An Empirical Study of the Applicability of the Technology Acceptance Model to Application Development Outsourcing Decisions

This study empirically tests the applicability of the Technology Acceptance Model (TAM) to application development outsourcing decision making. Advances to TAM posit that perceived usefulness and ease of use mediate the effects of other variables on users’ attitudes towards a technology. The model tested 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. A survey was developed and sent to 3000 IT decision makers. One hundred and sixty respondents provided data to confirm the applicability of TAM and the influences of these external variables. Support for the applicability of TAM was found. Three sub-dimensions of risk, Project Management, Relationship, and Employee Risk were identified. Project Management and Employee Risks along with Prior Relationships were found to significantly influence decision maker perceptions about application development outsourcing.