A Method for Decision Support in Information Technology Outsourcing: The Case for Large Swedish Companies

Information technology outsourcing (ITO) is a growing area. However, not all ITO experiences have been positive, as they have not delivered the cost savings or the expected IT service quality. From this perspective, a method for assessing the risk exposure (RE) in ITO would be a valuable support for IT decision makers from any large company in Sweden that plans to outsource IT. This thesis proposes a novel method for ITO.

The development of the method is based on transaction cost theory (TCT) and risk exposure (RE) and supports IT decision makers in deciding whether to outsource IT or not. The method developed in this research has been implemented in an ITO tool and has been evaluated during the last three years in two large Swedish companies with more than twenty years’ experience of ITO. Moreover, the method developed has been extended with different practices from areas like procurement, contracting and project management based on the professional experience of the author in these areas from a large Swedish company (other than the two included in this research).

The main contribution of the thesis consists of a method for assessing the risk exposure in ITO, which can support IT decision makers in determining whether to outsource IT or not. Furthermore, the thesis proposes recommendations for how to reduce the risk exposure in the IT processes intended to be outsourced.  

Keywords: information technology (IT), information technology outsourcing (ITO), information technology outsourcing tool (ITO tool), transaction cost theory (TCT), risk exposure (RE), large Swedish companies, IT decision makers.

Respondent: Georg Hodosi

Opponent: Dr. Jelena Zdravkovic, DSV

Examinator: Professor Oliver Popov, DSV

Huvudhandledare: Docent Lazar Rusu, DSV   

Tid: torsdag 27 maj, kl 13:00

Plats: DSV, Forum, Sal C, Isafjordsgatan 39, Kista