Developing the Change Management Model in Outsourcing of IT Services: Using Interpretive -Structural Modeling (ISM)

Abstract

Outsourcing, a key strategy for Information Technology sourcing due to cost reduction, concentration on core competencies and acquisition of the latest and the most up to date technologies, has been seriously taken into consideration by organizations in the last two decades. Information Technology outsourcing is a key decision in that field which can lead to successful investment management in this area. Despite the popularity and attention to this outsourcing strategy, statistics indicate an increasing failure rate in Information Technology outsourcing projects rooted in the changes occurred due to adapting with this strategy. Moreover, mismanagement of these changes can be considered as a cause for many of these failures which not only led to the failure of outsourcing process but also bring about additional risks and costs. The aim of this paper is to identify and prioritize change management requirements in supplying resources based on Information Technology services outsourcing process. Therefore, following a systematic literature review in preview of Information Technology outsource and change management researches, 12 semi-structured interviews were conducted by experts in the field of outsource and organizational change management. Finally, factors affecting change management success in Information Technology outsourcing were prioritized using Interpretive-Structural Modeling. The present study has contributions both to the developed model and the research methodology in outsource researches domain.

Keywords

• Interpretive Structural Modeling (ISM)
• IT outsourcing
• IT sourcing
• Organizational change management
• Outsourcing