Machine learning approaches to understand IT outsourcing portfolios

By Yingda Lu, Anjana Susarla, Kiron Ravindran, Deepa Mani
Electronic Commerce Research | January 2023

Citation

Lu, Yingda., Susarla, Anjana., Ravindran, Kiron., Mani, Deepa. Machine learning approaches to understand IT outsourcing portfolios Electronic Commerce Research .

Electronic Commerce Research, 2023

Abstract

The outsourcing of IT services poses a conundrum to the traditional theories of the firm. While there are many prescriptive sourcing metrics that are geared towards the evaluation of tangible and measurable aspects of vendors and clients, much of the information that is traditionally important in making such decisions is unstructured. To address this challenge, we train and apply our own NLP model based on deep learning methods using doc2vec, which allows users to create semi-supervised methods for representation of words. We find two novel constructs, vendor–client alignment and vendor–task alignment, that shape partner selection and the alternatives faced by clients in IT outsourcing, as opposed to agency or transaction cost considerations alone. Our method suggests that NLP and machine learning approaches provide additional insight, over and above traditionally understood variables in academic literature and trade and industry press, about the difficult-to-elicit aspects of vendor–client interaction.

Professor Deepa Mani is Professor of Information Systems and the Deputy Dean of Academic Programmes & Digital Learning at the Indian School of Business. Deepa’s research interests are at the intersection of technology, organisation, and society. She has demonstrated significant thought leadership on the business and policy implications of technological innovations and investments. Her research articles have been published in leading academic journals and extensively featured in refereed conference proceedings, edited book chapters, and popular media outlets. Deepa serves as a Senior Editor at Information Systems Research. Deepa’s research has also had widespread impact on business practice and policy. In recognition of her impact, she was awarded the prestigious INFORMS Information Systems Society (ISS) Practical Impacts Award in 2022.

Deepa has been appointed to serve on several expert committees of the Central and State governments to provide guidance on policies for the digital economy, digital interventions in key sectors, and catalyse grassroot impacts using technology. She also extensively coaches organizations, keynotes corporate leadership events, and conducts executive education in the areas of digital business models, digital transformation and technology product management.

Deepa completed her undergraduate education at St. Stephen’s College, Delhi University, Masters in Information Systems from Carnegie Mellon University, Pennsylvania, and her doctorate in Information Systems from the University of Texas, Austin.

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Deepa Mani