The Application Development Outsourcing Decision: An Application of the Technology Acceptance Model

Abstract

The outsourcing industry has grown rapidly. This study synthesizes factors from prior outsourcing research and the Technology Acceptance Model (TAM) with information gathered from structured interviews of nine IT executives from seven companies to propose a model of outsourcing acceptance.

TAM suggested that perceived usefulness and ease of use mediate the effects of other variables on users' attitudes toward technology. The model in this study suggests that perceived usefulness and ease of use of outsourcing mediate the effects of the external environment, prior outsourcing relationships and risks on outsourcing decision-makers.