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Effects of initial and ongoing trust in IT outsourcing: A bilateral perspective By Jae-Nam Lee , Byounggu Choi
Effects of initial and ongoing trust in IT outsourcing: A bilateral perspective By Jae-Nam Lee , Byounggu Choi
Effects of initial and ongoing trust in IT outsourcing: A bilateral perspective By Jae-Nam Lee , Byounggu Choi
Effects of initial and ongoing trust in IT outsourcing: A bilateral perspective By Jae-Nam Lee , Byounggu Choi
Effects of initial and ongoing trust in IT outsourcing: A bilateral perspective By Jae-Nam Lee , Byounggu Choi
Effects of initial and ongoing trust in IT outsourcing: A bilateral perspective By Jae-Nam Lee , Byounggu Choi
Effects of initial and ongoing trust in IT outsourcing: A bilateral perspective By Jae-Nam Lee , Byounggu Choi
Effects of initial and ongoing trust in IT outsourcing: A bilateral perspective By Jae-Nam Lee , Byounggu Choi
Effects of initial and ongoing trust in IT outsourcing: A bilateral perspective By Jae-Nam Lee , Byounggu Choi
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Effects of initial and ongoing trust in IT outsourcing: A bilateral perspective By Jae-Nam Lee , Byounggu Choi

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outsourcing contracts are often very complex, it is difficult to include all rules and agreements in the contract. …

outsourcing contracts are often very complex, it is difficult to include all rules and agreements in the contract.
interactions between the participants often go beyond rules and exceptions and depend on intangible factors ,such as trust and commitment

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  1. CMGB 6322 Strategic Information Systems J O U R N A L A R T I C L E P R E S E N TAT I O N : Effects of initial and ongoing trust in IT outsourcing: A bilateral perspective By Jae-Nam Lee , Byounggu Choi Prepared by: Alireza Khosroyar
  2. EFFECTS OF INITIAL AND ONGOING TRUST IN IT OUTSOURCING PRESENTATION OUTLINE • Introduction • Theoretical Development • Methodology • Research Findings • Managerial Implications CMGB 6322-Strategic Information Systems
  3. EFFECTS OF INITIAL AND ONGOING TRUST IN IT OUTSOURCING Introduction- Background • the global outsourcing market : – US$340 billion in 2007, – increase to US$509 billion by 2012, – annual growth rate of 8.4% • However, there have been few reports about its successful ROI. • outsourcing contracts are often very complex, it is difficult to include all rules and agreements in the contract. • interactions between the participants often go beyond rules and exceptions and depend on intangible factors ,such as trust and commitment • More flexible relationship more trust CMGB 6322-Strategic Information Systems
  4. EFFECTS OF INITIAL AND ONGOING TRUST IN IT OUTSOURCING Introduction – the importance of this research • Prior studies generally are cross-sectional but this research studies the change of trust over time. • Outsourcing from the perspectives of both participants. – Service receiver – Service provider CMGB 6322-Strategic Information Systems
  5. EFFECTS OF INITIAL AND ONGOING TRUST IN IT OUTSOURCING Theoretical Development • Initial trust vs. ongoing trust – Trust is a dynamic process. • Example: Team cohesion – it is process-oriented rather than outcome- or input-oriented concept. • Initial Trust : is not based on any prior experience but on an assumption. tendency of a group to remain united • Ongoing Trust : result from observing actual interaction . – It is likely to be modified over time due to experiences and interactions with partners. CMGB 6322-Strategic Information Systems
  6. EFFECTS OF INITIAL AND ONGOING TRUST IN IT OUTSOURCING Theoretical Framework CMGB 6322-Strategic Information Systems
  7. EFFECTS OF INITIAL AND ONGOING TRUST IN IT OUTSOURCING Research Methodology Phase 1 : Service receivers : 2000 large listed firms 535 firms were willing to participate Phone call to 1750 455 service receivers responded (85%) 415 After Eliminating missing data Phase1 , Service Provider Service Provider: 340 Phase1 , Service Receiver 232 responses were received 215 After eliminating missing data Phase 2: Phase 2 , Service Provider 340 Questioners Sent 205 Received 189 After elimination Phase2 , Service Receiver 169 received 148 After elimination CMGB 6322-Strategic Information Systems
  8. EFFECTS OF INITIAL AND ONGOING TRUST IN IT OUTSOURCING Findings     Service Receiver Perspective        Service Provider Perspective          CMGB 6322-Strategic Information Systems
  9. EFFECTS OF INITIAL AND ONGOING TRUST IN IT OUTSOURCING Managerial Implications  the role of ongoing trust and distrust is significant in understanding the success of IT outsourcing initiatives. increasing initial trusting belief minimizing initial distrusting belief Forming appropriate favorable expectations Fostering an environment that encourages ongoing positive belief Successful Outsourcing  knowledge sharing would draw both the provider and the receiver together in a shared vision and provide a common goal. CMGB 6322-Strategic Information Systems

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