Littérature scientifique sur le sujet « Offshore outsourcing. Contracting out. Information technology »

AbstractThe growing trend towards IT outsourcing within the United Kingdom (UK) public sector is analysed. Factors influencing the degree of success experienced in a range of IT outsourcing deals are detailed, and then used as a framework for analysing and discussing two case histories — of selective and large-scale IT outsourcing — drawn from different parts of the public sector. Both examples demonstrate how distinctive public sector contexts influence the direction and degree of outsourcing. At the same time, they highlight a range of managerial and organisational issues raised by moves towards contractual, core competence forms of organising. Selective outsourcing is revealed as effective provided key decisions and actions are taken. The large-scale outsourcing case raises a number of critical issues not just for how it can be conducted in public sector contexts, but also about the efficacy of such arrangements in terms of cost savings, possible over-dependence on a few suppliers, and ability to respond flexibly to changing political requirements and legislation.

AbstractThe growing trend towards IT outsourcing within the United Kingdom (UK) public sector is analysed. Factors influencing the degree of success experienced in a range of IT outsourcing deals are detailed, and then used as a framework for analysing and discussing two case histories — of selective and large-scale IT outsourcing — drawn from different parts of the public sector. Both examples demonstrate how distinctive public sector contexts influence the direction and degree of outsourcing. At the same time, they highlight a range of managerial and organisational issues raised by moves towards contractual, core competence forms of organising. Selective outsourcing is revealed as effective provided key decisions and actions are taken. The large-scale outsourcing case raises a number of critical issues not just for how it can be conducted in public sector contexts, but also about the efficacy of such arrangements in terms of cost savings, possible over-dependence on a few suppliers, and ability to respond flexibly to changing political requirements and legislation.

<span>Outsourcing is the contracting out of all or part of a companys information systems functions to outside parties. This research provides preliminary findings on the perceptions of IS (Information Systems) professionals on outsourcing. The findings of this study indicate that in order to effectively deal with the human aspects of outsourcing, management must understand what perceptions exist within the employee ranks and develop a plan which addresses employee needs and perceptions. Such a management action plan is presented in this paper.</span>

Various important benefits can be achieved through the successful management of offshore outsourcing. Numerous studies exist on outsourcing in general, yet the vast majority of extant literature on offshore outsourcing has dealt with information technology (IT) outsourcing from the client's perspective. Several frameworks, focusing on guiding information systems managers in relation to IT outsourcing, have been developed. However, none of these frameworks attempted to provide a holistic guideline to manage the entire process of offshore outsourcing of software production. There is a significant lack of studies dealing with the management of offshore outsourcing of software production from both the vendor's and client's perspectives. Thus, there is a great need to study such a multifaceted and complex phenomenon more deeply for both scenarios to find out the best practices for managing the unified process. In this study, we utilize the conceptual framework of The ICT-supported Unified Process Model of Offshore Software Production Outsourcing as our research model. We then validate this model by reviewing the vast extant literature, and by conducting multiple case studies from both the vendor's and client's viewpoints, where professionals with extensive experience in managing offshore outsourcing of software production are interviewed. The implications of the findings are discussed for both practical and research purposes.

The offshore outsourcing of software-production services to places outside of the established networks in well-developed core economies is a dynamic and topical aspect of contemporary reorganizations in the software-development industries. Software production and related information technology services are outsourced to firms offshore or, more specifically, to places where labor skills appropriate to these industries are available at lower costs. Notable offshore destinations include: India, Russia, Ireland, Israel, Romania, and Ukraine, among several others. The offshore outsourcing of software production involves complex introductions, reorganizations, and compositions of production chains and management structures in the continuing negotiation of how relations and work processes will be governed across spaces. The author documents the roles of certification—ISO 9000 and CMM—as new governmental forms that shape understandings, perceptions, and strategies for becoming recognized within the offshore. Drawing on field research with over twenty firms in St Petersburg, Russia, the author proposes that certification is an emergent form of governance that embodies specific processes of globalization.

Firms from developed countries are increasingly offshore outsourcing services to developing countries to have cost as well competitive advantages. Although this is a growing practice, there has been limited empirical attention in understanding the outsourcing phenomenon, particularly from the perspective of service provider firms that execute important business processes for their overseas clients. Despite growing trends to outsource, only a few service provider firms report success. This puts the service provider firms under increasing pressure to add value and improve quality of relationship. They have to depend not only on tangible factors but some intangible factors also play an important role in their performance. In this paper, the authors try to find out factors that influence performance of service provider firms. Multiple regressions using four indicators of firm performance are carried out to see the influence of certain factors on information technology enabled service (ITES) firms’ performance.

The objective of this work was to point out risks, laws, solutions, and strategies for the protection of Intellectual Property in Global Software Development in BRICS and to identify the bottlenecks of this service, with focus in this service in Brazil. The work was carried out in three stages: (a) a literature review was systematized on Global Software Development Offshore Outsourcing (DGSOO); (b) evaluation of legislation of personal data and software protection; (c) survey with specialists of the Information Technology companies in Brazil. Companies that operate offering this service are usually located in different countries with different law and procedures, and this makes the service of risk for intellectual property rights. The group BRICS is involved in this type of service. However, the challenge for this type of service is to maintain gains without losing the intellectual property rights protection. Due to the ubiquitous nature of software in today's business environment, a DGSOO project needs to have its intellectual property protected, so that the risks of failure are minimized, and the benefits achieved. The greatest occurrences were found for the capacity to develop DGSOO projects and contracts, evidenced by the percentage of contracts finalized with delivery. Most contracts cover intellectual property clauses. The projects are mostly contracted in the software analysis stage and with confidential information, and yet 26.3% of contracts have problems with 1 to 10 projects per year; 5.3% have problems in 11 to 50 projects per year.

In an increasingly globalised world, changes in organisations have also affected innovation processes. In the Information Technology (IT) domain, corporations are adopting outsourcing ad offshoring models for innovation, each time more carefully. The benefits of the combination of both practices, which demonstrate a decrease in corporate costs, indicate an incentive for the adoption of such practices as corporate strategies. In such a scenario, a two-sided challenge presents itself. In the first place, the companies contracting must establish selection measures and strategies for control of their suppliers. Secondly, the business offering outsourcing services must adopt appropriate measures to develop themselves as reliable partners in these types of relationships, a crucial aspect for both parties. The current work presents SemOutQuote, a semantics-based environment for the selection of stable partners for trustworthy innovation processes. The fusion of the capacities of interconnection and communication provided by the internet with the functionalities of the use of semantics represent a novel approach to the management of innovation in organisations

Thesis (MBA)--Stellenbosch University, 2003.
ENGLISH ABSTRACT: The study project examines the concept of information technology (IT) outsourcing to external service providers. It is a relatively new concept in the South African scenario and there are many risks associated with the process that can cause a company to loose large amounts of money if outsourcing is not done right. The study project will aim to examine the most important aspects regarding IT outsourcing in order to reduce the risks associated with the process. The definition of IT outsourcing is the practice of transferring an organisation's computer centre operations, telecommunications networks, or applications development to external vendors of these services. There are different variations of outsourcing applicable to IT, for example: contracting out, outsourcing, in sourcing and co-sourcing. Companies have different reasons for outsourcing and the risks associated with the process have to be taken into account when embarking on an outsourcing initiative. With IT outsourcing there are different services that can be outsourced, for example: mainframe services, desktop computer services, security services and different application services. The decision to outsource a specific area of IT is a strategic issue and the risks, costs, and selection of the service provider are all very important factors to take into account. One of the main factors that any company should take into account when embarking on a big initiative is of course costs. The aim is the reduction of costs of the specific outsourced area. Therefore the necessary measures need to be in place to measure costs before and after the outsourcing process. It could happen that the outsourcing process do not provide the reduced cost benefits envisaged initially. This could be due to hidden costs that were not taken into account when the outsourcing initiative was planned. Normally the outsourcing process is driven by a structured project and numerous important factors need to be taken into account when managing the whole process. The factors include: the vendor evaluation process, setup of the service level agreement, the request for proposal, relationship with the supplier, communication of the whole process inside the company, the contract between the two parties, and the transition period with the measuring of results thereafter. The current IT skills shortage in South Africa is causing companies to rethink their IT strategies and make use of external service providers to supply them with the necessary skills to get the job done. The research illustrates this fact that IT consulting has one of the highest adoption rates currently and with regard to the future. Full blown outsourcing is still a relatively new concept in South Africa and companies will only adopt the concept as soon as it has proved to be successful and cost effective. As mentioned it is important that a structured methodology should be used to drive an outsourcing process. It is important that the approach is structured around proven project management principles with the correct measures in place to support and sustain the whole process. Outsourcing of IT services is a strategic decision that a company must take and the risks associated with the process mean that it must be planned and executed very carefully. Outsourcing has various risks associated with it like the appointment of the wrong service provider. However, the outsourcing process can also have its merits and the most important of these are most probably lower costs, new IT skills, and better service. The shortage of IT skills in South Africa makes the idea of outsourcing more and more attractive because of the fact that companies can now "buy" the skills without having to commit to long term permanent employment contracts for permanent staff.
AFRIKAANSE OPSOMMING: Die navorsingsverslag handel oor die konsep van uitkontraktering van inligtingstegnologie(IT) dienste aan eksterne diensverskaffers. Aangesien dit 'n relatiewe nuwe tendens in Suid Afrika se IT bedryf is, en die risiko bestaan dat 'n maatskappy groot geldelike verliese kan ly indien dit nie reg aangepak word nie, word daar gepoog om na die belangrikste aspekte van uitkontraktering te kyk om die risikos daaraan verbonde so laag as moontlik te hou. Die definisie van IT uitkontraktering is die oordrag van 'n organisasie se rekenaar sentrum operasies, telekommunikasie netwerk, of toepassing ontwikkeling na 'n eksterne verskaffer van hierdie dienste. Daar is verskillende variasies van uitkontraktering van toepassing op IT soos byvoorbeeld: uitkontraktering, inkontraktering, en gesamentlike kontraktering. Maatskappye het verskillende redes om 'n diens uit te kontrakteer en die risikos verbonde aan die proses moet sorgvuldig in gedagte gehou word wanneer die uitkontrakteringsproses aangepak word. Met IT uitkontraktering is daar verskillende dienste wat uitgekontrakteer kan word soos byvoorbeeld: hoofraam dienste, persoonlike rekenaar dienste, sekuriteitsdienste en verskeie rekenaar applikasie dienste. Die besluit om 'n spesifieke area van IT uit te kontrakteer is 'n strategiese kwessie vir die maatskappy en die risikos, kostes en keuse van eksterne diensverskaffer is almal baie belangrike faktore wat in gedagte gehou moet word. Een van die vernaamste faktore wat enige maatskappy in ag behoort te neem wanneer 'n groot inisiatief aangepak word, is natuurlik kostes. Die doel van uitkontraktering is om die kostes van die spesifieke area te verlaag. Daarom moet die nodige maatreëls in plek wees om die kostes vooraf en na die uitkontrakteringsproses te meet. Die uitkontraktering inisiatief kan die maatskappy egter baie duur te staan kom en glad nie die koste voordele bied wat aanvanklik beplan is nie. Dit kan wees as gevolg van verskuilde kostes wat nie met die beplanning van die proses in ag geneem is nie. Gewoonlik word die uitkontrakteringsproses gedryf deur 'n gestruktureerde projek en verskeie belangrike faktore moet in ag geneem word vir die hele proses. Die faktore sluit in: die evaluasieproses om die regte diensverskaffer aan te stel, die opstel van die regte dokumentasie in terme van die diensvoorstel voorlegging, verhouding met die diensverskaffer, die opstel van die diensvlak ooreenkoms, kommunikasie oor die hele proses binne die maatskappy, die kontrak tussen die twee partye, oorgangstadium en die meting van voordele daarna. Die huidige tekort aan IT vaardighede in Suid Afrika veroorsaak dat maatskappye hul IT strategie moet herdink en die opsie van eksterna diensverskaffers wat die nodige vaardighede kan verskaf, oorweeg word. Die studie illustreer hierdie feit dat IT konsultasie een van die hoogste vlakke van ingebruikneming tans en vir die toekoms het. Volledige IT funksie uitkontraktering is nog 'n relatiewe nuwe konsep in Suid Afrika en maatskappye sal slegs die idee aanneem sodra uitkontraktering as suksesvol en koste effektief bewys is. Soos reeds genoem is dit belangrik dat 'n gestruktureerde metodologie gebruik word om 'n uitkontrakteringsinisiatief te dryf. Dit is belangrik dat die aanslag geskoei is rondom bewese projekbestuursbeginsels en dat die regte maatreëls getref is om die proses te ondersteun. Uitkontraktering van IT dienste is 'n strategiese besluit wat 'n maatskappy moet neem. Die risikos daaraan verbonde veroorsaak dat die beplanning en aanpak van die proses baie deeglik en noukeurig gedoen moet word. Uitkontraktering het verskeie risikos soos om die verkeerde eksterne diensverskaffer te kies, maar kan ook voordelig vir die maatskappy wees en die grootste voordele wat 'n maatskappy kan verwag is verlaagde kostes en nuwe IT vaardighede. Die probleem van 'n tekort aan goed opgeleide IT personeel in Suid Afrika maak die idee van uitkontraktering al meer aanlokliker omdat dit 'n goeie manier is om goeie vaardighede in te "koop".

Thesis (MBA)--Stellenbosch University, 2010.
Purpose: The aim of this research is to establish an IT outsourcing framework to enable SITA to consider key IT outsourcing elements to provide the required IT outsourcing or similar services to its customers to better fulfil its mandate as outlined in the SITA Act and other related legislation. Design/methodology/approach: The information gathered from various literature sources was analysed, evaluated and assessed to determine trends, lessons learnt and pitfalls of IT outsourcing, and IT mergers and acquisitions to develop an IT outsourcing framework and approach. Findings: The IT outsourcing framework for SITA consists of customer value drivers (motivating factors), governance model, engagement and supplier management model, and business model as the key IT outsourcing elements that SITA must consider to successfully provide the required IT outsourcing or similar services to its customers to improve its credibility. Research limitations/implications: To extend this research, more work is necessary to assess each element of the framework to determine specific actions that must be taken to leverage on economies of scale, improve productivity and IT capability within Government departments. Practical implications: This framework is intended to provide SITA with guidelines and an approach that may be used to successfully respond to the customers requests respond to the IT operations of its customers or to collaborate with the customer in providing its IT outsourcing services. Originality/value: This research will contribute towards establishing the best practices for agencies like SITA to successfully provide IT outsourcing services to Government.

Thesis (MPhil)--Stellenbosch University, 2013.
ENGLISH ABSTRACT: Given the ubiquity of information systems and their importance for the functioning of organisations; understanding information systems and their impact on organisations has become critical for organisational success. The ability to effectively use information systems plays an increasing role in the success of organisations. There are many facets to understanding information systems in organisations, this thesis will assess the relationship between outsourcing an information system, and the strategic processes which lead to and are impacted by the outsourcing decision. The aim of this thesis is to deepen the understanding of decision making in the Information System Outsourcing literature by reflecting on the state of the literature from a research point of view. This thesis therefore undertakes a meta-theoretic review of the Information System Outsourcing literature, using journal articles, to get a general picture of the literature which will then be assessed in terms of the breadth of decision making perspectives which have been researched and the depth to which each perspective has been explored. First, the extent to which the development of the field of information system outsourcing resembles the development of the Information System Theory in general will be determined. This will be done by examining the history and development of the Information System Theory field, and examining the consequences of the fields’ rapid development for the legitimacy of the field. Next, criticisms which have been raised against the Information System Outsourcing literature will be identified and discussed, the primary criticism being the charge that the Information System Outsourcing field is broad in scope but shallow in its depth of understanding of decision making in the outsourcing processes. These criticisms, which are shared with the field of Information System Theory, are argued to arise from the history of rapid development of Information System Outsourcing. The potential consequences of these criticisms for Information System Outsourcing practitioners and researchers will also be discussed in order to establish the importance of evaluating the theme of Information System Outsourcing. Thirdly, a framework with which to test the criticism against the Information System Outsourcing literature will be developed. This framework will combine insights from decision theory with those of organisation theory. Finally; the framework will be used to analyse the Information System Outsourcing literature in order to verify or disprove the allegation of a broad but shallow understanding of decision making in Information System Outsourcing. This allegation will be addressed primarily through an analysis of the information system outsourcing literature in order to evaluate its depth. The analysis shows that the literature on Information System Outsourcing, whilst showing positive development, is not yet mature. The danger of the theme of Information System Outsourcing falling into an identity crisis like that faced by its parent field of Information Systems Theory still exists. The analysis also shows the areas in which the literature must develop in order to avoid an identity crisis. On meta-theoretical level, the value of returning to fundamental issues in Information Systems Outsourcing is shown through the use of decision theory and organisation theory.
AFRIKAANSE OPSOMMING: Gegewe die alomteenwoordigheid van inligtingstelsels en hul belang vir die funksionering van organisasies, het insig in inligtingstelsels en hul impak op organisasies van kritieke belang geword vir organisatoriese sukses. Die vermoë om inligtingstelsels effektief te gebruik, speel derhalwe ’n toenemende rol in die sukses van organisasies. Daar is egter baie dimensies van inligtingstelsels in organisasies. Hierdie tesis assesseer die verhouding tussen die uitkontraktering van 'n inligtingstelsel en die strategiese prosesse wat lei tot, en wat beïnvloed word deur, die besluit van die uitkontraktering. Die doel van hierdie tesis is om insig in die veld van inligtingstelseluitkontraktering te verdiep deur besinning oor die toestand van die veld vanuit 'n navorsing-oogpunt. Hierdie tesis onderneem dus 'n meta-teoretiese oorsig van die veld van Inligtingstelseluitkontraktering deur gebruik te maak van joernaalartikels. Die doel is om daarmee ’n algemene beeld te kry van die literatuur. Die literatuur word dan beoordeel in terme van die omvang van die onderwerpe wat nagevors is en die diepte waarop elke onderwerp ondersoek is. Eerstens word die mate van ooreenstemming tussen die ontwikkeling van die gebied van die Inligtingstelseluitkontraktering en die van algemene Inligtingsisteem Teorie bepaal. Dit sal gedoen word deur die geskiedenis en ontwikkeling van die Inligtingsisteem Teorie veld te ondersoek. Daarmee saam word konsekwensies van die gebied se snelle ontwikkeling vir die legitimiteit van die veld, ondersoek. Hierna word kritiek wat geopper is op die veld van Inligtingstelseluitkontraktering geïdentifiseer en bespreek. Die belangrikste kritiek is die klag dat die Inligtingstelseluitkontraktering veld wyd in omvang, maar vlak in sy diepte van begrip is. Dit word aangevoer dat hierdie kritiek, wat ook geld vir die veld van Inligtingsisteemteorie, die resultaat is van die geskiedenis van die snelle ontwikkeling van die gebied van Inligtingsisteemuitkontraktering. Die moontlike gevolge van hierdie kritiek vir praktisyns en navorsers in Inligtingsisteemuitkontraktering sal ook bespreek word ten einde die belang van die volgehoue evaluasie van die gebied van Inligtingsisteemuitkontraktering te verduidelik. Derdens word 'n raamwerk ontwikkel waarmee die kritiek teen die Inligtingsisteemuitkontraktering veld getoets kan word. Hierdie raamwerk kombineer insigte uit besluitnemingteorie met dié van organisasieteorie. Ten slotte sal die raamwerk gebruik word om die Inligtingsisteemuitkontraktering literatuur te ontleed ten einde die bewering van die breë maar vlak karakter daarvan te verifieer of te weerlê. Hierdie bewering sal hoofsaaklik deur middel van 'n analise van die Inligtingsisteemuitkontraktering literatuur aangespreek word ten einde die diepte daarvan te evalueer. Die ontleding van die Inligtingsisteemuitkontraktering veld toon positiewe ontwikkeling, ofskoon nie volwassenheid nie. Die gevaar dat die veld in 'n identiteitskrisis val, soos dié van die breër veld van Informasiesisteemteorie, bestaan steeds. Die analise toon ook die gebiede aan waarin die veld moet ontwikkel ten einde 'n identiteitskrisis te vermy. Op meta-teoretiese vlak word die waarde van ʼn terugkeer na fundamentele kwessies in Inligtingsisteemuitkontraktering getoon deur die gebruik van die besluitnemingsteorie en organisasieteorie.

Thesis (Ph.D.)--Case Western Reserve University, 2009
Department of Information Systems Weatherhead School of Management Includes abstract Includes bibliographical references Available online via the OhioLINK ETD Center

M.Comm.
Changes occur rapidly in the Information Technology (IT) environment. It can be very costly to keep up with these rapid changes and at the same time specialist IT skills are hard to come by. Companies have to re-strategize to maintain their competitive advantages. This strategic business concept suggests that management must focus on specialisation, expertise and excellence. In an increasingly competitive and technological advanced world, business focus has shifted from simply minimising costs to maximising revenue. Companies are now focussing on their core competencies and are sourcing their non-core competencies to external providers (vendors). By distancing themselves from these non-core competencies, companies can focus their energy on areas where they have a competitive advantage. Companies enter into outsourcing arrangement's because they believe a vendor is better equipped to perform their IT functions. Outsourcing has become one of the most powerful, organisation-shaping management tools. For the customer outsourcing involves a proper definition of requirements, a detailed analysis and evaluation of potential vendors, developing the pricing structure and managing the outsourcing arrangement. The vendor needs to deliver a service according to specified service levels to which penalties and rewards are tied. An interdependency exists between the customer and the vendor. Change in the one affects the other. One of the key components for a successful outsourcing arrangement is that a company must never outsource the management of their Information Technology processes.

M.Comm. (Computer Auditing)
It is undeniable that over the last couple of years information technology outsourcing has witnessed considerable success and growth in South Africa and the world at large. However, there have been a number of IT outsourcing failures as evidenced by the substantial number of organizations that outsourced their IT systems and then moved them back in-house, or outsourced to another service provider. This is proof that some of the practices inherent in IT outsourcing are flawed. In order to find out why IT outsourcing was failing in South Africa, the study investigated the current practices in IT outsourcing against the best practices. A comprehensive literature study on IT outsourcing best practices and an empirical study on outsourcing organizations employing the services of top IT outsourcing service providers in South Africa was done. The research study revealed strong evidence that organizations are experimenting with different types of IT outsourcing that consequently have different benefits and risks. The empirical findings also proved that there was no ‘one size fits all’ when it came to the reasons for justifying outsourcing IT by organizations. It was also clear that no organization would openly admit to having hidden agendas that informed why and how they outsourced their IT. The study also found strong evidence of critical success factors that are significant and are embraced by IT outsourcing organizations. Also revealed, there were control considerations in IT outsourcing that showed strong evidence of applicable risks and the governance mechanisms employed.

This thesis investigates success factors, risks and trade offs in Information Technology (IT) outsourcing arrangements, and also examines the impact of certain recommended practices on outsourcing success.
Four research components contribute to the investigation: 1) a critical review of ten years' literature on IT outsourcing, paying particular attention to the evidence for success rates and the impact of practices on IT outsourcing success; 2) statistical analysis of a survey of government and non-government organisations (n = 240) taken from the largest 1000 organisations in Australia; 3) a detailed case study into the Australian Federal Government's "Whole of Government IT Infrastructure Outsourcing Initiative" and 4) qualitative analysis of 16 focus groups involving vendor and purchaser informants.
Using confirmatory factor analysis on the survey data, the study validated seven dimensions of IT outsourcing success proposed in the literature. Only two of these factors had been rated positively by most survey respondents, and only a minority of respondents had rated the other five success dimensions positively. Further statistical investigations looked at the relationship between various recommended practices in IT outsourcing and certain success measures, and at relationships between success measures. Particular attention was paid to the notion of selective outsourcing, a notion that has received much attention in the literature and that is explored further in the case study of the Federal Government initiative. The focus group analysis enabled the teasing out of other factors, not easily identified in the other research.
Drawing on all four research components, the thesis proposes that "information impactedness" associated with post-Internet technologies and skills shortages, and unacknowledged inherent trade-offs, contribute to generally poor risks and returns for IT outsourcing. The thesis concludes with recommendations for decision-makers.

In an attempt to influence their pace of development, developing countries around the world try and influence the rate of investment (especially foreign private investments) in their economy. These countries attempt to influence investor decisions by matching and changing their portfolio with that of foreign investors’ needs. However, to make the country portfolio impressive, a country requires massive investment in infrastructure and other portfolio variables which brings countries at an impasse. This chapter discusses the viability of increasing income as a way out. This leads to another important issue as to how to increase revenue of a country with its limited portfolio of strengths. Recent developments in information technology and the Internet have led to a simple solution to this - offshore outsourcing. Outsourcing as a strategy has been around for many years. Traditionally, companies used to outsource their activities to independent suppliers who were best, but the choice was made from the suppliers located in the vicinity of the outsourcing company for easier coordination and control of the activities of the partner. However, due to developments in e-commerce, distance has become a relative term. Exchange of information in a fraction of a minute, irrespective of physical distance, has made it possible for companies to widen their horizons and look for independent suppliers in different nations — offshore outsourcing.

Offshore outsourcing basically describes the practice of contracting to outside vendors in another country, especially in cases where the client company has no direct ownership. This operational strategy of low-cost, global expansion, and increased capability of vendors in India, China, the Philippines, South Korea, has opened great number of avenues of traditional organizational functions of IT. Such functions as software development, call centers, and accounting are typically offshored. Since the late 1990s, offshore outsourcing has included more sophisticated finance and accounting functions, beyond that of simple data input and transactions. Offshore finance and accounting outsourcing is especially becoming an attractive option for many companies. The obvious benefits are gaining access to scarce and valuable skills, cutting costs, and domestic and global achieving competitiveness. However, there are risks as well. A relatively balanced approach of benefits and risks are discussed in this chapter.

The practice of information systems/information technology (IS/IT) outsourcing is a major issue which has received much attention, as shown by the extensive literature on the topic. However, most works on outsourcing have focused on theoretical topics, and there are but a few empirical, quantitative studies. This chapter presents an empirical study of IS/IT outsourcing in Spain, which has been conducted along the lines of prior research carried out in different countries, and which focuses on the types, functions and targets of outsourcing contracts. We also attempt to examine the influence that this practice may have on the organizations’ management structure. A survey carried out on 530 Spanish firms has shown that 50% of Spanish large firms have outsourced part of their IS/IT, whereas outsourcing is practiced by 20% of medium-sized enterprises. Finally, it has been observed that the most frequently outsourced activities in Spain are hosting and Internet-related services.

The practice of information systems/information technology (IS/IT) outsourcing is a major issue which has received much attention, as shown by the extensive literature on the topic. However, most works on outsourcing have focused on theoretical topics, and there are but a few empirical, quantitative studies. This chapter presents an empirical study of IS/IT outsourcing in Spain, which has been conducted along the lines of prior research carried out in different countries, and which focuses on the types, functions and targets of outsourcing contracts. We also attempt to examine the influence that this practice may have on the organizations’ management structure. A survey carried out on 530 Spanish firms has shown that 50% of Spanish large firms have outsourced part of their IS/IT, whereas outsourcing is practiced by 20% of medium-sized enterprises. Finally, it has been observed that the most frequently outsourced activities in Spain are hosting and Internet-related services.

For the past 15 years, governments in the developed, Western world have been contracting out, or outsourcing, services as a key part of publicsector reforms. Outsourcing has been argued to lead to cost savings, improved discipline, better services, access to scarce skills, and the capacity for managers to focus more time on the core business of their organizations (Domberger, 1998). Government outsourcing initiatives have encompassed a range of services, but given the large sums of money invested in IT assets, the outsourcing of IT services (IT outsourcing, or ITO) has been a major initiative for many agencies. Lacity and Willcocks (1998, p. 3) defined ITO as “handing over to a third party [the] management of IS/IT assets, resources and/or activities for required results.” For public-sector outsourcing, this handover is usually made by way of a competitive tender. Case studies have reported ITO successes and failures (e.g., Currie & Willcocks, 1998; Rouse & Corbitt, 2003; Willcocks & Currie, 1997; Lacity and Willcocks, 2001; Willcocks & Kern, 1998), but much of the evidence presented to public-sector decision makers to justify this reform is anecdotal and unsystematic, and when investigated in depth, does not necessarily support widespread conclusions.

With the evolution of information technology, firms offshore outsource services to developing and low service cost countries to have cost as well competitive advantages. This is a growing practice, but there has been limited empirical attention in understanding the outsourcing phenomenon, particularly from the perspective of service provider firms that execute important business processes for their overseas clients. This shows the need to study the factors that play a significant role in the growing trend to outsource and why only a few service provider firms report success. In this chapter, the authors try to find factors that influence performance of service provider firms. Multiple regressions using four indicators of firm performance are carried out to see the influence of certain factors on Information Technology Enabled Service (ITES) firms’ performance.