APJIS Asia Pacific Journal of Information Systems

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The Journal for Information Professionals

Asia Pacific Journal of Information Systems (APJIS), a Scopus and ABDC indexed journal, is a
flagship journal of the information systems (IS) field in the Asia Pacific region.

ISSN 2288-5404 (Print) / ISSN 2288-6818 (Online)

Editor : Seung Hyun Kim

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Past Issue

Date June 2013
Vol. No. Vol. 23 No. 2
DOI
Page 21~39
Title The Impact of Service Level Management(SLM) Process Maturity on Information Systems Success in Total Outsourcing:An Analytical Case Study
Author Geun Su Cho, Joon Mo An, Hyoung Jin Min
Keyword IS Management, IT Outsourcing, IT Service, Service Level Management, Process Maturity, Analytical Case Study
Abstract As the utilization of information technology and the turbulence of technological change increase in organizations, the adoption of IT outsourcing also grows to manage IT resource more effectively and efficiently. In this new way of IT management technique, service level management(SLM) process becomes critical to derive success the outsourcing in the view of end users in organization. Even though much of the research on service level management or agreement have been done during last decades, the performance of the service level management process have not been evaluated in terms of final objectives of the management efforts or success the view of end-users. This study explores the relationship between SLM maturity and IT outsourcing success the users point of view by a analytical case study in four client organizations under an IT outsourcing vendor, which is a member company of a major Korean conglomerate. For setting up a model for the analysis, previous researches on service level management process maturity and information systems success are reviewed. In particular, information systems success users point of view are reviewed based the DeLone and McLeans study, which is argued and accepted as a comprehensively tested model of information systems success currently. The model proposed in this study argues that SLM process maturity influences information systems success, which is evaluated in terms of information quality, systems quality, service quality, and net effect proposed by DeLone and McLean. SLM process maturity can be measured in planning process, implementation process and operation and evaluation process. Instruments for measuring the factors in the proposed constructs of information systems success and SL management process maturity were collected previous researches and evaluated for securing reliability and validity, utilizing appropriate statistical methods and pilot tests before exploring the case study. Four cases four different companies under one vendor company were utilized for the analysis . All of the cases had been contracted in SLA(Service Level Agreement) and had implemented ITIL(IT Infrastructure Library), Six Sigma and BSC(Balanced Scored Card) methods since last several years, which means that all the client organizations pursued concerted efforts to acquire quality services IT outsourcing the organization and users point of view. For comparing the differences among the four organizations in IT outsourcing sucess, T-test and non-parametric analysis have been applied on the data set collected the organization using survey instruments. The process maturities of planning and implementation phases of SLM are found not to influence on any dimensions of information systems success users point of view. It was found that the SLM maturity in the phase of operations and evaluation could influence systems quality only users view. This result seems to be quite against the arguments in IT outsourcing practices in the fields, which emphasize usually the importance of planning and implementation processes upfront in IT outsourcing projects. According to after-the-fact observation by an expert in an organization participating in the study, their needs and motivations for outsourcing contracts had been quite familiar already to the vendors as long-term partners under a same conglomerate, so that the maturity in the phases of planning and implementation seems not to be differentiating factors for the success of IT outsourcing. This study will be the foundation for the future research in the area of IT outsourcing management and success, in particular in the service level management. And also, it could guide managers in practice in IT outsourcing management to focus on service level management process in operation and evaluation stage especially for long-term outsourcing contracts under very unique context like Korean IT outsourcing projects. This study has some limitations in generalization because the sample size is small and the context itself is confined in an unique environment. For future exploration, survey based research could be designed and implemented.


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