Academic literature on the topic 'Success Factors in Outsourcing'

In this thesis, a public IS outsourcing case in Turkey is examined. The case is selected because of its unique characteristics that differentiate it from the other cases studied in the literature. The aim of this study is to understand the success factors in public IS outsourcing and to reveal which ones were applied in this specific case.

<p>IT outsourcing is a hot topic in today’s demanding environment. Many organizations start to outsource information technology in order to achieve benefits such as cost reduction, improve quality of service, and focus on the core competence. However, IT outsourcing projects are not an easy task to manage and many projects fail even though there exists a lot of research within the area. In order to increase the possibility to achieve project success, today’s literature indicates that trust is an important factor to achieve. This thesis aim is to identify and describe the process of how to achieve trust in IT outsourcing relationships. The methodology is a literature study as its purpose is to cover the aspects of trust and how the literature proposes how to achieve trust in IT outsourcing relationships.</p><p>Relevant literature has been identified, analyzed, and categorized in order to define the thesis concepts and to create a framework based on critical success factors of how to achieve trust in IT outsourcing relationships. The framework can be used as a guiding principle of how organizations can achieve trust in IT outsourcing relationships to increases the possibility to achieve project success. The framework can also raise the awareness that makes it possible to deal with different IT outsourcing situations.</p>

Information Technology Outsourcing (ITO) in terms of the replacement of the in-house production of IT activities by the use of third party suppliers had already started in the 1960s and has increased considerably. For 2013, the Gartner Group expected that the global ITO market would reach a volume of 288 bn US dollars. Until 2017, the market should grow on average about 5.4% yearly. Despite the rich set of experiences companies have already had with ITO, the chances of success are seen as at best 50:50. Currently, the dramatic growth of ITO is accompanied by backsourcing of formerly outsourced IT functions or reports about dissatisfaction and problems with ITO. Scientists put ITO failures or problems down to a lack of modelling of all the possible factors affecting ITO success and demand a specific ITO theory as a basis for better explaining and predicting successes and failures in an IT sourcing context. This thesis takes up this research gap. The aim of this thesis is to develop a novel ITO Model which aids organisations in planning and implementing ITO solutions by guiding them through the ITO process steps of preparation, selection, contract, transition, execution, and post-deal comprising a comprehensive picture of the weighted aspects relevant to ITO success and their interdependencies. In order to achieve this aim, the following objectives were established for this thesis: raising the topical level of scientific knowledge of the last decades about successinfluencing factors in the ITO field based on an extensive literature survey of 48 scientific articles deriving ITO success factors from empirical research work; structuring of this success factor knowledge by the development of two ITO taxonomies (taxonomy of success factors and taxonomy of success factor interdependencies); testing its practical applicability on the basis of 8 real long-running application outsourcing cases in the banking industry; further development of the success factor knowledge by identification of weightings and the temporal relevance of relevant success factors / success factor interdependencies within the ITO process. Design of the novel ITO Model based on the empirical knowledge gained by development of rules for relevant success factors and success factor interdependencies, by arrangement of these rules in temporal order within the ITO process and by assignment of these rules to four levels of environment.

The purpose of this research is to explore project success factors and freelance marketplace characteristics that are critical to the success of software development projects on freelance marketplaces, while identifying important metrics to measure the success of software development projects on freelance marketplaces. This exploratory study is done from the point of view of the software development services buyer. Three methodologies were developed for the purpose of this research. First, a methodology for the definition of the freelance marketplace concept and the delimitation of the field of study was followed. Second, a methodology for sourcing opinions from blogs and self-published articles was created to mine information to complement the scant specialized literature on the subject of freelance marketplace characteristics and freelance marketplace project success factors. Third, a survey methodology was used as the main data collection instrument. The findings suggest that freelance marketplaces play the role of enabler of project success factors. The most important success factors are focused on product quality, project efficiency factors, cost control factors, and qualifications of the buyer. The most important metric to measure the success of software development projects on freelance marketplaces was quality in use.

IT Outsourcing (contracting-out of Information Technology services) has become a pivotal economic trend in recent decades. This study traces the interlacing of IT Outsourcing with Enterprise Resource Planning (ERP) software systems. Little research has considered the reciprocal relations between these two phenomena. This was the gap in knowledge addressed by the research. More specifically, the research investigated: why organisations turn to IT Outsourcing providers to implement and maintain ERP systems and what are the success factors for selective IT Outsourcing within ERP projects in Israel. Field research was conducted in organisations during 2006-2008, employing IT Outsourcing for ERP systems in two stages: Stage One used qualitative data-collection tools: five semi-structured interviews and fifteen open-ended questionnaires. Inductive content and thematic analysis conducted on data from these tools produced themes that formed the basis for a closed-ended questionnaire used in the next stage. Stage Two employed seventy two closed-ended questionnaires. Quantitative data from this questionnaire underwent deductive statistical analysis to test and confirm findings from Stage One. Results indicated that significant differences between ERP package-based centralised cross-organisational systems and the out-dated self-developed legacy IT systems produced different organisational requirements for IT Outsourcing services. Respondents thought it essential to employ IT Outsourcing for ERP projects, noting different motivations for this strategy. Respondents identified four success factor groups for IT Outsourcing in ERP projects, grading the factors according to relative importance. Management commitment and support was the most important success factor group. The research showed that organisations that implement ERP systems regard it as essential to employ the IT Outsourcing services since they provide experienced updated experts. Organisations stress that they need these services to ensure effective, operable systems, understanding that initially there is little cost reduction. Management commitment, wise choice of vendors and intelligent contracting can establish successful vendor-organisation collaboration. Contribution to knowledge is made by offering a better understanding of the unique phenomenon of IT Outsourcing within ERP projects in Israel, motivations to use and success factors

This thesis investigates large private companies in Sweden that have outsourced their information technology (IT). A considerable proportion of IT outsourcing (ITO) is unsuccessful. For IT service buyers, this could cause IT that does not fully work, entailing problems with the network, application, infrastructure and security, with serious consequences such as a loss of customers’ confidence and significantly increased costs. Therefore, the main research goal was to analyse and define ways to improve ITO for buyer organizations. This main research goal was accomplished through three research goals that are the followings: 1) To develop a method for risk assessment in IT outsourcing; 2) To identify the important factors in IT outsourcing relationship; and 3) To identify the success factors in IT outsourcing.                       The research strategies applied in conducting this research were design science research and survey research. To achieve the first research goal, a method was developed for assessing the ITO risks, including support for mitigating these risks. This method could help both researchers and practitioners in estimating the ITO risks and in this way improve ITO. An application based on the developed method was used to facilitate the testing of this method by several ITO decision makers in large companies concerning its usability, correctness and functionality. Moreover, a study was performed to explore ITO decision makers’ acceptance of the developed method and their use of it for assessing the ITO risks.             The second research goal investigated how to improve service buyers’ ITO relationship with their providers. A well-working ITO relationship is a critical determinant of successful ITO and is relevant to the whole ITO life cycle. This research goal was achieved by identifying and analysing the most important factors in ITO relationships, including a prioritized list of those factors that are highly recommended for use in creating and maintaining a good ITO relationship.                       The third research goal examined how to improve ITO by identifying and prioritizing the success factors (SFs) in ITO. This research identified the ITO SFs in large companies and provided a prioritized list of them to be applied in these companies with a description of the value that they could create from implementation during the ITO life cycle. Moreover, the SFs identified in large companies were compared with those identified in medium-sized companies, which could give an indication to the researchers in this field that company size matters in regard to the implementation order of the identified SFs.               In summary, the research presented in this thesis contributes with: 1) a method for assessing the risks of outsourcing IT and, in the case that IT has been outsourced, suggested ways to mitigate them; 2) the important factors that could improve ITO relationships and 3) a prioritized list of success factors that could improve IT outsourcing.<br>Denna avhandling undersöker stora privata företag i Sverige som har outsourcat sin IT verksamhet. Som vi uppmärksammade har en stor del av IT-outsourcingen (ITO) misslyckats. För köparen av IT-tjänsten kan det leda till bristande IT funktionalitet med allvarliga konsekvenser som i värsta fall leder till förlorade kunder och betydande kostnadsökningar. Därför är det övergripande forskningsmålet är att analysera och fastställa hur ITO:n för köparen av IT tjänsten kan förbättras. För att lösa det övergripande forskningsmålet forskningen undersökte: 1) Utvecklingen av en metod för att bedöma riskerna med IT-outsourcing; 2) Identifiering av de viktiga faktorerna inom IT-outsourcingsrelationer; och 3) Identifiering av en lista över framgångsfaktorer i IT-outsourcing. De använda forskningsstrategierna för att genomföra forskningen var ”design science research" och kartläggning. För att uppnå först huvudforskningsmålet, har en metod tagits fram för att bedöma riskerna och vägleda hur man kan minska dem. Den här metoden kan hjälpa både forskare och de som utövar IT-outsourcing med att bedöma ITO-riskerna och på så sätt förbättra sina IT-outsourcing.  En programvara baserad på den metoden har utvecklats för att underlätta testningen av metoden vilket har genomförts med IT beslutsfattare på stora organisationer, beträffande användbarhet, korrekthet och funktionalitet. Dessutom har en studie utförts för att bedöma om programvaran kan accepteras av IT beslutsfattare och få reda på om de skulle använda metoden för att bedöma ITO riskerna. Det andra forskningsmålet har undersökt hur köparna av den outsourcade IT-tjänsten kan förbättra relationen med sina leverantörer. En bra ITO-relation är en avgörande faktor för en framgångsrik ITO och den är viktig för hela livscykeln. Forskningsmålet har uppnåtts genom analys för att hitta de viktigaste faktorerna ITO-relationsfaktorer, som studien rekommenderar för att skapa och underhålla en bra ITO relation. Det tredje forskningsmålet har undersökt hur ITO kan förbättras genom att identifiera och prioritera framgångsfaktorerna i ITO. Studien har identifierat framgångsfaktorerna i stora företag och tagit fram en lista med prioriterade framgångsfaktorer som bör implementeras i de undersökta företagen. Dessutom så har nyttan av dessa framgångsfaktorer beskrivits under ITO livscykeln. Dessutom har de identifierade framgångsfaktorerna från stora företag jämförts med framgångsfaktorerna som har identifierats för medelstora företag. Denna jämförelse ger en indikation till forskarna på det här området att prioriteringen av framgångsfaktorerna är beroende av företagsstorlek. Sammanfattningsvis, den beskrivna forskningen i den här uppsatsen bidrar med: 1) En metod för att bedöma risker och förslag på hur minska dessa risker; 2) En lista med de viktiga faktorerna för att förbättra ITO relationen inom IT-outsourcing och; 3) En prioriterad lista av framgångsfaktorer som kan förbättra IT outsourcing.

The objective of this research is to construct a model of the critical success factors for the effectiveness of Information Systems (IS) outsourcing. &ldquo<br>Lack of in-house expertise&rdquo<br>and &ldquo<br>cost effectiveness&rdquo<br>are the widely accepted major factors of motivation for IS outsourcing. Although various decision models and analytical frameworks have been proposed before, the literature is not abundant on a complete qualitative model. In contrast with the decision models which are executed before an outsourcing engagement (a-priori), an effectiveness model will be an a-posteriori guide which will enable the clients to measure their outsourcing performance and re-evaluate their business and management strategies. This thesis examines the critical success factors for outsourcing effectiveness through qualitative research conducted with multiple case studies for information systems developed for public and private clients. A conceptual model consisting of various hypotheses is constructed and qualitatively evaluated.

Mestrado em Gestão de Sistemas de Informação<br>Com o crescimento da prática do regime do outsourcing à escala mundial e o surgimento de instrumentos para a sua avaliação, as questões que se tornam importantes responder são respeitantes ao grau de eficácia do regime e é neste âmbito que se debruça virando as suas atenções para as organizações moçambicanas. Naturalmente, torna-se também importante identificar e esclarecer os factores que afectam o seu sucesso. O modelo OS (Grover, Cheon e Teng, 1996), será aplicado como o principal instrumento da avaliação, por se ter constatado ao longo da revisão bibliográfica, como instrumento vastamente difundido, consistente e proclamado por vários investigadores como sendo o melhor instrumento para uma avaliação da eficácia do outsourcing no cômputo geral. Os resultados apontam para a prática generalizada de outsourcing selectivo e com maiores benefícios estratégicos ditados pela fraca oferta (local) de recursos humanos e tecnológicos.<br>As outsourcing evolves world wide and new evaluations instruments come-out for outsourcing evaluation, questions to be answered are regarding the level of effectiveness of outsourcing regime. Thus, this study is focused into the mozambican market. It is also identified the key success factors affecting its success. The instrument from Grover, Cheon e Teng (1996), will be the key measure of the evaluation as it was identified during the bibliographic review as widely used instrument, consistent and also powered by many researchers as the best overall effectiveness evaluations instrument. The result reveals a selective outsourcing as the Mozambique outsourcing practiced regime, with more strategic benefits, rather than economic. This may result from the lack of human and technologic resources all over the country.

En l'actual entorn econòmic, les organitzacions busquen constantment noves formes de flexibilitat en el seu esforç per esdevenir competitives. Una de les avingudes cap a la flexibilització de les organitzacions és l'externalització o outsourcing d'alguns processos empresarials, tant si és amb l'objectiu de retallar costos com amb el d'adquirir experiència i saber fer d'organitzacions externes. La funció de recursos humans o alguns dels seus components també han estat subjectes a l'externalització des de fa ja temps (especialment processos de selecció o activitats de formació). No obstant això, la decisió sobre què externalitzar, com, quan, ia qui és una elecció no desproveïda de certs riscos. L'objectiu d'aquesta tesi és revisar els principals conceptes, lògica i reptes a l'externalització de la funció de recursos humans. Un cop revisada la literatura i proposta una conceptualització de l'outsourcing de recursos humans com a procés i identificant les seves diverses fases, el treball empíric de la tesi es dedica a identificar quins factors poden contribuir a l'èxit en tal procés. Es genera un qüestionari que pregunta per casos d'èxit i fracàs de processos d'outsourcing de recursos humans i les circumstàncies que l'envolten. L'anàlisi estadística dels resultats suggereix que no influeixen en l'èxit del procés factors com la funció, l'objectiu i la temporalitat. Per contra, sí que és important tenir en compte, entre altres, factors com la bona comunicació, l'elecció del proveïdor, el suport el departament de RRHH i no prioritzar el preu. Cal destacar que la majoria d'aquests factors són elements sobre els quals les empreses poden incidir quan implementen un procés de ORH i, per tant, la tesi conclou amb una sèrie de recomanacions per a la pràctica empresarial.<br>En el actual entorno económico, las organizaciones buscan constantemente nuevas formas de flexibilidad en su esfuerzo para devenir competitivas. Una de las avenidas hacia la flexibilización de las organizaciones es la externalización o outsourcing de algunos procesos empresariales, tanto si es con el objetivo de recortar costes como con el de adquirir experiencia y know-how de organizaciones externas. La función de recursos humanos o algunos de sus componentes también han estado sujetos a la externalización desde hace ya tiempo (especialmente procesos de selección o actividades de formación). Sin embargo, la decisión sobre qué externalizar, cómo, cuándo, y a quién es una elección no desprovista de ciertos riesgos. El objetivo de esta tesis es revisar los principales conceptos, lógica y retos a la externalización de la función de recursos humanos. Una vez revisada la literatura y propuesta una conceptualización del outsourcing de recursos humanos como proceso e identificando sus diversas fases, el trabajo empírico de la tesis se dedica a identificar qué factores pueden contribuir al éxito en tal proceso. Se genera un cuestionario que pregunta por casos de éxito y fracaso de procesos de outsourcing de recursos humanos y las circunstancias que lo rodean. El análisis estadístico de los resultados sugiere que no influyen en el éxito del proceso factores como la función, el objetivo y la temporalidad. Por el contrario, sí es importante tener en cuenta, entre otros, factores como la buena comunicación, la elección del proveedor, el apoyo el departamento de RRHH y no priorizar el precio. Hay que destacar que la mayoría de estos factores son elementos sobre los cuales las empresas pueden incidir cuando implementan un proceso de ORH y, por tanto, la tesis concluye con una serie de recomendaciones para la práctica empresarial.<br>n the current economic environment, organizations are constantly seeking new forms of flexibility in their efforts to become competitive. One of the avenues towards more flexible organizations is outsourcing or outsourcing of some business processes, whether it is aiming to cut costs and to gain experience and know-how from outside organizations. The human resources function or some of its components have also been subject to outsourcing for some time now (especially selection processes or training). However, the decision on what to outsource, how, when, and to whom election is not without certain risks. The objective of this thesis is to review the main concepts, logic and challenges to outsourcing HR function. After reviewing the literature and proposed a conceptualization of human resources outsourcing process and identifying its various phases, the empirical work of the thesis is dedicated to identify what factors may contribute to success in this process. A questionnaire asking about cases of success and failure of processes of human resources outsourcing and the circumstances surrounding it generates. Statistical analysis of the results suggests that not influence the success of factors such as the function, purpose or temporality. On the contrary, it is important to consider, among others, factors such as good communication, the choice of supplier, supporting the HR department and not prioritize the price. It notes that most of these factors are elements on which companies can influence when implementing a process of ORH and therefore, the thesis concludes with a series of recommendations for business practice