Content area
Abstract
From a study of 55 major US companies whose level of total information technology (IT) expenditures were available, a research model on the determinants of IT outsourcing by firms was developed. Empirical data provided general support to the following hypotheses related to these determinants: 1. The firm's business cost structure will be positively related to the degree of IT outsourcing. 2. The firm's business performance will be negatively related to the degree of IT outsourcing. 3. The firm's financial leverage will be positively related to the degree of IT outsourcing. 4. The firm's IT cost structure will be positively related to the degree of IT outsourcing. 5. The firm's IT performance will be negatively related to the degree of IT outsourcing.