Information Systems Outsourcing Adoption

Dissertação apresentada como requisito parcial para obtenção do grau de Mestre em Estatística e Gestão de Informação

Information systems outsourcing (ISO) is the management of information systems operations performed by an external organization. It has an enormous potential and capability to improve business processes and technological innovations for companies. However, the adoption rates of ISO are still lower than expected. It is therefore desirable to make more efforts to identify determinants of ISO adoption. Based on the combination of a technology-organization-environment (TOE) framework and diffusion of innovation (DOI) theory, we develop a conceptual model to study the determinants of the ISO adoption. Data collected from 261 firms in Portugal were used to test the proposed research model. Based on logistic regression we find five contextual factors (relative advantage, firm size, top management support, perceived benefits, and competitive pressure) to be determinants of ISO adoption. Among them, perceived benefits was found to be the most significant driver, followed by competitive pressure. Overall, these results indicate that the adoption of ISO is affected mainly by the organizational context, compared to the remaining contexts proposed (technology, environment, and individual leader characteristics). These findings are particularly useful for managers, suppliers, and academics, since they provide important insights when focusing mostly on the organizational field.