The impact of IT outsourcing on information systems success

The objective of this research is to assess the impact of IT outsourcing on Information Systems’ success. We modeled the relationships among the extent of IT outsourcing, the ZOT (the Zone of Tolerance), and IS success. We justified our model using the expectancy–disconfirmation theory, the agency theory, and transaction cost economics, and we empirically tested it using structural equation modeling with responses from IS users. We found significant direct and indirect effects (through the service quality) of outsourcing on IS systems’ perceived usefulness and their users’ satisfaction. Whereas the extent of outsourcing is negatively related to the service quality and perceived usefulness, the ZOT-based IS service quality is positively related to the user satisfaction.