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Deciding on sourcing option for hosting of software applications in organisations

Johansson, Björn LU (2007) In Linköping Studies in Art and Science No. 396
Abstract
Software applications are of great importance in organisations, and performance of an organisation depends on how hosting of software applications are organised. This thesis deals with the question: Why and how organisations decide on specific sourcing options for software applications hosting. The thesis describes and explains sourcing decision-making processes made in the Swedish Post (MeLo) and Jönköpings Kommun (the municipality). MeLo’s sourcing decision resulted in outsourcing of hosting, and the municipality’s sourcing decision resulted in internal sourcing of hosting. Both organisations were distinguished by a decentralised structure to a great extent and showed a huge diversity in software applications used. The sourcing decisions... (More)
Software applications are of great importance in organisations, and performance of an organisation depends on how hosting of software applications are organised. This thesis deals with the question: Why and how organisations decide on specific sourcing options for software applications hosting. The thesis describes and explains sourcing decision-making processes made in the Swedish Post (MeLo) and Jönköpings Kommun (the municipality). MeLo’s sourcing decision resulted in outsourcing of hosting, and the municipality’s sourcing decision resulted in internal sourcing of hosting. Both organisations were distinguished by a decentralised structure to a great extent and showed a huge diversity in software applications used. The sourcing decisions resulted in a change to a more centralised hosting of software applications. The thesis is a retrospective case study based on semi-structured interviews and documents analysis. Concepts from the resource-based view and factors described in sourcing literature are used to analyse these sourcing decisions. From nine theoretical initial propositions 28 propositions are developed about why and how sourcing decisions are made. From these propositions, relations are described

and some conclusions are presented about why and how sourcing decisions are

made. The main conclusion is that maturity level regarding software applications usage seems to influences the start, the process as such, and the outcome of a sourcing decision-making process. This is explained as the more mature the organisation is regarding usage of software applications the more proactive decision-makers are in the sourcing decision. It is also identified that involved factors can be either influencing or justifying, and it is found that control of software applications usage influences the start of a sourcing decision to a high extent. The findings suggest that a sourcing decision-making process can be described as an irrational decision process that aims at increasing commitment on an already made decision. The study suggests that the less mature and more decentralised the organisation is the more reactive and the stronger influence the need to increase control over software applications have in a sourcing decision-making process. (Less)
Please use this url to cite or link to this publication:
author
opponent
  • Nilsson, Anders G, Karlstad University
publishing date
type
Thesis
publication status
published
subject
in
Linköping Studies in Art and Science No. 396
pages
301 pages
publisher
Liu-tryck 2007
defense location
Linköpings University
defense date
2007-10-03 13:00
ISSN
1403-6231
language
English
LU publication?
no
id
3c07e7f9-6aa4-4d79-bac5-92ff9080ed4d (old id 1479515)
date added to LUP
2009-12-11 14:44:38
date last changed
2016-09-19 08:44:55
@phdthesis{3c07e7f9-6aa4-4d79-bac5-92ff9080ed4d,
  abstract     = {Software applications are of great importance in organisations, and performance of an organisation depends on how hosting of software applications are organised. This thesis deals with the question: Why and how organisations decide on specific sourcing options for software applications hosting. The thesis describes and explains sourcing decision-making processes made in the Swedish Post (MeLo) and Jönköpings Kommun (the municipality). MeLo’s sourcing decision resulted in outsourcing of hosting, and the municipality’s sourcing decision resulted in internal sourcing of hosting. Both organisations were distinguished by a decentralised structure to a great extent and showed a huge diversity in software applications used. The sourcing decisions resulted in a change to a more centralised hosting of software applications. The thesis is a retrospective case study based on semi-structured interviews and documents analysis. Concepts from the resource-based view and factors described in sourcing literature are used to analyse these sourcing decisions. From nine theoretical initial propositions 28 propositions are developed about why and how sourcing decisions are made. From these propositions, relations are described<br/><br>
and some conclusions are presented about why and how sourcing decisions are<br/><br>
made. The main conclusion is that maturity level regarding software applications usage seems to influences the start, the process as such, and the outcome of a sourcing decision-making process. This is explained as the more mature the organisation is regarding usage of software applications the more proactive decision-makers are in the sourcing decision. It is also identified that involved factors can be either influencing or justifying, and it is found that control of software applications usage influences the start of a sourcing decision to a high extent. The findings suggest that a sourcing decision-making process can be described as an irrational decision process that aims at increasing commitment on an already made decision. The study suggests that the less mature and more decentralised the organisation is the more reactive and the stronger influence the need to increase control over software applications have in a sourcing decision-making process.},
  author       = {Johansson, Björn},
  issn         = {1403-6231},
  language     = {eng},
  pages        = {301},
  publisher    = {Liu-tryck 2007},
  series       = {Linköping Studies in Art and Science No. 396},
  title        = {Deciding on sourcing option for hosting of software applications in organisations},
  year         = {2007},
}