Abstract:

This paper studies the determinants influencing the outsourcing of information systems (IS) by Taiwanese corporations. This study adopts a multi-approach consideration of these determinants. Economic argument for IS outsourcing is definitely not enough. There is also a need to examine IS outsourcing within the context of corporation’s strategic consideration and influence of external environment. By combining the various approaches in a single study, we can better understand their impact on Taiwanese corporate behaviour towards IS outsourcing. Through survey and interviews, this study shows that IS outsourcing by Taiwanese corporations is influenced by transaction cost-related determinant, strategic consideration, industry’s norms and the desire to imitate successful experience of their counterparts. The results are a reflection of Taiwan’s open economy, competitiveness nature of Taiwanese industry and their high sensitivity to cost as well as the tight integration of Taiwanese corporation to global development and trends.