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Information systems outsourcing projects as a double moral hazard problem

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  • Elitzur, Ramy
  • Gavious, Arieh
  • Wensley, Anthony K.P.

Abstract

In the past two decades many organizations have turned to other organizations to satisfy their information systems needs. Information systems outsourcing arrangements cover the spectrum from agreements involving the delivery of all information services to those providing specific services such as systems development, communications management, desktop computing provision and maintenance, and so on.

Suggested Citation

  • Elitzur, Ramy & Gavious, Arieh & Wensley, Anthony K.P., 2012. "Information systems outsourcing projects as a double moral hazard problem," Omega, Elsevier, vol. 40(3), pages 379-389.
  • Handle: RePEc:eee:jomega:v:40:y:2012:i:3:p:379-389 DOI: 10.1016/j.omega.2011.06.005
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    References listed on IDEAS

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    1. Eric T. G. Wang & Terry Barron & Abraham Seidmann, 1997. "Contracting Structures for Custom Software Development: The Impacts of Informational Rents and Uncertainty on Internal Development and Outsourcing," Management Science, INFORMS, vol. 43(12), pages 1726-1744, December.
    2. Sugato Bhattacharyya & Francine Lafontaine, 1995. "Double-Sided Moral Hazard and the Nature of Share Contracts," RAND Journal of Economics, The RAND Corporation, vol. 26(4), pages 761-781, Winter.
    3. Russell Cooper & Thomas W. Ross, 1985. "Product Warranties and Double Moral Hazard," RAND Journal of Economics, The RAND Corporation, vol. 16(1), pages 103-113, Spring.
    4. Seungjin Whang, 1992. "Contracting for Software Development," Management Science, INFORMS, vol. 38(3), pages 307-324, March.
    5. Gavious, Arieh & Rabinowitz, Gad, 2003. "Optimal knowledge outsourcing model," Omega, Elsevier, vol. 31(6), pages 451-457, December.
    6. Jiang, Bin & Reinhardt, Gilles & Young, Scott T., 2008. "BOCOG's outsourcing contracts: The vendor's perspective," Omega, Elsevier, vol. 36(6), pages 941-949, December.
    7. Kim, Son Ku & Wang, Susheng, 1998. "Linear Contracts and the Double Moral-Hazard," Journal of Economic Theory, Elsevier, vol. 82(2), pages 342-378, October.
    8. Bahli, Bouchaib & Rivard, Suzanne, 2005. "Validating measures of information technology outsourcing risk factors," Omega, Elsevier, vol. 33(2), pages 175-187, April.
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    Cited by:

    1. Balachandran, Kashi R. & Wang, Hsiao-Wen & Li, Shu-Hsing & Wang, Taychang, 2013. "In-house capability and supply chain decisions," Omega, Elsevier, vol. 41(2), pages 473-484.
    2. repec:spr:infosf:v:10:y:2008:i:2:d:10.1007_s10796-008-9066-7 is not listed on IDEAS

    More about this item

    Keywords

    Outsourcing; Information system; Game theory;

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