1. Presentation of findings Bjarne Berg UNCC December 5 th, 2006

2. Issue and Literature As companies have become more focused on IT expenditures over the last few years, some organizations have decided to outsource parts of their on-line transaction processing systems (OLTP). The predictive factors for success in outsourcing IT, as well as the factors actually being considered, have been established in the literature. This paper builds on this research and examines if there are different factors that are considered when outsourcing decision support systems (DSS), and if so, if there are differences in the factors considered for large, medium and small organization; or if the competitive strategies of the organizations influences the factors that are considered.

3. Measures from Literature

4. Survey Instrument

5. Responses from 5 conferences March-Nov. 2006

6. Findings – Company size matters – 2 factor Anova Note: 268 respondents did not engage in any form of outsroucing and was not planning to do so either (within 3 years) or had no responses to factors considered. Sample size is therefore 1577

7. ..

9. Significant Differences between factors considered for outsourcing OLTP Vs. DSS* *95% confidence; n=1577

10. Strategy Determination – Minikowski clustering

11. Findings Strategy Note: 44 did not identify company size, n= 1845; total return size = 1889

12. Outsourcing factors most important to a niche Strategy

13. Outsourcing factors most important to a low cost producer

14. Outsourcing factors most important to a differentiator

15. Future direction of Outsourcing

16. Lots of work left to be done Question and Answers

17. Work cited Bahli, B. and Rivard, R (2003) “A Validation of Measures associated with risk factors in information technology outsourcing”., Proceedings of the 36 th Hawaii International Conference on System Sciences, IEEE. Djavanshir, G.R. (2005) “Surveying the risks and benefits of IT outsourcing”., IT Professional Volume 7, Issue 6, Nov.-Dec. 2005 Page(s):32 - 37 Earl, M.J., (1996) “The risks of outsourcing IT”., Sloan Management Review, 37, 3, Spring, pp. 26-32. Engineering Management Journal (2005), “Outsourcing is a failure, claims survey”, Volume 6, Dec. 2004-Jan. 2005 Page(s):7 - 7 Bahli, B.; Rivard, S. (2003), “A validation of measures associated with the risk factors in technology outsourcing”, System Sciences, 2003. Proceedings of the 36th Annual Hawaii International Conference on 6-9 Jan 2003 Page(s):10 pp. Fortune (2005). “The Fortune-1000 list of the largest companies”, April 18, 2005. Gable, G.G.; Sharp, J.A. (1992), “Outsourcing assistance with computer system selection: a success factors model” System Sciences, Proceedings of the Twenty-Fifth Hawaii International Conference on Volume iii, 7-10 Jan. 1992 Page(s):566 - 577 vol.3 Gable, G.G. (1996). “Outsourcing IT advice: a success prediction model”, Information Systems Conference of New Zealand, Proceedings 30-31 Oct. 1996 Page(s):143 - 153 Goslar, Martin D. and Stephen W (1986)., “Decision Support Systems: Advantages in Consumer Marketing Settings” Journal of Consumer Marketing, Summer86, Vol. 3 Issue 3, p43, 8p.

18. Work cited Gonzalez, R., Gasco, J. and Liopis, J. (2005) “Information systems outsourcing risks: a study of large firms”. Industrial Management & Data Systems; 2005, Vol. 105 Issue 1, p45-61, 17p Internet Center for Management and Business Administration Inc. (ICMBAI) http://www.quickmba.com/strategy/competitive-advantage/ (accessed Feb. 2nd, 2006). http://www.quickmba.com/strategy/competitive-advantage/ Levina, N., Ross, J. (2003)., “Vendor’s perspectives: Exploring the value proposition in information technology outsourcing”., MIS Quarterly, Sept. Porter, M. E. (1980) “Competitive Strategy”, Free Press, NY Porter, M. E. (1985) “Competitive Advantage”, Free Press, NY Porter, M. E. (1998)., “Competitive Advantage : Creating and Sustaining Superior Performance”., Free Press; 1st P edition (June 1, 1998) ISBN: 0684841460 Porter, M. E. (2001) “Strategy and the Internet”, Harvard Business Review, March pp. 63-78. Rayport, J. and Sviokla J. (1994) “Managing the marketplace”, Harvard Business Rewvis, Nov-Dec. 1994., pp. 141-150. Rayport, J. and Sviokla J. (1995) “Exploiting the virtual value chain”, Harvard Business Rewvis, Nov-Dec. 1995., pp. 75-85. Simon, H, (1960) “The New Science of Management Decisions”., New York: Harper and Row Webster, M., Muhlemann, A. P. and Alder, C. (2000). „Decision support for the scheduling of subcontract manufacture. Wilcocks, L., Fitzgerald G., and Feeny D. (1995), “Outsourcing IT: the strategic implications”, Long Range Planning, Vol. 28. No 5, pp 59-70.