Principal agent theory in the examination of technical specifications used in government information technology procurement

• Main Authors: Valencia, Peter Laurence V., Azcarraga, Arnulfo P.
• Format: text
• Published: Animo Repository 2018
• Subjects: Government purchasing > Philippines; Information technology projects > Philippines; Computers—Specifications > Philippines; Computer software—Specifications > Philippines; Computer service industry > Philippines; Computer Sciences
• Online Access: https://animorepository.dlsu.edu.ph/faculty_research/3555
• Institution: De La Salle University

IT project requirements from non-technical users are captured and translated into technical specifications by the internal Information Technology department for IT goods and services acquisition. An aligned technical specification from users and other stakeholders is a critical success factor of large IT project implementations as they represent the blueprints of an IT project. in a qualitative study different Philippine government offices involved in some large IT procurement of goods and services, principal agent theory reveals that some gaps are created due to the adverse selection caused by moral hazards and hidden characteristics during pre-procurement, selection and evaluation and, implementation of an IT project. The study finds opportunism from vendors, IT personnel and political figures for long term profit and personal gain, and these negatively influence the quality and accuracy technical specification; thus resulting in major failures and huge losses. © PACIS 2018.