Identify and Summarize the Hypothesis

Abstract

Over the last several years, information technology outsourcing has become widespread. Research shows that organizations that outsource can give an organization a competitive advantage, develop technology proficiency, and minimize daily operation costs. Various research studies have been conducted to look into circumstances that either prevent or support information technology outsourcing. The subject of this summary will identify and summarize the hypothesis described in the article. The summary will clarify to see if the hypothesis was rejected or supported, and what the implications of the findings are for the study.

Identify and Summarize the Hypothesis

According to Qu, Pinsonneault, and Oh (2011), research shows that business information technology (IT) importance can have a neutral, positive, or negative result on outsourcing. It is necessary to conduct additional research to develop a better understanding in this area. The reason for the examination of this article is to establish new thought to the industry circumstances based on munificence. "Industry munificence refers to the availability in an industry" (Qu, Pinsonneault, and Oh, 2011, p 109, para 1). Any time there are considerable amounts of resources, a company can survive quite easy.

A munificent industry has more growth opportunities then in non-munificent industry. It can demand an enormous amount of time to create an adequate information technology foundation. Companies in a munificent industry could be unwilling to wait for their own information technology infrastructure to develop so the company may acquire their IT support services from outside vendors. When companies grow quickly in munificent industries, the company is likely to obtain IT infrastructure services from the market to speed up the company's increase. For example, Amazon.com made significant investments in its distribution and IT infrastructures in anticipation of future growth. Seeing that industry munificence maintain the progression and entering of new team players in the business, the hypothesis for this study is industry munificence will certainly show a relationship with the exercise of information technology outsourcing.

Explanation of Hypothesis Being Supported and Implications of Study

The connection between IT outsourcing and industry munificence have been reinforced by previous findings. The findings indicate that progress is likely to grow in munificent industries, and the creation of an internal IT will be time-consuming to sustain the common expansion in munificent industries. This article discloses that industry qualities have substantial consequences for companies. For example, outsourcing can generate