Driving digital transformation: a qualitative single case study of outsourcing and insourcing in a commercial contract management department
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2023
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Becker, João Luiz
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Digital Transformation (DT) has emerged as a transformative phenomenon, driven by the rapid advancement and widespread adoption of digital technologies. The purpose of this research is to investigate how outsourcing and insourcing of the legal department as a mechanism to drive DT. These perspectives shed light on the processes and their impact on the organization's DT process over the past five years, complemented by an examination of internal documents and knowledge to gain a comprehensive understanding of the company's decision-making processes. Through an exploration of employees' and first-level managers' viewpoints by insights from semi-structured interviews conducted in a qualitative approach, this article endeavors to discern the perception of these processes and their effects on the company's DT process during the specified timeframe. The study reveals that outsourcing and insourcing, particularly in the context of Contract Management within the Legal Department, present challenges in terms of alignment with organizational processes and connections. However, it also uncovers notable benefits from the insourcing process, enabling the department to attain greater control and expedite decision-making. The main importance of this study relates to the outsourcing and insourcing process as a mechanism for implementing and accelerating the DT process and its findings illustrate that these approaches can serve as effective options to accelerate or initiate DT efforts, particularly when internal teams are unable to manage the process entirely, provided clear and well-defined objectives are in place. As such, this study holds valuable implications for scholars and practitioners grappling with analogous scenarios and seeking to understand their unique dynamics.