Digitalization and Evolving IT Sourcing Strategies in the German Automotive Industry

Felser, Kerstin and Wynn, Martin G ORCID: 0000-0001-7619-6079 (2020) Digitalization and Evolving IT Sourcing Strategies in the German Automotive Industry. International Journal on Advances in Intelligent Systems, 13 (3/4). (In Press)

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Abstract

Digitalization and major changes in core business products and processes are now sweeping through the global automotive industry, and many automotive companies are confronted with the challenge of formulating and implementing a company-wide digital transformation strategy. Digitalization is associated with significant and extremely rapid change, and, in some cases, even the replacement of established business models. This transformation is part of what is often termed Industry 4.0 and, in large companies, where the provision of information technology (IT) has hitherto been outsourced, the introduction of these new technologies may be the catalyst for a major re-think of IT sourcing strategy. This may entail bringing previously outsourced activities back in-house – a process known as backsourcing - to regain ownership and control, in order to be more flexible and respond more effectively to rapidly changing demands. This study reviews the extant literature on the motivation for backsourcing, and then examines the potential impact of digitalization on IT sourcing in the German automotive industry. A conceptual framework for subsequent research is put forward, using a knowledge-based view of the firm. In addition, following preliminary feedback from interviewees, an initial model for analyzing change in IT sourcing strategy is proposed. The model is being developed through more in-depth interviews to provide operational guidance for IT management and strategists in the German automotive industry.

Item Type: Article
Article Type: Article
Uncontrolled Keywords: IT Sourcing Strategy; Backsourcing; Digitalization; Digital Transformation; German Automotive Industry; Conceptual Framework; Operational Model
Subjects: Q Science > QA Mathematics > QA76 Computer software
T Technology > T Technology (General)
Divisions: Schools and Research Institutes > School of Computing and Engineering > Technical & Applied Computing
Research Priority Areas: Applied Business & Technology
Depositing User: Martin Wynn
Date Deposited: 03 Sep 2020 15:12
Last Modified: 03 Sep 2020 15:15
URI: http://eprints.glos.ac.uk/id/eprint/8670

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