Citation:Costello, G. J., Coughlan, C., Donnellan, B. and Gadatsch, A. (2009) Proposing a formalised model for mindful information systems offshoring. In Information Systems Development: Towards a Service Provision Society, (Papadopoulos, G. A. and Wojtkowski, W. and Wojtkowski, W. G. and Wrycza, S. and Zupancic, J., Eds), pp 481-489, Springer-Verlag, New York.
Abstract:
The central thesis of this paper is that Mathematical Economics can
provide a novel approach to the examination of offshoring business decisions and
provide an impetus for future research in the area. A growing body of research indicates
that projected cost savings from IT offshoring projects are not being met.
Furthermore, evidence suggests that decision-making processes have been more
emotional than rational, and that many offshoring arrangements have been rushed
into without adequate analysis of the true costs involved. Building on the concept
of mindfulness and mindlessness introduced to the IS literature by Swanson and
Ramiller, a cost equation is developed using ¿deductive reasoning rather than
inductive study¿ in the tradition of mathematical economics. The model endeavours
to capture a wide range of both the quantitative and qualitative parameters.
Although the economic model is illustrated against the background of a European
scenario, the theoretical framework is generic and applicable to organisations in
any global location.
