Measuring the business value of IT outsourcing: a systems approach

Abstract

Purpose – The purpose of this study is to examine information technology (IT) outsourcing measurement systems. This paper proposes a systemic framework which can be used to support the evaluation of existing and the development of new measurement systems in the outsourcing context. The framework is built on the multidimensional characteristics of the business value created by IT outsourcing (ITO). Design/methodology/approach – After the conceptual discussion, this paper develops a systemic procedure for evaluating and developing measurement systems. The proposed procedure is applied in a multinational corporation operating in the electronics industry and conducting global business. First, the characteristics of the previous measurement system are evaluated, then the systemic properties of the current system are assessed and, finally, a new measurement system is proposed. Findings – The findings reveal that the measurement systems differ on many levels, namely, input, measurement process and output. The fr...