Theophanis C. Stratopoulos, Mihir A. Parikh, Peter Lane (2009) Information Technology Outsourcing Alliances: A Strategic Alternative for IT-Capable Companies
While previous research has focused on choosing between insourcing or outsourcing, no systematic attempt has been made to find a viable alternative for IT-capable companies, which need to realize optimum value from their IT capabilities. This study identifies information technology outsourcing alliances (ITOA) as a strategic alternative to generate additional value from the capabilities of internal IT organizations. By building an ITOA with complementing partners, an IT-capable company can go beyond its internal market for IT services to provide similar and, even new, IT services to third parties. Grounded in transaction cost economics, relational theory, production theory and reciprocal learning alliances view, this study suggests that the IT-capable company can earn the collaboration-, transaction-, and firm-specific quasi rents through ITOA.
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