In the last fifteen years, academic research on information systems (IS) outsourcing has evolved rapidly. Indeed the field of outsourcing research has grown so fast that there has been scant opportunity for the research community to take a collective breath, and complete a global assessment of research activities to date. This paper seeks to address this need by exploring and synthesizing the academic literature on IS outsourcing. It offers a roadmap of the IS outsourcing literature, highlighting what has been done so far, how the work fits together under a common umbrella, and what the future directions might be.In order to adequately address the immense diversity of research on IS outsourcing and outsourcing in general, we develop a conceptual framework that helps us to categorize the literature. In particular, we look at the research objectives, methods used and theoretical foundations of the papers. In identifying the major research objectives, we view outsourcing as an organizational decision process and adapt Simon's stage model of decision making. This allows us to identify five major sourcing issues, from which at least one is covered by each academic article. These are the questions of why to outsource, what to outsource, which decision process to take, how to implement the sourcing decision, and what is the outcome of the sourcing decision. In analyzing the literature, we identify and structure the main explanatory factors and theoretical relationships within each of these sourcing stages. Based on our discussion of the research objectives, theoretical foundations and research approaches taken in the literature, we show how the various research streams hang together and we come up with a number of implications for research. Moreover, we identify a number of emerging sourcing issues. We believe that research on these "new" phenomena such as offshore outsourcing, application service providing and business process outsourcing would benefit from 'standing on the shoulders' of what has already been accomplished in the field of IS outsourcing.

Information systems outsourcing: a survey and analysis of the literature

Preface 1. Clutters 2. T-Cuts and T-Joins 3. Perfect Graphs and Matrices 4. Ideal Matrices 5. Odd Cycles in Graphs 6. 0,+1 Matrices and Integral Polyhedra 7. Signing 0,1 Matrices to Be Totally Unimodular or Balanced 8. Decomposition by k-Sum 9. Decomposition of Balanced Matrices 10. Decomposition of Perfect Graphs Bibliography Index.

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Combinatorial optimization : packing and covering

The focus of this research is to demonstrate how probabilistic models may be used to provide early warnings for bank failures. While prior research in the auditing literature has recognized the applicability of a Bayesian belief revision framework for many audit tasks, empirical evidence has suggested that auditors' cognitive decision processes often violate probability axioms. We believe that some of the well-documented cognitive limitations of a human auditor can be compensated by an automated system. In particular, we demonstrate that a formal belief revision scheme can be incorporated into an automated system to provide reliable probability estimates for early warning of bank failures. The automated system examines financial ratios as predictors of a bank's performance and assesses the posterior probability of a banks financial health (alternatively, financial distress). We examine two different probabilistic models, one that is simpler and makes more assumptions, while the other that is somewhat more complex but makes fewer assumptions. We find that both models are able to make accurate predictions with the help of historical data to estimate the required probabilities. In particular, the more complex model is found to be very well calibrated in its probability estimates. We posit that such a model can serve as a useful decision aid to an auditor's judgment process.

Bayesian Models for Early Warning of Bank Failures

https://www.duo.uio.no/bitstream/handle/10852/10264/revidert2-6-11.pdf?sequence=1

Stochastic Stackelberg equilibria with applications to time dependent newsvendor models

Recent literature on activity based product costing suggests that using product costs to make long-run product and capacity planning decisions is economically sound. This conclusion relies on the assumption that capacity resources impose "soft" constraints (i.e., capacity can be increased in the short-run on an as-needed basis). However, many capacity resources impose "hard" constraints (i.e., capacity once installed cannot be changed in the short run). In this paper, we explore the economic loss from using product cost information for capacity planning when capacity constraints are hard. We also examine two other capacity planning rules that adopt an input resource-based perspective to planning capacity. Using simulation experiments, we show that the solution from a "bottleneck planning" approach dominates the "product cost" based solution and, provides an excellent approximation to the optimal solution to the capacity planning problem.

On the efficiency of cost-based decision rules for

A major design issue facing the designer of a distributed computing system involves the determination of the number of file copies and their locations in the distributed environment. This problem is commonly referred to as the file allocation problem (FAP). This paper considers two FAP models that seek to minimize operating costs (i.e., the total cost of file storage and query/update communication). The first model ensures the attainment of acceptable levels of communication delay during peak network traffic periods (worst-case scenario). The second model considers average communication delay. Unlike previous FAP research, the proposed models treat communication delay on a query-by-query basis, and not as a single, system-wide average delay constraint. For both models, a Lagrangian relaxation-based solution procedure is proposed for the resulting 0/1 integer programming problem. In the case of average delays, we utilize a hybrid model combining analytic and simulation procedures. The results of computatio...

File allocation problem: comparison of models with worst case and average communication delays

The selection of competent contractors is a critical function in all business organizations. In contrast to other types of vendors (e.g., distributors, manufacturers, etc.), contractors are typically accredited before any business transaction takes place. In such situations, there is often a considerable amount of uncertainty associated with the accreditation process. This research presents a probabilistic model for accrediting contractors. We discuss a methodology in which probability measures are used to capture the uncertainty inherent in the decision process. These probabilities are estimated from data on (i) past applicants and (ii) their eventual performance, if accredited. Furthermore, these probabilities are used to determine when additional information about an applicant should be collected, as well as what kind of information would be most relevant for the vendor under consideration.

Contractor Accreditation: A Probabilistic Model

Over the past few decades, telecommunication networks have been designed and implemented to support a wide variety of services, including the integration of a customer's voice, data and video communication requirements. Rapid advances in VLSI technology, coupled with declining costs of fiber-based transmission systems, have resulted in high speed, broadband digital networks capable of transporting hundreds of megabits per second. At the same time, a growing number of business customers have expressed the need for controlling and re-configuring their private networks themselves, to better match their business needs. In digital networks, a key component in allowing this flexibility is the establishment of intelligent Digital Cross-Connect Systems (DCS). With DCS, network re-configuration, including bandwidth allocation and topology changes, can be made on a near real time basis, or be scheduled on a reservation basis to take place once (or multiple times) in the future. In this paper, we study the application of digital cross-connect systems in packet switched networks. These systems allow the designer to configure express pipes or direct links between source--destination pairs that have high communication traffic requirements. Since express pipes are configured by borrowing channels from the underlying, leased, backbone network, establishing a direct link reduces the number of "free" channels available for regular switched traffic, and consequently have the potential of increasing queueing delays. We formulate the problem of judiciously selecting express pipes as a 0/1 nonlinear integer programming problem, that seeks to minimize overall network delay. An efficient Lagrangian relaxation based solution procedure is proposed. Results of computational experiments with the proposed solution technique are also reported.

Configuring express pipes in emerging telecommunication networks

Videotex refers to computer-based interactive systems that are capable of electronically delivering screen text, numbers and graphics via telephone or two-way cable for display on television sets or video monitors. This technology allows computer-naive users to easily access general interest or highly specialized information stored in on-line databases in the amount and sequence (s)he desires. Over the past decade, there has been considerable interest in videotex systems, and a number of them have already been implemented in different countries. With the proposed implementation of Integrated Services Digital Networks, the interest in videotex systems is expected to grow even further. This paper provides a brief overview of commercial videotex systems in various countries, and discusses possible organizational usage of these systems. In addition, we formulate a 0/1 integer programming model for allocating videotex files in a geographically distributed videotex system. A Lagrangian relaxation based solution procedure is developed for solving the videotex file allocation problem. Results of extensive numerical experiments performed using the proposed heuristic solution procedure are reported.

Configuring Geographically Distributed Videotex Databases: Model and Solution Procedure

Rapid advances in computing and communications technology have made distributed computing an attractive alternative for geographically dispersed organizations. A telecommunication sub-network forms the backbone of these distributed systems. In general, this paper focuses on the assignment of communication channel capacities in the presence of time variant usage patterns. Specifically, we concentrate on long-range capacity planning for organizations that construct networks by leasing communication channels from telecommunication companies. We formulate the capacity assignment problem as a 0-1 integer program that seeks to minimize total leasing cost subject to communication delay restrictions. Unlike previous models that include a single-system wide-average delay constraint, our model allows the flexibility of specifying delay restrictions by communicating node pairs. We propose an efficient heuristic, and a Lagrangian relaxation based procedure to obtain performance guarantees on the solution obtained from the heuristic.

A Heuristic Procedure for Leasing Channels in Telecommunications Networks

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