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研究生： 韋司比
Keith Westby
論文名稱： Offshore Outsourcing of Information Systems: A Transaction Cost Theory Case Study of Taiwan Companies
指導教授： 陳鴻基
Houn-Gee Chen
口試委員:
學位類別： 碩士
Master
系所名稱： 科技管理學院 - 科技管理研究所
Institute of Technology Management
論文出版年： 2005
畢業學年度： 93
語文別： 英文
論文頁數： 116
中文關鍵詞： Offshore Outsourcing 、Transaction Cost Theory 、Information Systems 、Belize City, Belize
外文關鍵詞： Offshore Outsourcing, Transaction Cost Theory, Information Systems, Belize City, Belize
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    • This is a case study attempted to determine the drivers in the outsourcing decisions of companies that have done substantial outsourcing of information systems and how they interpret the decision making from a transaction cost perspective in the Taiwan industrial sector. The research put forth the concept that a focus on economic theories and business models can improve our understanding to explain offshore outsourcing within the larger organizational framework. More specifically, the research constructs of production cost advantages, transaction costs and maintenance costs are investigated simultaneously to understand the degree of success of outsourcing decision making. Furthermore, the three constructs were empirically tested and data was collected from senior executive and IT professionals in the Taiwan industrial sector. The results of the study were analyzed and illustrates that the degree of IS offshore outsourcing was positively influenced by production cost advantages offered by external vendors. Transaction costs were very significant and played an important aspect in the degree of outsourcing decisions; however, was much smaller in magnitude. Maintenance cost was positive and statistically significant on the success of the IS outsourcing and influenced outsourcing decision making. Hence, it was downplayed by managers on the degree of outsourcing, but served as an explanatory variable on the success of the outsourcing initiative. Finally, the implications of this study provide evidence on the economic factors of production, transaction and maintenance cost for manager engaged in outsourcing. Therefore, the findings suggests that managers need to evaluate and balance production cost, transaction costs and maintenance costs when hiring external offshore service providers.

    This is a case study attempted to determine the drivers in the outsourcing decisions of companies that have done substantial outsourcing of information systems and how they interpret the decision making from a transaction cost perspective in the Taiwan industrial sector. The research put forth the concept that a focus on economic theories and business models can improve our understanding to explain offshore outsourcing within the larger organizational framework. More specifically, the research constructs of production cost advantages, transaction costs and maintenance costs are investigated simultaneously to understand the degree of success of outsourcing decision making. Furthermore, the three constructs were empirically tested and data was collected from senior executive and IT professionals in the Taiwan industrial sector. The results of the study were analyzed and illustrates that the degree of IS offshore outsourcing was positively influenced by production cost advantages offered by external vendors. Transaction costs were very significant and played an important aspect in the degree of outsourcing decisions; however, was much smaller in magnitude. Maintenance cost was positive and statistically significant on the success of the IS outsourcing and influenced outsourcing decision making. Hence, it was downplayed by managers on the degree of outsourcing, but served as an explanatory variable on the success of the outsourcing initiative. Finally, the implications of this study provide evidence on the economic factors of production, transaction and maintenance cost for manager engaged in outsourcing. Therefore, the findings suggests that managers need to evaluate and balance production cost, transaction costs and maintenance costs when hiring external offshore service providers.

    TABLE OF CONTENTS Acknowledgements 2 Abstract…………..………………………………………………………………………3 Chapter 1: Introduction ……10 1.3 Research Purpose 14 1.4 Research Questions 15 1.5 Definition of Terms 15 1.6 Research Significance 16 1.7 Flow of the Research 17 Chapter 2: Review of Related Literature 2.1 Introduction 18 2.2 What is Outsourcing? 18 2.2.1 Trends in Outsourcing 19 2.2.2 Outsourcing Drivers 20 2.2.3 Offshore Outsourcing Themes 21 2.2.4 Offshore Adoption 24 2.3 Outsourcing Business Model and Management 26 2.3.1 Third Party Vendor 29 2.3.2 Joint Venture (Collaborative) 30 2.3.3 Completely Owned Subsidiary 31 2.4 Theoretical Framework: Transaction Cost Theory 31 2.4.1 Costs..... 34 2.4.2 Transaction Types and Characteristics 36 2.5 Chapter Summary ..... 41 Chapter 3: Research Model and Methodology 3.1 Introduction 42 3.2 Research Model 43 3.3 Construct Development and Hypotheses 45 3.4 Definition of Constructs 45 3.4.1 Production Cost Advantage 45 3.4.2 Transaction Cost 46 3.4.3 Maintenance Cost 47 3.5 Research Methodology 49 3.6 Sample Description 50 3.7 Questionnaire Development and Design 51 3.8 Limitations of the Study 55 3.9 Chapter Summary 56 Chapter 4: Analysis of Data and Discussion of Findings 4.1 Introduction 58 4.2 Analysis and Results 58 4.3 Test of Research Model 71 4.4 Statistical Analysis 74 4.5 Discussion 79 4.5.1 Production Cost Advantages Findings 79 4.5.2 Transaction Cost Findings 80 4.5.3 Maintenance Cost Findings 81 4.6 Chapter Summary 82 Chapter 5: Conclusions and Discussion 5.1 Introduction 84 5.2 Summary of Findings 85 5.3 Conclusions 88 5.4 Implications 89 5.3 Recommendations 90 References………………………… 92 Appendix Appendix A………………. ………………………………………… ……………..102 Appendix B……………………………………………………………………………110 List of Tables Table 2.1 Drivers for rapid offshore growth 20 Table 2.2 Key drivers of information systems outsourcing 21 Table 2.3 Advantages and disadvantages of outsourcing 27 Table 2.4 Offshore outsourcing business models 28 Table 2.5 Theoretical constructs of transaction cost theory 33 Table 2.6 Cost structure of markets and hierarchies 34 Table 2.7 Transaction cost governance mechanism 38 Table 3.1 Demographic Information of Sample 51 Table 3.2 Characteristics of measures 52 Table 4.1 Respondents’ demographic information 59 Table 4.2 Existence of a formal outsourcing strategy 61 Table 4.3 Outsourcing destination for development of IS 65 Table 4.4 Selection criteria for offshore vendor 67 Table 4.5 Main method of offshore outsourcing and associated business model 70 Table 4.6 Scale to measure degree of outsourcing 70 Table 4.7 Degree of outsourcing of IT functions 71 Table 4.8 Factor loading – production cost advantage 72 Table 4.9 Factor loading – transaction cost 72 Table 4.10 Factor loading – maintenance cost 73 Table 4.11 Factor loading – degree of IS outsourcing 73 Table 4.11a Factor loading – measure of success of IS outsourcing 73 Table 4.12 Reliability analysis – scale (alpha - □) 74 Table 4.13 The dependent and independent variable identification …………76 Table 4.14 Three-way model of interaction (degree of outsourcing) 78 Table 4.15 Three-way model of interaction (success of outsourcing) 77 List of Figures Figure 2.1 Economics of offshore outsourcing 25 Figure 2.2 The outsourcing curve 26 Figure 2.3 The two-dimensions of outsourcing business models 29 Figure 3.1 Research model for outsourcing study 44 Figure 4.1 Industry sectors outsourcing 60 Figure 4.2 Currently outsourcing with a formal strategy 61 Figure 4.3 Percentage of IT functions outsourced 62 Figure 4.4 Reasons not to outsource IT functions offshore 63 Figure 4.5 Top strategic drivers of offshore outsourcing 64 Figure 4.6 Functions currently outsourcing 66 Figure 4.7 Selection criteria for offshore vendor 68 Figure 4.8 Ownership model for offshore outsourcing 69 Figure 4.9 Three-way model of interaction (degree of outsourcing) 76 Figure 4.10 Three-way model of interaction (success of outsourcing) 78

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