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An Empirical Study of a Client's Dependence on a Vendor and Switching Costs in IT Outsourcing

  • Journal of Knowledge Information Technology and Systems
  • Abbr : JKITS
  • 2013, 8(2), pp.137-148
  • Publisher : Korea Knowledge Information Technology Society
  • Research Area : Interdisciplinary Studies > Interdisciplinary Research
  • Published : April 30, 2013

Sung Yul Ryoo 1 Minhe Lee 2

1숭실대학교
2한국정보화진흥원

Accredited

ABSTRACT

A strategic decision to discontinue an existing IT outsourcing contract could incur substantial switching costs whenterminating the relationship with an IT service vendor and securing an alternative. The purpose of this research is toinvestigate the impact of a client's dependence on a vendor, uncertainty, and a client's vendor management capability on IToutsourcing switching costs in IT outsourcing context. A total of 210 data collected from field survey were analyzed forthis study. The results indicate that both a client's dependence on a vendor and uncertainty positively influence IToutsourcing switching costs, but a client's vendor management capability negatively influences IT outsourcing switching costs. And the results indicate that a client's vendor management capability has moderating effect on the relationship between aclient's dependence on a vendor and IT outsourcing switching costs.

Citation status

* References for papers published after 2023 are currently being built.

This paper was written with support from the National Research Foundation of Korea.