IS outsourcing practices in the USA, Japan and Finland: a comparative study

With increasing cost-reduction pressures, outsourcing of information systems (IS) functions has emerged as an important option for managers in companies around the world. In this paper we present the results of our exploratory, empirical research comparing practices of domestic and global IS outsourcing in the USA, Japan and Finland. The research methodology of a mail survey with similar questionnaires was used in all three countries. The paper provides new empirical evidence comparing these countries on the types of functions being commonly outsourced, the extent to which these functions are outsourced, views of Chief Information Officers (CIOs) on the desired cost savings and the comparative ratings of the advantages and disadvantages of IS outsourcing. Also compared are the roles played by different executives in making outsourcing decisions. The implications of these results for IS managers and directions for future research are presented in the conclusions.