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Blaskovich, Jennifer, and Natalia Mintchik. "Information Technology Outsourcing: A Taxonomy of Prior Studies and Directions for Future Research." Journal of Information Systems 25, no. 1 (March 1, 2011): 1–36. http://dx.doi.org/10.2308/jis.2011.25.1.1.
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ABSTRACT: This paper reviews the nearly 20 years of scholarly research on information technology outsourcing (ITO), with an explicit focus on developing a taxonomy for AIS academics and extracting valuable suggestions for AIS practitioners. Our taxonomy subdivides the ITO research into separate streams: (1) initial outsourcing decision and its determinants, (2) execution of the outsourcing contract and dynamics of outsourcing relationships, and (3) measurement of outsourcing results and the long-term organizational consequences of outsourcing. We consider the primary research questions addressed, summarize the major findings, and identify the theories and methods used. Finally, we highlight the limited accounting studies on ITO and discuss directions for potential synergies between accounting and IS scholars.
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Słoniec, Jolanta, Anna Kaczorowska, and Sabina Motyka. "GENERATIONS OF THE DEVELOPMENT OF IT OUTSOURCING IN POLAND." Acta Scientiarum Polonorum. Oeconomia 17, no. 4 (December 30, 2018): 141–50. http://dx.doi.org/10.22630/aspe.2018.17.4.61.
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The paper presents a study on the development of IT outsourcing (ITO) in large organizations in Poland. Based on the generations of outsourcing development presented in the literature, an attempt was made to develop the generation of IT outsourcing. Three generations of ITO development have been identified. The main research assumption was formulated as follows: The development of the ITO industry is carried out in accordance with the generation order of ITO development. Three detailed assumptions were also formulated. Each of them was referred to activities and functions included in individual generations. In order to address the assumptions, questionnaire surveys of ITO companies were carried out. Our own studies and analyses made it possible to confirm the adopted main and detailed assumptions. Confirmation of the ITO development in line with the ITO generations testifies to the harmonious development of the industry. Possible directions for further research concern new forms of ITO services related to the third generation of the ITO field development.
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Mazza, Tatiana, and Stefano Azzali. "Determinants of Information Technology Outsourcing." Annals of the Alexandru Ioan Cuza University - Economics 61, no. 1 (July 1, 2014): 66–80. http://dx.doi.org/10.2478/aicue-2014-0008.
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Abstract Financial reporting is a key outputs of Information Technology (IT). Thus to assure the reliability of financial reporting, the IT audit has to be evaluated. The evaluation of IT Audit is necessary also when the IT is outsourced. This paper aims to identify the determinants of the Information Technology Outsourcing (ITO) decision in Italy and to test empirically the ITO framework developed theoretically by Lacity et al. (2011), using the variable construction based on Lacity et al. (2010). We use a questionnaire addressed to Italian companies which are today obliged to comply with Law 262/2005. The aim is to test the reliability of financial reporting through the evaluation of internal control, such as IT audit. We control for the non-response bias. We build a panel data for our regression model. We find that client firm characteristics, Task Complexity and ITO outcomes are significant for Italian listed companies in the ITO decision. The findings are original in that they concern a country which has specific characteristics and where very little empirical research exists on the topic.
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McGowan Poole, Cynthia Denise. "IT outsourcing, knowledge transfer and project transition phases." VINE Journal of Information and Knowledge Management Systems 50, no. 2 (November 11, 2019): 219–46. http://dx.doi.org/10.1108/vjikms-04-2019-0053.
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Purpose The purpose of this research was to uncover perceptions of information technology outsourcing (ITO) project leaders and project teams regarding knowledge transfer between client and vendor partners during opening and closing transition phases of ITO projects. Design/methodology/approach Qualitative methods and exploratory case study design were used. Purposeful sampling was used to identify ITO knowledge assets including project team members and organizational documents and artifacts that may provide information regarding the knowledge transfer processes during the transition phases of the ITO project. Sample criteria were ITO project team members from one US-based client organization and the company’s international vendor partners. The study population included project managers, analyst, developers, subject matter experts (SMEs) and other ITO knowledge workers involved in the ITO project from one US-based organization. Interview and document analysis were done using of NVivo Pro 11® research software. Findings Four themes emerged from participant responses relative to the opening and closing phases of ITO projects including KT approaches to plans and processes; KT dependencies relative to IT project team member’s reliance on project tools, processes and artifacts; determinants of KT success or failure relative to project team members’ perceptions; and role of documentation relative to communication and distribution of KT outcomes. Originality/value This research may provide insights into additional aspects of knowledge transfer during ITO transition phases, which may be used by IT leaders and project teams to plan for successful knowledge transfer during the transition phases of ITO projects.
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Hanafizadeh, Payam, and Ahad Zare Ravasan. "An empirical analysis on outsourcing decision: the case of e-banking services." Journal of Enterprise Information Management 31, no. 1 (February 12, 2018): 146–72. http://dx.doi.org/10.1108/jeim-11-2016-0182.
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Purpose A multitude of factors influence the information technology outsourcing (ITO) decision. Organizations must systematically evaluate these factors prior to making the ITO decision. The purpose of this paper is to provide an in-depth analysis toward understanding the critical factors in affecting ITO decision in the context of e-banking services. Design/methodology/approach The effect of technological, organizational, and environmental attributes on e-banking services outsourcing decision were investigated in this paper. The study was carried out using the quantitative research methodology based on a survey of 23 banks. The partial least squares technique was utilized as the method of data analysis. Findings The results of the data analysis illustrated that nine out of 11 assumed factors (i.e. perceived complexity, perceived cost, service observability to the client, cultural fit between client and supplier, perceived loss of organizational knowledge, prior outsourcing experience, external pressure, market volatility, and suppliers’ power) influence the outsourcing decision of e-banking services. The findings also confirmed that the nature of the service and client IT capabilities did not exert any influence on the outsourcing decision. Originality/value The study is among the first kind of ITO decision research which empirically investigates the effect of service observability, cultural fit, perceived loss of organizational knowledge, external pressure, market volatility, and suppliers’ power amongst other factors on the ITO decision. The findings from this study provide insights for the banks and service providers to better understand the factors affecting the outsourcing decisions of e-banking services in contexts of less developed countries. Implications based on a specific situation of the Iranian banking sector is also proposed.
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Felisoni, Paulo Ribeiro, Fellipe Silva Martins, and Marcos Antonio Gaspar. "Evaluation of the main performance criteria of IT outsourcing for contract management in public companies: a bibliometric review." Research, Society and Development 9, no. 11 (December 4, 2020): e81491110390. http://dx.doi.org/10.33448/rsd-v9i11.10390.
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Although Information Technology Outsourcing (ITO) is common in private companies, it is less common in public organizations. In addition, extant literature focuses mainly on private companies and researchers from public organizations use and replicate these results often without adequate validation for the public context. This points to a scenario in which ITO studies may have worse results due to the lack of an appropriate theoretical framework. To analyze this disparity, the existing literature on IT, public organizations and outsourcing is reviewed. A systematic review of the literature allows to extract the content organized by groups. Thus, a framework is proposed to understand the main dimensions of monitoring IT outsourcing for public organizations. The results point to four main criteria (monitoring, relationship, performance and uncertainty) divided into 16 sub-criteria. This study contributes to the literature by refining the IT outsourcing theories for the public sector and providing a platform for advances in future studies.
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Lin, Tingting, and Riitta Hekkala. "Governance structure in IT outsourcing: a network perspective." Strategic Outsourcing: An International Journal 9, no. 1 (February 15, 2016): 38–59. http://dx.doi.org/10.1108/so-03-2015-0011.
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Purpose – The governance of information technology outsourcing (ITO) has been identified as an essential determinant for ITO success. Prior studies have shed light on effective governance structures in different organizational contexts. This study aims to advance this prior knowledge by exploring how interpersonal networks, as an important aspect of such context, reflect and influence ITO governance. Design/methodology/approach – A single case study was conducted from a vendor’s perspective in an ITO dyad. Social network analysis was leveraged to reveal the interpersonal networks, with whole-network analysis on 24 team members in an ITO vendor company. In addition, open-ended interviews with six selected team members were utilized to identify the perceived governance structure. Findings – The findings of this study suggest certain features of interpersonal networks, i.e. network density and cross-network comparison, can reflect governance structure in multiple aspects. Meanwhile, the authors also argue that interpersonal networks can influence the form of governance structure. Research limitations/implications – As a single case study, the context of the research site cannot be ignored in the inference of findings. To increase the confidence for further generalization, future empirical studies are needed especially in contrasting sites, such as ITO relations based on network governance. Originality/value – This study associates intra-organizational characteristics of the vendor to the inter-organizational governance structure of the ITO relationship. It also provides an innovative methodology for both researchers and practitioners to assess ITO governance structure.
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Ravi, Siva Prasad, Ravi Kumar Jain, and Wei Song. "IT Outsourcing Strategies." International Journal of Asian Business and Information Management 2, no. 3 (July 2011): 27–39. http://dx.doi.org/10.4018/ijabim.2011070103.
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Several studies pertaining to outsourcing in the banking and financial services sector in developed countries show a gradually growing trend of outsourcing among banking and financial organizations, both in terms of nature and scope of activities outsourced. Outsourcing of Information Technology (IT) services to achieve competitive advantage has become a key part of the organizational strategies in the banking industry. However, not many studies focus on outsourcing trends and practices of banking industries in developing countries like India and China. The present paper investigates the trends in IT outsourcing (ITO) practices among the private and public sector banking institutions in India and makes a comparative analysis of these practices with reference to four importantt dimensions of outsourcing, shoring, sourcing, engagement and duration.
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Słoniec, Jolanta, and Reyes González Rodriguez. "Reasons of Using IT Outsourcing (ITO) — Polish-Spanish Cross-Cultural Analysis." Foundations of Management 10, no. 1 (July 11, 2018): 113–22. http://dx.doi.org/10.2478/fman-2018-0010.
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Abstract The article compares the reasons for using IT outsourcing (ITO) in Polish and Spanish enterprises, based on the authors’ own research. The reasons for the application of ITO have been classified into three groups: economic, technological, and organizational/strategic. On the basis of the classified reasons, a research hypothesis was formulated: Representatives of Polish enterprises assess other groups of reasons as the most important motivation for the use of ITO in their companies compared to Spanish enterprises. On the basis of the authors’ own research, the hypothesis has been confirmed. Polish enterprises assess technological reasons as the most important, whereas Spanish enterprises consider organizational/strategic reasons to be the most important, although the differences in the assessment are not large. The difference in the validity of the reasons for the use of ITO may arise from the maturity of the ITO market in both countries but may also result from the personal experience of the companies with ITO.
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Talpeanu, Andreea Daniela Pana, and Lazar Rusu. "Influential Factors in IT Outsourcing Relationship in a Swedish Municipality." International Journal of Innovation in the Digital Economy 8, no. 3 (July 2017): 1–17. http://dx.doi.org/10.4018/ijide.2017070101.
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Information Technology Outsourcing (ITO) has generated considerable interest within Information Systems (IS) research as a consequence of its benefits in terms of cost efficiency and freedom to focus on core capabilities. This study covers the area of ITO in the public sector, specifically, in Swedish Municipalities where ITO has become a mainstream strategy. The influential ITO factors of the post-contract stage of an ITO relationship are examined and debated in light of existent research literature. The research is based on a case study of a Swedish Municipality and a direct IT vendor. A thematic analysis brings light upon three new ITO influential factors which are: (1) mutual understanding and long-term engagement; (2) Multi-sourcing, and (3) Communication between Municipalities, together with other seven factors present in the research literature that have an influence on the ITO relationship. The findings of this study can support ITO decision-makers from Swedish municipalities in improving the ITO relationship between their organizations and IT vendors.
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Hanafizadeh, Payam, and Ahad Zareravasan. "A Systematic Literature Review on IT Outsourcing Decision and Future Research Directions." Journal of Global Information Management 28, no. 2 (April 2020): 160–201. http://dx.doi.org/10.4018/jgim.2020040108.
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During the recent decades, some academic research on the subject of information technology outsourcing (ITO) decision has appeared in different outlets, which may impede the use of such resources and as a result, repetition of research by various researchers is very likely. The purpose of this paper is then to conduct a systematic literature review (SLR) pertaining to research on ITO decision. Then, this review intends to 1) classify ITO decision literature, 2) provide a list of factors affecting ITO decision, and 3) identify ITO strategies. To this end, 91 ITO articles published between 2000 and 2018 in 51 unique journals were reviewed. The results yielded three kinds of descriptive, relational, and comparative ITO decision studies. The determinants of ITO decisions are classified into technological, organizational, environmental and user adoption factors. Furthermore, the trend of studied ITO strategies in the reviewed literature is analyzed, and future sourcing varietals are proposed. Finally, some insights and future research directions are proposed based on the review results.
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Ravasan, Ahad Zare, Payam Hanafizadeh, Laya Olfat, and Mohammad Taghi Taghavifard. "A Fuzzy TOPSIS Method for Selecting An E-banking Outsourcing Strategy." International Journal of Enterprise Information Systems 13, no. 2 (April 2017): 34–49. http://dx.doi.org/10.4018/ijeis.2017040103.
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Selecting the appropriate IT outsourcing (ITO) strategy is important for firms in general and banking institutions in particular to achieve expected benefits, but it remains complex, risky and lengthy process for clients to select the appropriate ITO strategy. Previous academic efforts to support ITO decision incorporated a limited number of factors, which is over-simplification of multi-faceted real world problems. In this paper, after doing in-depth literature review for identifying influencing factors on such ITO decisions, a model with an application of Fuzzy TOPSIS based approach is proposed to rank and prioritize the alternatives. Throughout this study, the authors use data from a real banking case to run the model for supporting outsourcing decision for five ATM, POS, tele-banking, mobile, and internet-banking services. The proposed model can help ITO decision makers advance their decision making process, especially where parameters involve uncertainties and hardly can be assessed by human judgment.
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Martins, Ana Lucia, Henrique Duarte, and Daniela Costa. "Buyer–supplier relationships in IT outsourcing: consultants’ perspective." International Journal of Logistics Management 29, no. 4 (November 12, 2018): 1215–36. http://dx.doi.org/10.1108/ijlm-11-2017-0288.
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Purpose Supply chain relationships have often been analysed from the macro-perspective of the companies involved, but there is less evidence of how relationships relate to the micro-perspective of persons involved. The purpose of this paper is to investigate, in IT outsourcing (ITO), how the buyer–supplier relationship type strengthens buyer performance from the perspective of consultants. Design/methodology/approach IT consultants were surveyed, and analysis was performed considering the aggregated values of variables that characterise buyer–supplier relationships adjusted to ITO. Findings The results show that strategic relationships are associated with higher supplier investment in relational management than in transactional ones. Similarly, in this type of relationship, higher levels of trust are linked to the recognition of more activities shared between parties involved than in transactional relationships. The improvement of supplier development by buyers was also found to improve buyers’ performance. Research limitations/implications The model proposed here was developed for nonspecific industries but tested in the context of ITO. Further research should be undertaken to broaden generalisability. Originality/value The paper provides an understanding of the influence of the buyer–supplier relationship type on buyer performance based both on relational management and, more specifically, how the formal dimension of supplier development can also contribute to performance. ITO is increasing worldwide, and relational management affects outsourcing outcomes in broad supply chain integration. This analysis is usually visited from buyer and supplier perspectives using decision makers. This paper assesses it from the perspective of consultants.
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Hanafizadeh, Payam, and Ahad Zare Ravasan. "An investigation into the factors influencing the outsourcing decision of e-banking services." Journal of Global Operations and Strategic Sourcing 10, no. 1 (February 20, 2017): 67–89. http://dx.doi.org/10.1108/jgoss-05-2016-0016.
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Purpose This paper aims to provide an in-depth analysis toward understanding the critical factors in affecting information technology outsourcing (ITO) decision in the context of e-banking services in Iran. Within the recent decades, outsourcing IT processes and services as a strategic decision has been widely adopted throughout industries. In this regard, scholars have investigated a wide range of factors influencing ITO decision in various contexts. Design/methodology/approach This research examines a conceptual model that shows impacts of different attributes including technological, organizational and environmental on the Iranian banks’ ITO decision. To validate the research hypotheses, the partial least squares (PLS) technique for data analysis, is utilized. Findings The results of this study derived from the theoretical discussion of hypotheses illustrated that 9 of 11 assumed factors (i.e. perceived tangible benefits, perceived intangible benefits, perceived risks, perceived information security/privacy, complete contract establishment capability, making strong trustworthy relationship capability, uncertainty in business requirements, external pressure and market maturity) influence ITO decision in the target industry. The findings also confirmed that the size of the bank and competitors’ absorptive capacity did not exert any influence on their service outsourcing decision. Research limitations/implications The sampling was confined to experts in the banking industry. Also, the results of this study reflect Iranian perspective. Consequently, generalization based on this sample would be interpreted cautiously and a limitation of the context should be kept in mind. Originality/value Insights into policymaking for suitable drivers to outsource e-banking services in the context of a less developed country are the main outcomes of the current research.
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Wang, Jian-Jun, Negin Sasanipoor, and Meng-Meng Wang. "The influence of PRINCE2 standard on customer satisfaction in information technology outsourcing: an investigation of a mediated moderation model." Journal of Enterprise Information Management 33, no. 6 (June 2, 2020): 1419–42. http://dx.doi.org/10.1108/jeim-08-2019-0223.
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PurposeThe purpose of this paper is to explore the influence of PRINCE2 (PRoject IN Controlled Environments 2) standard on customer satisfaction jointly with vendor relationship management capability in the information technology outsourcing (ITO) context. This paper further tries to explore the above underlying mechanism by studying the mediating effect of deliverable quality.Design/methodology/approachThis paper develops a mediated moderation model to explain the underlying influence processes of PRINCE2 standard, vendor relationship management capability and deliverable quality on ITO customer satisfaction. By conducting a pair-wise survey of 260 project managers in seven Iranian firms, the model and hypotheses are empirically tested with the partial least squares method.FindingsOur results suggest that firms benefit more in terms of IT costs reduction when they have a higher level of complementary investment in an external standard, especially through an interplay effect of the external standard and internal relational aspect. Firms can make business processes more amenable to outsourcing and facilitate monitoring of vendor performance and effective coordination with vendors. More interestingly, we find that this interactive effect is fully mediated by deliverable quality, which, in turn, directly increases ITO customer satisfaction.Originality/valueThis study adds some new knowledge and provides new views to study ITO customer satisfaction by addressing the importance of PRINCE2 standard. This study further enhances our understanding in terms of the underlying pathway through which the PRINCE2 standard jointly affects customer satisfaction with vendor relationship management capability and deliverable quality. With the effort of explicitly explaining the complex mechanisms, this study helps ITO managers proactively escort outsourcing activities and projects.
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Lacity, Mary, Erran Carmel, and Joseph Rottman. "Rural Outsourcing: Delivering ITO and BPO Services from Remote Domestic Locations." Computer 44, no. 12 (December 2011): 55–62. http://dx.doi.org/10.1109/mc.2011.377.
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Silva, Maisa Mendonça, Thiago Poleto, Ana Paula Henriques de Gusmão, and Ana Paula Cabral Seixas Costa. "A strategic conflict analysis in IT outsourcing using the graph model for conflict resolution." Journal of Enterprise Information Management 33, no. 6 (April 20, 2020): 1581–98. http://dx.doi.org/10.1108/jeim-12-2018-0266.
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PurposeThe purpose of this paper is to propose a strategic conflict analysis, based on the graph model for conflict resolution (GMCR), that is applied to information technology outsourcing (ITO) in a real-world software development and implementation process in Brazil.Design/methodology/approachBecause the idea of this study is to answer “why” the ITO conflicts occur and “how” they can be avoided, the case study methodology was adopted. The software GMCR II was used to analyze the interactions between an IT vendor and an IT client.FindingsThe results suggest that a lack of relational governance is a critical issue that could be handled to improve the interaction between those involved.Research limitations/implicationsThe main results are restricted to the case study and cannot be generalized. Moreover, a specific limitation of this paper pertains to the use of the GMCR and the consequent difficulty for IT vendors and IT clients to work with a large number of actions and to set preferences for several states of conflict.Practical implicationsThe strategic analysis of outsourcing conflicts provides a holistic view of the current situation that may assist the client and vendor in future decisions and identify guidelines to ensure successful ITO. Therefore, this paper provides an effective guide for clients and vendors to better manage conflicts and establish a contingency vision to avoid such disputes.Originality/valueThe ITO conflict is analyzed using the GMCR, considering both perspectives of the outsourcing process (vendors and clients).
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Eskelund, Karsten, Helena Grunfeld, and Phal Des. "Exploring the Competitiveness of Cambodia as an IT Outsourcing Destination." Journal of Global Information Management 28, no. 2 (April 2020): 29–51. http://dx.doi.org/10.4018/jgim.2020040102.
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Using assessment criteria from the A.T. Kearney global services location index, the authors explore Cambodia's competitiveness in the global IT outsourcing market (ITO), identifying how the country could become more competitive. The findings are discussed from the perspective of the Heeks and Nicholson software export success model, assessing Cambodia from a national competitiveness perspective. With ITO's export revenue and skills development potential, it is important to understand why Cambodia is not considered a significant ITO destination and what the country can do to increase its competitiveness in this area. This paper is useful for practitioners considering Cambodia as an ITO destination, for the Cambodian government as a guide to policy measures for increasing its competitiveness as well as for IT researchers, who could complement the study with primary data and development the conceptual approaches applied in this article, whether in Cambodia or other developing countries.
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Poleto, Thiago, Thárcylla Rebecca Negreiros Clemente, Ana Paula Henriques de Gusmão, Maisa Mendonça Silva, and Ana Paula Cabral Seixas Costa. "Integrating value-focused thinking and FITradeoff to support information technology outsourcing decisions." Management Decision 58, no. 11 (July 6, 2020): 2279–304. http://dx.doi.org/10.1108/md-09-2019-1293.
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PurposeThe information technology (IT) outsourcing (ITO) decision is a key issue in strategic and operational management and is considered a main critical factor influencing successful organizational performance and technology assessment. The purpose of this paper is to propose a framework combining value-focused thinking (VFT) methodology and the FITradeoff method to support decisions regarding ITO.Design/methodology/approachThis study answers the following questions: How to identify, in a structured way, the objectives that should be considered in an ITO decision process in a changing environment? How to identify new IT services to be outsourced from the established objectives? The VFT method is recommended in this case to structure and model the problem. Moreover, the FITradeoff multicriteria method was considered in this study to support the evaluation and prioritization of IT services in an ITO decisionFindingsThe framework provides promising results for ITO decisions. This study revealed that a lack of strategic and fundamental objectives is a critical issue in making ITO decisions. Although the VFT methodology is subjective in nature, it promotes a better understanding of goals and values, and FITradeoff allows the decision-maker to make comparisons of consequences based on his/her preferences.Research limitations/implicationsThe recommendations of the study are restricted to the case study and cannot be generalized. In addition, applying the method requires attention in determining the criteria used for outsourcing IT.Practical implicationsThe strategic analysis of ITO provides a holistic view of the current situation since (i) the VFT methodology enables the IT manager to generate new alternatives to assist future decisions and (ii) FITradeoff has been demonstrated as a suitable option to evaluate ITO decisions.Originality/valueTo the best of our knowledge, this is the first paper to utilize a problem structuring method (VFT) to identify criteria and alternatives based on the organizational values and objectives. This is integrated with a multicriteria method that uses partial information and may consequently lead to fewer inconsistencies (FITradeoff) in the context of ITO.
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Mukherjee, Santanu. "Collaborative governance strategies for a strategic offshore IT outsourcing engagement." Journal of Global Operations and Strategic Sourcing 10, no. 2 (June 19, 2017): 255–78. http://dx.doi.org/10.1108/jgoss-11-2016-0037.
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Purpose This research study aims to establish the significance of collaborative governance practices in creating higher business value from an offshore IT outsourcing (ITO) relationship. Design/methodology/approach At the outset, a Delphi technique identifies the most significant ITO success criteria from a prescribed list, which is the outcome of a review and analysis of existing research articles. Subsequently, an empirical survey captures the perceptions of provider-side middle level professionals to prioritize these significant success criteria, which are the outcome of the Delphi study. Statistical analysis of the prioritized success criteria delivers a set of success factors, which forms the basic building blocks to formulate a set of offshore governance strategies. A real-life case evidence shows the practicability of implementing the proposed strategies underlining the similar practices taken up in the past. Findings A set of strategies and best practices for establishing collaborative governance mechanisms within a strategic offshore ITO. Research limitations/implications This research study captures the perspectives of Indian service providers only. Originality/value This comprehensive study helps the contractual parties harness and augment the positive impacts of success factors in implementing superior contractual, relational and performance governance strategies within a strategic ITO initiative. A collaborative program management mechanism ensures the fruitful implementation of proposed strategies with the active support of top management of contractual parties. Consequently, the proposed strategies help offshore providers assess and augment their service capabilities for higher business efficiency and value creation.
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Hodosi, Georg, Lazar Rusu, and Seungho Choo. "A Risk Based View of Influential Factors in IT Outsourcing Relationship for Large Multinational Companies." International Journal of Social and Organizational Dynamics in IT 2, no. 3 (July 2012): 29–47. http://dx.doi.org/10.4018/ijsodit.2012070103.
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Information Technology Outsourcing (ITO) is well spread among large Multinational Companies (MNCs) in Europe, and it is expected to increase even more. The authors’ focus is the service buyer company who needs a well working relation with its ITO supplier for handling emergent issues, daily operation and events that have not been foreseen. In the last years, an increasing attention has been paid to improve ITO relationship. Reviewing the research literature, they have not found any studies about Influential Factors (IFs) that could improve the ITO relationship, nor, how risk factors are interrelated to ITO relationship. Therefore, the authors address this issue by providing 15 IFs that could improve the ITO relationship for large MNCs and their providers and could help the service buyers companies’ to concentrate on these IFs. Additionally, the authors developed a framework that could support the ITO decision makers in both mitigating the risks and improving the ITO relationship.
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Blaskovich, Jennifer, and Natalia Mintchik. "Accounting Executives and it Outsourcing Recommendations: An Experimental Study of the Effect of CIO Skills and Institutional Isomorphism." Journal of Information Technology 26, no. 2 (June 2011): 139–52. http://dx.doi.org/10.1057/jit.2010.19.
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Although substantial effort has been devoted to understanding how cost issues drive Information Technology outsourcing (ITO), several researchers have proposed that this narrow focus ignores the role of more subtle factors. This paper addresses this concern by investigating internal and external influences on accounting executives’ recommendations to outsource the IT infrastructure. Using resource-based and institutional theories, we hypothesize that when the chief information officer's (CIO's) skills are strong, accounting executives will more likely advise against outsourcing. But when the skills are weak, accountants are more likely to mimic the outsourcing actions of industry peers. Our findings support this expectation. These results should interest IS, accounting, and general management scholars. Strategic IT choices are a collegial decision which include contributions from multiple members of the top management team. Senior accounting executives are routinely involved in such evaluations, providing initial projections and monitoring the consequent progress. In addition, recent US regulations have made accounting executives personally responsible for the effectiveness of internal controls, including those over the IT infrastructure. The accounting executives’ recommendations on ITO in this context often becomes decisive, and factors behind this recommendation should be fully explored.
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Kivijärvi, Hannu, and Jussi Toikkanen. "Measuring the business value of IT outsourcing: a systems approach." Strategic Outsourcing: An International Journal 8, no. 2/3 (June 15, 2015): 156–79. http://dx.doi.org/10.1108/so-03-2015-0010.
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Purpose – The purpose of this study is to examine information technology (IT) outsourcing measurement systems. This paper proposes a systemic framework which can be used to support the evaluation of existing and the development of new measurement systems in the outsourcing context. The framework is built on the multidimensional characteristics of the business value created by IT outsourcing (ITO). Design/methodology/approach – After the conceptual discussion, this paper develops a systemic procedure for evaluating and developing measurement systems. The proposed procedure is applied in a multinational corporation operating in the electronics industry and conducting global business. First, the characteristics of the previous measurement system are evaluated, then the systemic properties of the current system are assessed and, finally, a new measurement system is proposed. Findings – The findings reveal that the measurement systems differ on many levels, namely, input, measurement process and output. The framework provides a structure for proper comparison of alternative measurement systems. When comparing the results to the most commonly used ITO theories, specifically the resource-based view and transaction cost economics, it is somewhat surprising that individual elements such as the cost of outsourcing and focus on core competencies were not weighed any higher in the final results. Practical implications – Organizations have difficulties in measuring actual benefits, opportunities, costs or risks involved in outsourcing transactions. The proposed framework forms a basis to resolve the measurement problems and even support the actual sourcing decisions. The applicability of the proposed approach was verified by evaluating three different types of measurement systems in a multinational corporation conducting global business in the electronics industry. Originality/value – Different kinds of measurement systems can be evaluated by the same systemic framework. The evaluation process is not limited to qualitative or quantitative assessments, but the same framework can be used in both cases.
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Chou, Tzu-Chaun, Shu-Mei Hsu, and Gwo-Guang Lee. "The Impacts of Network Governance on the Performance of ITO." Journal of Global Information Management 21, no. 4 (October 2013): 56–76. http://dx.doi.org/10.4018/jgim.2013100104.
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Information technology outsourcing (ITO) has been a spotlight issue for global enterprises and previous studies have suggested that ITO research has expanded from one organization and bilateral partnerships to a global form of network organization. Yet, little research has been conducted on the link between network governance and ITO performance as a way to understand an organization’s ITO efforts. This study proposes a model that employs several constructs: inter-organizational coordination, contractual governance and relational governance, and technological hegemony. The model explores the mediating roles of these governance mechanisms and the moderating role of technological hegemony as it influences the IT manager’s perception of the performance of ITO. Empirical testing of the model is based on a sample of 191 companies from Taiwanese industries. The results support the mediating effect of relational governance and the moderating effect of technological hegemony. The model and results offer a perspective on managing the performance of ITO as well as initial insight into the role of technological hegemony.
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Hodosi, Georg, Sanaz Manavi, and Lazar Rusu. "Risk Factors in IT Outsourcing and the Theories Decision Makers Use to Resolve Them." International Journal of Social and Organizational Dynamics in IT 3, no. 2 (April 2013): 41–54. http://dx.doi.org/10.4018/ijsodit.2013040103.
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In this paper the Risk Factors (RFs) in IT Outsourcing (ITO) theories from a service buyer perspective are explored. A comparative study about how Transaction Cost Theory (TCT), Core Competency Theory (CCT) and Agency Theory (AT) cover the RFs has been performed. A framework describing, how the theories cover the RFs has been developed and tested using a case study research methodology. The interviews with companies for testing the framework have been used to get an indication about which ITO theories the decision makers are using in their ITO. This study shows that TCT fully covers all RFs, AT covers almost all and CCT has the lowest coverage. The theories, which are used by the ITO decision makers, could only partially be answered. Risk handling could not be entirely mapped to the theories. Risk and risk mitigation were the main concerns for some of the interviewees, CCT for some others. This study recommends using both TCT and CCT for a successful ITO.
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Aasi, Parisa, Ivan Nunes, Lazar Rusu, and Georg Hodosi. "The Impact of Different Organizational Cultures on IT Outsourcing Relationship Management." International Journal of Innovation in the Digital Economy 4, no. 2 (April 2013): 50–66. http://dx.doi.org/10.4018/jide.2013040105.
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Globalization has affected the organizations in many aspects such as structure, architecture, internal/external strategies and sourcing management. Outsourcing is one of the recent business strategies used to provide IT needs via external agents. The relationship between the service buyer and provider companies is a constituent playing a significant role in IT outsourcing success or failure. This research has a focus on the influence of organizational culture of buyer companies on the specific factors of trust, cooperation, communication and commitment in their relationship with the IT service provider. Two explorative case studies are done in global companies using ITO which revealed the presence of organizational culture effect. Particularly, being innovative, having open discussion as an organizational culture and looking for extending contracts with providers as a strategy, appeared as the major difference between the two cases organizational culture; which influences the studied factors of ITO relationship in this research.
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Oshri, Ilan, Julia Kotlarsky, Joseph W. Rottman, and Leslie L. Willcocks. "Global sourcing: recent trends and issues." Information Technology & People 22, no. 3 (August 21, 2009): 192–200. http://dx.doi.org/10.1108/09593840910981400.
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PurposeThe purpose of this paper is to review recent trends and issues in global IT sourcing and to introduce papers in the special issue: “Social, managerial and knowledge aspects in global IT sourcing”.Design/methodology/approachThe paper examines trends by regions including Brazil, Russia, India and China and also trends in Captive Centres and their strategies.FindingsThere will be a continuing rise in outsourcing revenues for global outsourcing, with BPO overtaking ITO within five years. Multi‐sourcing will continue to be the dominant trend. India will continue to dominate but its role will change. China heralds promise but will still struggle to achieve scale in Western European and North American markets. Emerging country competition will intensify. Software as a service will be a “slow burner” but will gain momentum in the second half of the next decade. Near‐shoring will be a strong trend. Outsourcing, by offering a potential alternative, will help discipline in‐house capabilities and service. Knowledge process outsourcing will increase as the BRIC and emerging countries move up the value chain. Captive activity – both buying and selling – will increase (see below). Outsourcing successes and disappointments will continue as both clients and suppliers struggle to deal with a highly dynamic set of possibilitiesOriginality/valueThe paper is of value to both academics and practitioners working in the field of IT sourcing. The study of captive centres is in its early stages and the paper introduces further work in this area.
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Huang, Kun. "Research on Risk Early-Warning of Information Technology Outsoucing Project Based on Neural Network." Applied Mechanics and Materials 411-414 (September 2013): 2400–2405. http://dx.doi.org/10.4028/www.scientific.net/amm.411-414.2400.
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Information technology outsourcing (ITO) project is a high risk project with characters of complex collaborative relationship is, high degree of creativity, uniqueness, uncertainty, large investment amount, high-tech. It is conditioned by many factors and subject to strict requirements of the employer. More and more enterprises recognize that not carrying out effective risk management in ITO project is nothing else but a "commercial suicide". Combining with the neural network model, the paper determines risk level of ITO project and risks early-warning aiming at the overall risk of ITO project. In this paper, the artificial neural network model has been analyzed. And risk level of ITO project has been confirmed. On the basis of overview of the ITO project in company S, risk early-warning model has been established with a case. The author believes that risk early-warning model would be beneficial to the overall efficiency of risk management of ITO project.
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Duhamel, Francois, Isis Gutiérrez-Martínez, Sergio Picazo-Vela, and Luis Felipe Luna-Reyes. "Strategic alignment, process improvements and public value in public-private IT outsourcing in Mexico." International Journal of Public Sector Management 34, no. 5 (February 12, 2021): 489–507. http://dx.doi.org/10.1108/ijpsm-07-2020-0183.
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PurposeThe authors propose a conceptual model that explains how interorganizational relations in public-private IT outsourcing (ITO) may enhance public value in public administrations through process improvement.Design/methodology/approachThe research design is based on the development of a theoretical framework based on the integration of transaction cost theory (TCT) and the resource-based view (RBV), and empirical interview data from IT managers in state and local governments in Mexico.FindingsFirst, public-private ITO does produce specific process improvements in Mexico's public administration given its specific institutional context. Second, public value depends on the alignment between the characteristics of IT project activities and the attributes of outsourcing as a mode of governance. Third, process improvements moderate this relation. Fourth, relevant process improvements are identified on an empirical basis, showing the importance of institutional conditions in the determination of public value through interorganizational relationships in the public sector.Practical implicationsThe authors suggest new roles for public managers as orchestrators of interorganizational relations, and specify the orientation relevant process improvements could take in a specific institutional context.Originality/valueThrough this study, it is possible to gain both theoretical and practical understanding of process improvements in public administrations to enhance public value.
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Lacity, Mary, and Leslie Willcocks. "Business process outsourcing and dynamic innovation." Strategic Outsourcing: An International Journal 7, no. 1 (February 11, 2014): 66–92. http://dx.doi.org/10.1108/so-11-2013-0023.
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Purpose – This paper aims to answer the question: how do clients and BPO service providers work together to foster dynamic innovation? Dynamic innovation is a process by which clients incent providers to deliver many innovations each year that improve the client's performance in terms of operational efficiency, process effectiveness and/or strategic impact. Design/methodology/approach – The paper is based on research conducted in 2011 and 2012 and includes 202 survey responses and 48 in-depth interviews in 24 client organizations. Findings – The most effective innovation incentives are mandatory productivity targets, innovation days, and gain-sharing at the project level. Threat of competition and special governance arrangements for innovation also positively influence innovation. The least successful incentives for innovations were found to be innovation funds, gainsharing at the relationship level, what has been called “pain-sharing”, and benchmarking. Research limitations/implications – The 24 BPO relationships do not represent a random sample, but rather a convenience sample. The authors aimed to understand emerging best practices from high-performing BPO relationships, thus the paired interview samples are purposefully biased towards higher-performing relationships. Practical implications – Delivering innovations requires a process the authors call AIFI – acculturating, inspiring, funding, and injecting. The research finds that leadership pairs are key drivers of the dynamic innovation process. Leadership pairs jumpstart the dynamic innovation process by starting with innovation incentives. Even so, just having one right leader makes a positive difference. The positive difference is stronger if that leader is on the client side rather than the provider side. With no right leaders, the practices that the authors describe are less efficacious but still have positive impacts on the levels of innovation experienced. Originality/value – In the ITO and BPO literatures, researchers have under-examined the more strategic drivers of outsourcing, including innovation. This research examines the process and practices that deliver dynamic innovation in client organizations.
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Lacity, Mary C., Stan Solomon, Aihua Yan, and Leslie P. Willcocks. "Business Process Outsourcing Studies: A Critical Review and Research Directions." Journal of Information Technology 26, no. 4 (December 2011): 221–58. http://dx.doi.org/10.1057/jit.2011.25.
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Organizations are increasingly sourcing their business processes through external service providers, a practice known as Business Process Outsourcing (BPO). Worldwide, the current BPO market could be as much as $279 billion and is predicted to continue growing at 25% annually. Academic researchers have been studying this market for about 15 years and have produced findings relevant to practice. The entire body of BPO research has never been reviewed, and this paper fills that gap. We filtered the total studies and reviewed 87 empirically robust BPO articles published between 1996 and 2011 in 67 journals to answer three research questions: What has the empirical academic literature found about BPO decisions and outcomes? How do BPO findings compare with Information Technology Outsourcing (ITO) empirical research? What are the gaps in knowledge to consider in future BPO research? Employing a proven method that Lacity et al. (2010) used to review the empirical ITO literature, we encapsulated this empirical literature on BPO in a way that is concise, meaningful, and helpful to researchers. We coded 43 dependent variables, 152 independent variables, and 615 relationships between independent and dependent variables. By extracting the best evidence, we developed two models of BPO: one model addresses BPO decisions and one model addresses BPO outcomes. The model of BPO decisions includes independent variables associated with motives to outsource, transaction attributes, and client firm characteristics. The model of BPO outcomes includes independent variables associated with contractual and relational governance, country characteristics, and client and supplier capabilities. Overall, BPO researchers have a broad and deep understanding of BPO. However, the field continues to evolve as clients and suppliers on every inhabited continent participate actively in the global sourcing community. There is still much research yet to be done. We propose nine future paths of research pertaining to innovation effects, retained capabilities, environmental influences, global destinations, supplier capabilities, pricing models, business analytics, emerging models, and grounded theory development.
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Watjatrakul, Boonlert. "Vendor selection strategy for IT outsourcing: the weighted-criteria evaluation technique." Journal of Enterprise Information Management 27, no. 2 (February 4, 2014): 122–38. http://dx.doi.org/10.1108/jeim-04-2012-0015.
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Purpose – Most firms select their information technology outsourcing (ITO) vendors based on the two methods of the weighted-criteria evaluation technique – the “qualification score plus the lowest bid price for the highest price score (QS-LBHPS)” and the “qualification score plus the average bid price for the middle price score (QS-ABMPS).” This paper aims to understand whether these two methods provide the same or different results of vendor selection and how the proportional weights of a vendor's qualification and bid price affect the vendor selection results under the two methods. Design/methodology/approach –In total, 1,000 experimental tests were carried out using the developed spreadsheet template to examine vendor selection results of the two methods (QS-LBHPS and QS-ABMPS) and compare the vendor selection results under three conditions of vendors’ qualification and price weights. A correspondence analysis was also used to determine the proximal relationships among the selection results of the weighted criteria technique under the comparable methods. Findings – The results indicate that, when using the two methods of the weighted criteria technique for a vendor selection, the selection results are significantly correspondent. In addition, the proportions of qualification and price weights affect the selection results under the two methods. The different proportions of qualification and price weights under the two methods yield the same selection results rather than different results. Originality/value – This study fills the gap in ITO literatures concerning the vendor selection strategy. No empirical studies have been undertaken to compare the results of vendor selection under the two methods of the weighted-criteria evaluation technique. The findings enable a firm's selection team to apply the weighted-criteria evaluation technique effectively and realize that vendor selection results are altered based on the predefined proportions of qualification and price weights.
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Jun, Je-Man, and Seon-Gyu Yi. "Adjustment effect of the suitability factors of strategy between Information Technology Outsourcing(ITO)'s influence and outcome factors in Government offices." Journal of Digital Policy and Management 11, no. 12 (December 28, 2013): 29–40. http://dx.doi.org/10.14400/jdpm.2013.11.12.29.
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Samadi, Homa, Salman Nazari-Shirkouhi, and Abbas Keramati. "Identifying and Analyzing Risks and Responses for Risk Management in Information Technology Outsourcing Projects Under Fuzzy Environment." International Journal of Information Technology & Decision Making 13, no. 06 (November 2014): 1283–323. http://dx.doi.org/10.1142/s021962201450076x.
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Due to ever-increasing trend in outsourcing information technology projects in today's competitive world, the risk management in information technology outsourcing (ITO) projects is a challenging issue. Hence, this paper reviews and extracts present corresponding risks by literature review to implement risk management in ITO. After reviewing a number of frameworks in the literatures related to prioritizing of extracted risk factors, a new framework is presented to determine the priority of them. Because of network structure of the proposed framework and multi-dimensional nature of the project risk, the fuzzy analytic network process (fuzzy ANP) is applied to prioritize risk factors. Also, since identifying and prioritizing of risk factors cannot necessarily meet the organization's needs related to the project risk, the ways to respond to these factors are evaluated. For this purpose, responses to the five highest ranked risk factors are considered. Prioritization of responses to these risk factors is done by applying fuzzy technique for order preference by similarity to ideal solution (fuzzy TOPSIS) based on four criteria: quality, cost, time, and scope. Results, achieved from experts' judgment, show that the risk factor "Supplier's lack of expertise with an IT operation" is the most significant. Also, the best response for this factor, is "Review of monetary value and volume of suppliers' contracts prior to their selection" according to experts' point of view. In addition, a sensitivity analysis is carried out for validating the results.
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Koku, Paul Sergius. "A view from the street: an exploratory study of consumer attitudes toward offshoring of professional services in the United States." Journal of Services Marketing 29, no. 2 (April 13, 2015): 150–59. http://dx.doi.org/10.1108/jsm-10-2013-0263.
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Purpose – The study aims to examine consumer attitudes toward offshore-outsourcing of professional services in the USA. It focuses on the services of accountants, attorneys and doctors to provide a framework for discussing policy and marketing implications. Design/methodology/approach – The study reviews a review of the literature on consumer decision-making under uncertainty and attitude formation, and a focus group study to examine consumers’ attitudes toward offshore-outsourcing of professional services. Findings – Contrary to reports in the popular press, this paper suggests that consumers do not have a generalized negative attitude toward offshore-outsourcing of all forms of professional services. While consumers do not mind offshore-outsourcings of the services of medical doctors and attorneys, they seem to be concerned about offshore-outsourcings of accounting or financial services. These results suggest that persons engaged in offshore-outsourcings of tax and other related services must re-strategize. Research limitations/implications – While the results of this study offer a window into the US consumers’ feelings about offshore-outsourcings of professional services, the results lack generalizability, as they are based on an exploratory study. Practical implications – Even though outsourcing has received a lot of media attention and some limited attention from academics, no study, to the best of the authors’ knowledge, has specifically investigated US consumers’ attitudes toward offshore-outsourcings of professional services. Given the fact that the trend is growing instead of abating, a study, such as the current one, that investigates how consumers feel about the practice is not only timely but will also provide valuable information to managers for strategy reformulation and to lawmakers for regulation purposes. Originality/value – This paper, to the best of the authors’ knowledge, is the first to specifically examine consumer attitude toward offshoring of the basic professional services – the services of doctors, accountants and attorneys.
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ORUGBO, Ena E., Babakalli M. ALKALI, Anjali DESILVA, and David K. HARRISON. "ALIGNMENT MODEL FOR TRUNK ROAD NETWORK MAINTENANCE OUTSOURCING." JOURNAL OF CIVIL ENGINEERING AND MANAGEMENT 22, no. 4 (September 1, 2015): 500–508. http://dx.doi.org/10.3846/13923730.2014.897985.
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Road maintenance outsourcing is now the foremost strategy by which road authorities procure maintenance works. Despite growing application of road maintenance outsourcing, there are conflicting estimates on the effectiveness of road maintenance outsourcing and shortage of appropriate models to align over optimistic expectations of road authorities from road maintenance outsourcing with substantiated benefits. This paper investigates the efficacy of road maintenance outsourcing. In this paper, the different variants of road maintenance outsourcing and road maintenance works are evaluated with a SWOT analysis and a comprehensive literature review respectively. In addition, a road maintenance outsourcing alignment model based on a decision tree and Balance Score Card is proposed and illustrated with a Nigerian trunk road network authority as a case study. The result of the SWOT analysis and comprehensive literature review establishes fresh insight into road maintenance outsourcing dynamics. The presented road maintenance outsourcing alignment model provides adequate pathways that could assist road authorities identify the most appropriate road maintenance outsourcing variant for road maintenance procurement. In addition it aligns actual benefits and expectations of road maintenance outsourcing and facilitates development of SMART metrics for effective assessment of road maintenance outsourcing. The proposed model is applicable across other infrastructures.
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Dibetso, Olebogeng Glad, Margaret Mary Sutherland, and Caren Brenda Scheepers. "Stakeholder views on the drivers and inhibitors of performance of outsourced information technology employees." European Business Review 30, no. 4 (June 11, 2018): 446–69. http://dx.doi.org/10.1108/ebr-02-2017-0029.
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PurposeThe purpose of this study is to empirically quantify the factors that are perceived to drive or inhibit performance of information technology (IT) outsourced employees from a range of information technology outsourcing (ITO) stakeholders in South Africa.Design/methodology/approachThe first phase was a qualitative study on 19 stakeholders focussed on the development of the constructs. The second phase was quantitative, with a sample of 116 ITO stakeholders of the largest IT company in South Africa.FindingsThe study revealed that the ITO stakeholders had misaligned perceptions on inhibitors and somewhat congruent perceptions with regards to drivers of performance. Managers and poor performers’ perceptions of inhibiting factors of performance were significantly different. The empirical evidence showed that the key drivers of performance were intrinsic factors and leadership, whilst the inhibiting factors were mainly related to poor leadership.Research limitations/implicationsThe major limitation was that the population was represented by one large organisation in the South African IT industry and its clients, thereby excluding the rest of the IT industry participants, specifically the medium and small IT companies. The quota sample resulted in a non-probability study, and thus, the results of this study may not necessarily be generalised to other populations. This study’s findings on differences between good and poor performers must be investigated in other industries.Practical implicationsFor outsourced employees to perform optimally, some key intrinsic factors must be fulfilled. Passion and pride, aligned to a meaningful job role, will unleash outstanding performance. Organisations need to ensure that there is regular feedback to managers on their performance and subsequent leadership development. Alignment of managers and poor performers’ perceptions on drivers and inhibitors could improve performance.Social implicationsThese findings demonstrate the large gap in perceptions about the key drivers and inhibiters of performance.Originality/valueThe study reveals that top performers tend to have higher order and intrinsic motivators, compared to poor performers, who have a mixture of extrinsic and intrinsic needs, and managers have a misaligned expectation of extrinsic motivators.
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Ma, Yan, Chun Xiao Xia, Bao Quan Song, and Yue Xian Zhang. "An Outsourcing Decision-Making Model Based on Options Valuation Theory." Advanced Materials Research 204-210 (February 2011): 617–21. http://dx.doi.org/10.4028/www.scientific.net/amr.204-210.617.
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The valuation of options is an important research topic of modern options pricing theories. In this paper, an outsourcing decision model is built based on options valuation theory. We classified the cost of outsourcing into three independent spheres including strategic, managing, and executive. Then, we quantified these notional costs by the means of options valuation. Furthermore, we get the boundary qualification of outsourcing in the framework of “cost-benefit” by comparing outsourcing’s general cost with its benefit on the point of numerical cost of risk. A numerical example is given to illustrate the feasibility of the decision-making model.
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Qi, Cong, and Patrick Y. K. Chau. "Relationship or contract? Exploring the key factor leading to IT outsourcing success in China." Information Technology & People 28, no. 3 (August 3, 2015): 466–99. http://dx.doi.org/10.1108/itp-10-2014-0236.
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Purpose – Effective management of IT outsourcing continues to be a challenge to organizations today. Organizations in China suffer from even bigger problems than other regions of the world. The IT outsourcing market is in its infancy and the outsourcing practice is still at its initial stage. Regarding to the outsourcing management issues, the literature has explored the role of either the relationship or contract in governing IT outsourcing success. However, few efforts have been paid to investigate the effects of both relationship and contract on IT outsourcing success from a holistic view. The paper aims to discuss these issues. Design/methodology/approach – This study develops a conceptual model and empirically tests it through a cross-sectional survey conducted in five big cities of Mainland China. Findings – The data analysis results identified the dimensionalities of relationship, contract and IT outsourcing success and proved the causal relationships between these three constructs. Originality/value – This research re-emphasizes the importance of relationship in IT outsourcing success and the fundamental role of contract in developing a sound relationship. It also gives some implications on how to evaluate IT outsourcing success in China, an emerging market for IT outsourcing.
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Blijleven, Vincent, Yiwei Gong, Afshin Mehrsai, and Kitty Koelemeijer. "Critical success factors for Lean implementation in IT outsourcing relationships." Information Technology & People 32, no. 3 (June 3, 2019): 715–30. http://dx.doi.org/10.1108/itp-01-2016-0002.
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PurposeFollowing positive results of Lean implementation in manufacturing environments, Lean has become an emerging philosophy for clients and suppliers of information technology (IT) services. However, how to implement Lean in IT outsourcing relationships has been addressed sparsely in academic literature. The purpose of this paper is to investigate critical success factors (CSFs) for implementing Lean in IT outsourcing relationships. Key findings, implications and avenues for future research are discussed.Design/methodology/approachSix IT outsourcing relationships were qualitatively investigated by means of 36 semi-structured interviews. CSFs were identified based on interview transcription analyses, selection techniques and expert reviews.FindingsIn total, 16 CSFs for Lean implementation in IT outsourcing relationships are identified and described.Practical implicationsThe CSFs presented in this paper indicate key areas that deserve managerial attention to steer Lean implementation efforts in IT outsourcing relationships in a favorable direction.Originality/valueThis study is the first to describe the phenomenon of “Lean IT outsourcing” and provides researchers and practitioners with a foundation to further examine Lean implementation in IT outsourcing relationships.
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Babin, Ron, and Adrian Quayle. "ISO 37500 – Comparing outsourcing life-cycle models." Strategic Outsourcing: An International Journal 9, no. 3 (November 21, 2016): 271–86. http://dx.doi.org/10.1108/so-04-2016-0013.
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Purpose This paper aims to illustrate the value of the outsourcing life cycle, as described in several industry models, including ISO 37500. Design/methodology/approach The authors present a comparison of outsourcing life cycles to provide an overview of current practices in the global outsourcing industry. Findings Several outsourcing life cycles have been defined by industry associations such as the International Association of Outsourcing Professionals (IAOP) and the National Outsourcing Association (NOA). Academic research has created several outsourcing life cycles, notably the model from the London School of Economics (Cullen and Willcocks, 2005). Finally, commercial models have been defined, for example the Vendor and Sourcing Management model from IDC (2014). Research limitations/implications Researchers will find the overview of different life cycles useful in assessing maturity of outsourcing organizations. Practical implications Practitioners will find the detailed description of ISO 37500 and the comparative life cycles to be illustrative of different approaches to managing outsourcing transactions. Both buyers and providers will be able to compare their own life cycle to industry standards. Originality/value Little or no research has been conducted on how outsourcing life cycles contribute to effective outsourcing. This paper provides a foundation for such research.
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Bajec, Patricija. "Evolution of Traditional Outsourcing into Innovative Intelligent Outsourcing - Smartsourcing." PROMET - Traffic&Transportation 21, no. 2 (March 2, 2012): 93–101. http://dx.doi.org/10.7307/ptt.v21i2.215.
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The concept and practice of traditional outsourcing is certainly not a new concept. Globalisation, competition and other market pressures have driven more businesses to consider using logistics provider to increase efficiency and effectiveness [11]. Many companies have successfully used traditional outsourcing to lower costs and have improved the bottom line. However, unless the company’s efforts are unusually good, true competitive advantage is fleeting when competitors begin outsourcing and achieving similar results [2]. Some companies have discovered even greater returns are possible and are now using advanced form of outsourcing – intelligent outsourcing or smartsourcing, to drive new revenues, quicken time-to-market, and increase innovation [2]. This shift, from traditional outsourcing to intelligent outsourcing - smartsourcing which has become a competitive advantage and is likely over time to become a competitive necessity for all, will be analysed in this paper. KEY WORDS: logistics, growth, globalization, traditional outsourcing, innovation, intelligent outsourcing - smartsourcing
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Seuring, Stefan A. "Outsourcing into service factories." International Journal of Operations & Production Management 23, no. 10 (October 2003): 1207–23. http://dx.doi.org/10.1108/01443570310496634.
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Cullen, Sara, Peter B. Seddon, and Leslie P. Willcocks. "IT outsourcing configuration: Research into defining and designing outsourcing arrangements." Journal of Strategic Information Systems 14, no. 4 (December 2005): 357–87. http://dx.doi.org/10.1016/j.jsis.2005.07.001.
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Hunter, James D., and Allastair N. Hall. "From the shadows into the light: Let's get real about outsourcing." Journal of Management & Organization 17, no. 1 (January 2011): 77–94. http://dx.doi.org/10.1017/s1833367200001723.
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AbstractDespite the continued popularity of outsourcing amongst managers and management researchers alike, signifi cant questions arguably remain as to the adequacy of the typical framing of the outsourcing decision. An extensive review of the literature revealed a skewed, partial and fragmented conceptualisation of the option, further exacerbated by a concerning tendency effectively to rank quantitative outcomes over qualitative outcomes, even ex post. In this article it is argued that a critical analysis of the theoretical frameworks that underlie this body of work suggests a more realistic conceptualisation of outsourcing, both for management researchers and management decision makers.
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Hunter, James D., and Allastair N. Hall. "From the shadows into the light: Let's get real about outsourcing." Journal of Management & Organization 17, no. 1 (January 2011): 77–94. http://dx.doi.org/10.5172/jmo.2011.17.1.77.
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AbstractDespite the continued popularity of outsourcing amongst managers and management researchers alike, signifi cant questions arguably remain as to the adequacy of the typical framing of the outsourcing decision. An extensive review of the literature revealed a skewed, partial and fragmented conceptualisation of the option, further exacerbated by a concerning tendency effectively to rank quantitative outcomes over qualitative outcomes, even ex post. In this article it is argued that a critical analysis of the theoretical frameworks that underlie this body of work suggests a more realistic conceptualisation of outsourcing, both for management researchers and management decision makers.
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Lok, Ka Leung, and David Baldry. "Facilities management outsourcing relationships in the higher education institutes." Facilities 33, no. 13/14 (October 5, 2015): 819–48. http://dx.doi.org/10.1108/f-05-2014-0043.
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Purpose – This paper aims to test the nine corollaries concerning the determinants of outsourcing relationship dimensions, strategic manoeuvres, clients’ and service providers’ evaluation regarding outsourcing category and outsourcing relationship types.The paper has the purpose of reviewing the concept of outsourcing in relation to FM, dealing with service providers’ performance and its effect on clients before providing a comprehensive discussion of outsourcing. Design/methodology/approach – A conceptual approach is adopted, suggesting that a study of outsourcing relationship between clients and service providers from these theoretical perspectives is used to develop corollaries about the relationships between the strategic manoeuvres identified and the different dimensions of outsourcing relationship. The corollaries are examined using non-parametric tests. Findings – The model of the facilities management (FM) outsourcing relationships presented in the paper shows performance of outsourcing services through evaluation of outsourcing categories on current and future FM contracts of clients and service providers. As a template of outsourcing relationships, the model is the context for predicting the important outsourcing categories to the future four FM outsourcing contracts, such as building maintenance, security, cleaning and catering. On prediction of those FM contracts, there is an inclination to the types of in-house and technical expertise on category of FM outsourcing relationship types from clients, whilst there is an equal inclination to the type of in-house outsourcing category from service providers. Originality/value – Management on outsourcing relationships between clients and service providers is now essential for effective outsourcing in FM. This paper provides an intriguing insight into how the effect of outsourcing relationships can be strategically implemented into the performance of service providers.
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Patil, Shrinivas, and Winai Wongsurawat. "Information technology (IT) outsourcing by business process outsourcing/information technology enabled services (BPO/ITES) firms in India." Journal of Enterprise Information Management 28, no. 1 (February 9, 2015): 60–76. http://dx.doi.org/10.1108/jeim-09-2013-0068.
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Purpose – The purpose of this paper is to understand the roles various drivers such as cost, strategy and risk play when business process outsourcing/information technology enabled services (BPO/ITES) firms in India outsource their information technology (IT) functions to third-party vendors. If all key drivers associated with IT outsourcing were understood, and such knowledge of those variables was incorporated into the reasons for outsourcing, there would be a greater probability of a successful outcome. Design/methodology/approach – A “hybrid” (quantitative and qualitative) research methodology was used to gain insight into the IT-outsourcing paradigm by BPO/ITES firms in India. A structured questionnaire related to IT-outsourcing activities conducted from 1999 to 2010 was distributed to nine firms. The resulting data were then analyzed. In addition, two Indian BPO/ITES firms that had outsourced their IT to a third-party vendor to cut cost generously granted in-depth information into their IT-outsourcing paradigm and life cycle. Findings – IT outsourcing is perhaps more complicated than other types of outsourcing. Focussing purely on cost is very risky. Practitioners need to take all three drivers – cost, strategy and risk into consideration. Any degradation of services or responsibilities due to IT outsourcing would mean a very unhappy client or even loss of business. Originality/value – BPO/ITES firms in India tend to focus only on cost reduction from IT outsourcing without taking into consideration other equally important drivers such as strategy and risk. This paper counsels a holistic approach toward IT outsourcing for a successful outcome. In addition, an IT-outsourcing framework and guide is proposed for practitioners.
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Farkhoutdinov, Il'nur Ildusovich, and Aleksei Gennadevich Isavnin. "Economic Assessment of Optimization of Machine-Building Production on the Basis of Restructuring Outsourcing Taking Into Account the Cyclical Nature of Economic Development." International Journal of Financial Research 12, no. 1 (December 25, 2020): 286. http://dx.doi.org/10.5430/ijfr.v12n1p286.
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Nowadays using outsourcing and models of sourcing’s maneuver, becomes as one of the most leading tools for optimizing domestic engineering production. Many entrepreneurs reject outsourcing because they think that outsourcing will incur additional costs. However, they make mistakes in calculating the value of missed opportunities because they spend so much time on hard, energy-intensive work that it would be better to leave that to others. Therefore, outsourcing may be toxic to some businesses, and the same activity can be very successful if done within the organization. Outsourcing simplifies many tasks and is profitable for organizations and companies, but only if the conditions are carefully considered, and security points are observed. Every business, large or small, needs to outsource some of its activities, whether it hires an individual or a team to do their work at the company or do it elsewhere.In this paper, the authors consider the optimization of domestic machine-building enterprises through the use of restructuring production outsourcing. An approach to the economic evaluation of the machine-building production optimization based on the restructuring outsourcing, taking into account the cyclical nature of economic development, is developed.
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Fredriksson, Anna, and Eva Johansson. "Integrating logistics into the outsourcing process." International Journal of Logistics Research and Applications 12, no. 4 (July 13, 2009): 281–98. http://dx.doi.org/10.1080/13675560903076149.
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