IS/IT Backsourcing decision making - A design science research approach

Abstract

Many organizations implement outsourcing solutions for information systems and/or information technology (IS/IT). Some of them face problems resulting from dissatisfaction with these outsourcing decisions. Reasons for dissatisfaction include an outsourcing agreement that did not meet expectations, organizational changes, and a loss of control over the business. As a result, companies are rethinking their existing contracts by adopting a backsourcing solution. IS/IT backsourcing refers to the full or partial repatriation of previously outsourced activities. Given the strategic stakes of backsourcing, it is imperative to develop a decision-making process based on a solid framework. Based on an extensive literature review, we propose a design science research (DSR) approach consisting of four artifacts: a set of requirements, a conceptual framework, a decision model, and a prototype to support decision makers considering IS/IT backsourcing issues. A validation is presented, consisting of an illustrative scenario, a logical argument, and an expert evaluation. In addition, the approach was compared with recommendations found in the literature. Finally, the comments of a panel of IS/IT experts were collected. Our decision support system can be used by decision makers to investigate the backsourcing of IS/IT activities, choosing between three scenarios: backsource, renegotiate the contract, or change vendor.