechanisms (governance structure, relational governance, and IT coordination) were treated as antecedents of transaction cost and outsourcing flexibility; these would further affect goal performance (goal achievement and goal exceedance) with task complexity as a moderator. Method: A mix-methods study was conducted; the qualitative approach was employed to validate the conceptual framework by interviewing three managers with experiences in OISS from the client firms, whereas the quantitative approach, with 206 responses from those with OISS experiences from the client firms, provides empirical evidence. Results: The results indicated that relational governance effectively reduced transaction cost and increased outsourcing flexibility; the governance structure was also vital for outsourcing flexibility. Transaction cost was found to negatively affect goal achievement, and outsourcing flexibility positively affected both goal achievement and goal exceedance. The moderating effects of task complexity were also confirmed. Conclusion: The results extended the information processing view to OISS and proved that transaction cost and outsourcing flexibility are necessary to link governance mechanisms and goal performance. Practically, the client firms are suggested to maintain a positive relationship with the OISS provider. The OISS provider should offer an exclusive channel during and after the execution of the OISS project to reduce the possible cost that occurs during the implementation and improve the outsourcing flexibility to allow the client firms to consider their goals have been achieved and beyond their expectations. By doing so, the effect of goal performance can be maximized. [ABSTRACT FROM AUTHOR]

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. As the information technology (IT) services landscape matures, clients are increasingly adopting multisourcing arrangements that involve multiple vendors. Although a large body of information systems (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, while 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. We find that there is a curvilinear relationship between number of IT services in an IT outsourcing arrangement and the likelihood of multisourcing. This relationship increases as the number of IT services increases to up to five services and then decreases. 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. History: Paul A. Pavlou, Senior Editor; Ning Su, Associate Editor. [ABSTRACT FROM AUTHOR]

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So, combined with a potential shift toward more commoditized skillsets as well as toward workplace culture and norms that are less impactful on the lives of IT workers, to what extent will fit contribute to embedding IT professionals within organizations? In this editorial, we suggest taking an embeddedness approach to study IT professionals will offer a more nuanced view of the changing nature of IT labor and the dynamics between IT talent and employers worldwide (Pratt, [15]). So let's consider how the global hunger for IT talent combines with the inherently flexible and digital nature of IT work to shift power toward IT workers in terms of demanding more accommodations from employers. These modern, global IT talent-sourcing structures and work arrangements directly impact IT professionals' work experiences, behaviors, and decision-making. [Extracted from the article]

Mick Marchington's highly innovative research and writings on 'Fragmenting Work' have transformed our understanding of organisations, human resource management (HRM) and the world of work. He led a series of in‐depth case studies of networked organisations—including airport operations, supply chains, multi‐client call centres, public‐private partnerships and information technology outsourcing—and argued for the significance of inter‐organisational networks in directly informing HRM theory and also shaping HRM practice. The resulting highly cited body of published work captured and further developed Mick's intellectual interests in pluralism and complexity in relation to HRM theory. In this article, we reflect on Mick's theoretical contributions and also consider how core theoretical insights derived from the Fragmenting Work research programme can be applied to new questions about the future of work concerning digital platforms, career ladders and global supply chains. [ABSTRACT FROM AUTHOR]

Cloud computing has completely revolutionized the concept of computing by providing users with always-accessible resources. In terms of computational, storage, bandwidth, and transmission costs, cloud technology offers its users an entirely new set of advantages and cost savings. Cross-cloud data migration, required whenever a user switches providers, is one of the most common issues the users encounter. Due to smartphones' limited local storage and computational power, it is often difficult for users to back up all data from the original cloud servers to their mobile phones to upload and download the data to the new cloud provider. Additionally, the user must remember numerous tokens and passwords for different applications. In many instances, the anonymity of users who access any or all services provided by this architecture must be ensured. Outsourcing IT resources carries risks, particularly regarding security and privacy, because cloud service providers manage and control all data and resources stored in the cloud. However, cloud users would prefer that cloud service providers not know the services they employ or the frequency of their use. Consequently, developing privacy protections takes a lot of work. We devised a system of binding agreements and anonymous identities to address this problem. Based on a binding contract and admission control policy (ACP), the proposed model facilitates cross-cloud data migration by fostering cloud provider trust. Finally, Multi-Agent Reinforcement Learning Algorithm (MARL) is applied to identify and classify anonymity in the cloud by conducting various pre-processing techniques, feature selection, and dimensionality reduction. [ABSTRACT FROM AUTHOR]

Purpose: The purpose of this paper is to investigate how the power dynamics between the client firm and the supplier firm in the information technology outsourcing (ITO) supplier chain influence the supplier firm's human resource management (HRM) practices, particularly talent retention. Design/methodology/approach: A multi-case study approach was adopted comprising four supplier firms, three client firms and a total of 53 interviews. The transaction cost economics (TCE) is the theoretical lens that guides the interpretation of our findings. Findings: The power dynamics between client and supplier firms in the ITO supply chain is one underpinned by TCE theory, characterised by an asymmetric client-dominated, transactional relationship, with the client firms controlling the "why", the "what", and the "how" dimensions of their collaboration. This "three-dimensional control" led to high talent turnover in supplier firms, which boomerangs to perpetuate the power dynamic, forming "vicious cycles of talent turnover" in the ITO supplier chain. Originality/value: No previous study has analysed power dynamics as an external factor on ITO supplier firms' talent retention. The construct of the "three-dimensional-control" offers a framework to study power dynamics in the ITO supplier chain. The study's framework of the "vicious cycles of talent turnover" is the first that explains the mechanisms through which the power dynamics in the ITO influences supplier's talent retention. [ABSTRACT FROM AUTHOR]

This work presents an analytical framework for eliciting key factors for successful relationships between parties in information technology outsourcing (ITO) projects. The proposal was based on a multicriteria analysis to identify key factors within the literature that were essential for the success of projects involving IT outsourcing. Using the multicriteria analysis method PROMETHEE II, the most important key factors were ranked according to the judgment of the managers of the companies in the innovation ecosystem of Alagoas, Brazil. The study was based on thirty-one judgment criteria that, in this case, were formed by the interviewed managers and twenty-one alternatives that were the key factors identified in the literature. This work contributes to composing a reference for the analysis of ITO projects and information governance, informing which factors should be prioritized according to the desired objective of the manager within the project. From the local perspective, the survey pointed to "quality production" as the most important factor, followed by "contract", "top management engagement", "risk management", and "communication" as the most relevant factors for IT outsourcing success in the technological innovation hubs of Alagoas. [ABSTRACT FROM AUTHOR]

We examine how an IT service provider's persuasive communication related to SOC2 report findings influences management's (i.e., user-entities') perceptions of the outsourced services. Within SOC2 reports, service providers can attempt to influence management's impressions of auditor-identified issues and, due to the report's limited audience, also follow up with management about these issues. Using dual-process theories of persuasion, we predict the type of persuasion used by a service provider in a SOC2 report (contend or concede), and its consistency with follow-up persuasive appeals (contend or concede), will influence management's perceptions of the services provided. In an experiment, only when the service provider first contends the auditor's findings does a follow-up concession (rather than contention) result in more favorable perceptions. Persuasion tactics also influence management's processing of risk factors, which impact their trust in the service. Thus, IT service providers' initial and follow-up persuasive communications influence management's assessment of SOC2 auditor-identified issues. Data Availability: Data used in this study are available upon request. [ABSTRACT FROM AUTHOR]

There is a substantial body of literature on information technology (IT) outsourcing. However, little is known about employing IT outsourcing to generate innovation. In this paper, we articulate the ex ante as well as ex post contracting challenges that could preclude firms from realizing such business value through outsourcing. We develop and test a model linking innovation in IT outsourcing (process innovation and service innovation) to two complementary solutions to the contractual problems: credible commitments and contingent control rights. Alternative empirical estimation approaches support the basic thesis that contractual solutions are complementary in their association with enhanced innovation performance. Our study suggests that portfolios of complementary contractual provisions need to simultaneously address ex ante and ex post hazards through contract design in the outsourcing of innovative tasks. Theoretical and practical implications are explicated. [ABSTRACT FROM AUTHOR]

Cloud Computing (CC) is an increasingly alternative for IT Outsourcing (ITO). There is a consensus that a good ITO relationship between the service buyer and provider is a prerequisite for the success of an ITO. However, there is a lack of studies concerning the relationships between large companies owned by public organizations and CC-providers in Sweden. Consequently, there is a lack of knowledge about the risks that could jeopardize relationships between companies owned by public organizations and their CC providers. Thus, this study seeks to answer the research question: "What are the risk factors to consider for building and maintaining a successful relationship between CC-providers and companies owned by public organizations in Sweden from a buyer's perspective?". The study has identified seven most critical risk factors that should be considered to keep or build a well-working relationship between CC parties. These factors are contracts, the client's degree of expertise in IT operations, measurement problems, the Swedish Public Procurement Act, provider challenges, relatedness, and ex-ante imperfection. The findings of this study can be used by large public organizations in Sweden who plan to use or who are using CC in order to mitigate the risks in CC relationships. [ABSTRACT FROM AUTHOR]

Cloud computing is utilised for information technology outsourcing of either industries or organisations. There are several inhibitors and motivations related factors to determine whether one can embrace the cloud services or not. Therefore, this paper presents a holistic and flexible cloud decision framework by taking a wide spectrum weighted factors related to the acceptance or denial of the cloud services. To have sustainable decision and obviating the shortcomings of the existing approaches on the cloud service adoption, a deep understanding of organisation's business process requirements and cost implications is required. To utilise the proposed model, the functional and non‐functional requirements associated to the business process of an adopter organisation must be specified. To reach a concrete decision, a hybrid approach is applied by incorporating the analytic hierarchy process and Delphi methods to prevent subjective outcomes and to have diverse experiences at the same time. To support the decision model, some economic theories and Moore law are used. To verify the proposed model, a Telecommunication Company is considered as a case study for its 6‐year plan of investment. The simulation results of conducted scenarios for the mentioned mid‐scale case study prove that it is logical to establish on‐premises a private datacenter and utilising the hybrid deployment once it encounters abrupt burst of resource demand. Altogether, the proposed holistic model can be customised for different users with different scales. [ABSTRACT FROM AUTHOR]

the article reports that the digital economy allows for traditional markets to happen virtually and for new market platforms to take hold where no formal system had previously existed via Uber, Airbnb, or Match.com. Topics incldue exmaines market design applications include stable-matching mechanisms for school choice, spectrum auction design, the design of flower markets, electricity markets, dating markets and digital advertising markets.

A misincentive is characterized as an incentive producing the opposite effect of motivating or preventing some specific action. In some circumstances, contract penalties such as sanctions and fines on late delivery or low-quality software encourage the irregularities instead of preventing them from occurring. The present study models misincentive behaviors in Information Technology Outsourcing (ITO) transactions as a Principal-Agent problem. Considering the non-linear relationship in software vendors' cost structure and the client's sensitivity to the product/service quality and delivery time, we offer theoretical modeling elucidating the best responses on agreements under incomplete and asymmetric information. Some empirical evidence of contractual misincentives is reported in outsourcing arrangements between private institutions and public administrations in Portugal. The contracts were divided into three categories: pure contracts with no incentive clauses, contracts with no explicit monetary penalties, and contracts under explicit sanctions. The results suggest that the knowledge of the penalty reduces the Agent's uncertainty about the Principal's cost structure and might lead them to intentionally delay the delivery of the technology. [ABSTRACT FROM AUTHOR]

Although using a single vendor when outsourcing information technology (IT) services (i.e., single‐sourcing) is commonplace, splitting the IT service package among multiple vendors (i.e., multisourcing) is an increasingly popular strategy. However, our understanding of the factors that contribute to this trend is limited. Guided by a thorough review of the extant literature and interviews with industry experts, we focus on the influence of emerging technologies (i.e., cloud‐based services and automation services), vendor location (i.e., offshore or domestic), and experiential learning (i.e., client and vendor experience) on the choice between single‐sourcing and multisourcing for IT services. The trend towards more multisourcing exemplifies a broader movement towards greater disaggregation and distribution of knowledge work. Thus, we utilize a knowledge‐based perspective to develop our hypotheses for how the aforementioned factors relate to the likelihood of multisourcing. Analyzing a large database of IT service contracts, we find that cloud‐based services are less likely to be multisourced, but automation services are not significantly associated with the likelihood of multisourcing. We also find that more experienced client firms are more likely to adopt multisourcing. Conversely, our results indicate that more experienced vendors and vendors located offshore are less likely to be part of multisourcing arrangements. Exploratory post hoc analyses yield additional interesting insights related to client and vendor location. These findings advance our understanding of the drivers of the single‐sourcing versus multisourcing decision in IT and more broadly contribute to the literature on technology sourcing. Our study has normative implications for both client and vendor management teams. Highlights: Cloud‐based IT services are less likely to be multisourced, whereas the relationship between automation services and the multisourcing decision is more context‐specific.Vendor and client location are both consequential to the multisourcing decision as offshore vendors are less likely to be included in multisourcing arrangements and clients located in emerging economies are less likely to multisource automation services compared to clients located in more developed economies.Incumbent vendors working with experienced clients are at a greater risk of having their business disaggregated and contracted to multiple vendors, but, at the same time, this presents an opportunity for niche or specialty vendors to target experienced clients. [ABSTRACT FROM AUTHOR]

The purpose of the article is to study the key features of modern business processes and outsourcing. The subject-matter of the study is the methodological and conceptual foundations of the development process of modern business and outsourcing activities. Methodology. The research is based on a set of well-known general scientific and special methods of research in economics. In particular, the method of scientific abstraction, the method of systematic analysis, economic and mathematical modeling were used in the article. Conclusion. Many types of modern work can be outsourced. Thus, this will eventually lead to a confrontation between protected freelancers and freelancers whose employment is not regulated at the legislative level. The world is changing much faster, the labor market is undeniably affected when most jobs are simplified by technology; one of the consequences is a departure from the usual regulated labor relations and structures. The work environment and the environment are changing radically today. New forms of cooperation can take legal relations beyond legal regulation in those countries that fail to adapt their legislation in time to new rapidly evolving business strategies, which often lack the concept of territorial boundaries and mostly demand talent for effective solutions. With the help of constructed multifactor regression models, which are adequate to the available statistical and calculated data and have high degrees of significance of the estimated parameters, it is possible to predict changes in the simulated economic phenomenon as a result of changes in one or more factors. It should be noted that such models today are not sustainable in the long run, as in the Ukrainian and global economies, the external environment and its conditions change quite often. Therefore, in the future it is advisable to calculate new parameters of regression models based on the presented methods and make predictions according to the obtained data. In authors’ opinion, the main reason for the increase in the share of outsourcing in Europe in the coming years is the strengthening of competition in the world market and the growth of the euro. It is believed that traditionally vertically integrated business processes will be broken into fragments and partially outsourced. This will allow European companies to increase their revenues and production volumes.

Purpose: This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies. Design/methodology/approach: This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context. Findings: The study finds that IT capabilities acquired through an outsourced vendor can support buyers' value creation. Furthermore, the vendor's proficiency, process integration and information sharing directly and indirectly, affect IT outsourcing success. Originality/value: The briefing saves busy executives, strategists, and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy-to-digest format. [ABSTRACT FROM AUTHOR]

This work presents an analytical framework for eliciting key factors for successful relationships between parties in information technology outsourcing (ITO) projects. The proposal was based on a multicriteria analysis to identify key factors within the literature that were essential for the success of projects involving IT outsourcing. Using the multicriteria analysis method PROMETHEE II, the most important key factors were ranked according to the judgment of the managers of the companies in the innovation ecosystem of Alagoas, Brazil. The study was based on thirty-one judgment criteria that, in this case, were formed by the interviewed managers and twenty-one alternatives that were the key factors identified in the literature. This work contributes to composing a reference for the analysis of ITO projects and information governance, informing which factors should be prioritized according to the desired objective of the manager within the project. From the local perspective, the survey pointed to “quality production” as the most important factor, followed by “contract”, “top management engagement”, “risk management”, and “communication” as the most relevant factors for IT outsourcing success in the technological innovation hubs of Alagoas.

Purpose: This study aims to examine how different modes of knowledge flows affect the changes of asset specificity and how ownership control moderates the relationship between knowledge flows and asset specificity in the open innovation paradigm. Design/methodology/approach: This paper selects information technology outsourcing as the research base. It uses the feasible weighted least squares modeling method for its analysis and has collected the data from 2,369 research and development contracts of multinational vendor firms in China. Findings: The coupled and outbound knowledge flows have a direct and positive effect on asset specificity. Moreover, the results show that weak corporate control has significant moderating effects on the relationship between both coupled and outbound knowledge flows and asset specificity; the strong control positively moderates the relationship between outbound knowledge flows and asset specificity. Practical implications: In open innovation, firms build a higher degree of asset specificity to maximize the efficiency of knowledge flows, which then helps them to enhance innovation capacity and market performance. Originality/value: Preceding studies have tended to examine the influences of asset specificity as an independent variable in a closed innovation paradigm. Asset specificity is hence often left as the antecedent "black box." This paper, however, opens the "black box" of asset specificity, which is set as a dependent variable, by investigating the influences of knowledge flows on the asset specificity in the context of open innovation. It also reinterprets the role of asset specificity by adopting the lens of open innovation theory. [ABSTRACT FROM AUTHOR]

Information technology outsourcing (ITO) relationships today are facing increasingly turbulent environments. This research examines ITO performance by focusing on client firms' perceived legitimacy of vendors, termed "vendor legitimacy," consisting of pragmatic, cognitive, and moral dimensions. Based on our surveys with executives and managers at 200 ITO client firms, the study's findings present the imperative to actively manage vendor legitimacy for achieving and sustaining ITO performance. Specifically, at the strategic level, clients' perception of vendors as mutually aligned, long-term-oriented, tightly integrated partners is critical. At the operational level, clients should collaborate with vendors to design and establish interorganizational routines that undergird vendor legitimacy. At the managerial level, clients' relational governance plays a pivotal role in attaining procedural justice, ethical standards, and fairness in the interorganizational collaboration. In sum, our study suggests that creating a dedicated corporate function or unit for continually overseeing and assessing a portfolio of vendors and swiftly identifying and responding to potential issues and crises related to vendor legitimacy would be a worthwhile investment. Information technology (IT) outsourcing relationships today are facing increasingly turbulent environments. With rapid changes in technological, commercial, societal, and regulatory landscapes, client firms have to closely and continually assess the desirability and appropriateness, or legitimacy, of their vendors in such dynamic settings. In this research, the focus is on client firms' perceived legitimacy of vendors, termed "vendor legitimacy." Specifically, building on institutional theory, vendor legitimacy is conceptualized as consisting of three dimensions—pragmatic, moral, and cognitive—and is examined through their respective impacts on IT outsourcing performance. The role of key governance strategies for managing vendor legitimacy, namely, contractual governance and relational governance, are likewise explored. Results from a multiple-sourced, matched-pair, cross-industry sample of executives and managers of 185 client firms reveal that these various governance strategies exert differential impacts on the aforementioned dimensions of vendor legitimacy, which, in turn, drive performance. [ABSTRACT FROM AUTHOR]

Information Security Risk Management (ISRM) in Information Technology Outsourcing (ITO) is among the most critical and under-studied areas of ITO research. This study investigates the body of knowledge focusing on ISRM in ITO by conducting a systematic literature review (SLR) and analyzes 63 papers published between 1994 and 2020. The findings suggest that developing conceptual models or providing commentary is the most popular methodology. Most studies collect data from secondary sources instead of industry. A majority of the studies neither investigate any specific industry nor ITO orientation, i.e., client or service providers. Information security risks (ISRs) from the literature are categorized into 27 types. Most ISRs belong to operations practice, while lack of staff loyalty is the least investigated type of ISRs. Theories, frameworks and models discussed in the literature are explored. A critical analysis of the findings is conducted to identify the gaps and future directions. Since most of the literature is based on conceptual work, it is hard for practitioners to apply this knowledge in the industry unless validated by further research. Specialized literature from the perspectives of ITO orientation, industry type and demographics is required to investigate focused issues and develop accurate knowledge of ISRM in ITO. [ABSTRACT FROM AUTHOR]

It has been proven that modern information and logistic technologies are the most important resource of the post-industrial society. It was proved that not every enterprise has a possibility to ensure its information and logistic activities using its own capabilities, so the possibilities of using outsourcing systems are becoming especially relevant. General features of outsourcing of information technologies and logistic services were determined. The most important of them include the mandatory existence of interaction between a supplier and a customer regarding the business processes of an enterprise. It was substantiated that several important types of outsourcing are used in the area of intellectual innovation activities of enterprises: complete and partial outsourcing, outsourcing of a joint type, outsourcing of the intermediate type, outsourcing of intellectual and innovative type. The method for synthesis of indicators of economic efficiency of outsourcing of information and logistic services of direct and indirect action for the economic evaluation of its effectiveness was proposed. This approach makes it possible to fully evaluate the benefits of outsourcing in comparison with the variant when they are implemented by an enterprise using its own capabilities. The basis of the proposed method is the ratio of indicators that reproduce the advantages obtained due to outsourcing. The implementation of this method makes it possible to ensure an important relationship between the process of development of information or logistic service and the required quality. Studies conducted at the enterprises of the Kharkiv industrial region showed that only three out of eight studied enterprises have economic grounds for using outsourcing. From the economic point of view, it is more expedient for other enterprises to carry out information (logistic) provision of their activities using their own resources [ABSTRACT FROM AUTHOR]