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Identifying the Concept of Modularity in IS/IT Outsourcing Cases: Some Empirical Evidence
Abstract
Information systems and information technology (IS/IT) services are often outsourced to external partners for multiple reasons, but the main drivers are savings in cost, access to specialized expertise and technology, and focus on core competencies. The outsourcing literature is persistently reporting high failure rates in IS/IT project outsourcing. Literature suggests that the IS/IT project outsourcing is a complex maneuver, but unfortunately, none of the proposed remedies have considered to address the complexity related issue. It has been revealed from an in-depth literature review that the concept of modularity has been applied in many other fields in order to manage complexity and enhance agility/flexibility. The research objective of this study is to explore whether and how the concept of modularity can be applied in the context of IS/IT project outsourcing. Applying a newly developed systematic approach, this study analyzed two cases using the lens of modularity in order to understand and identify the relationship between the concept of modularity and IS/IT project outsourcing.
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