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1 – 10 of over 7000Research and studies of successful, collaborative outsourcing relationships have uncovered commonalities that researchers codified into a methodology designed to structure…
Abstract
Purpose
Research and studies of successful, collaborative outsourcing relationships have uncovered commonalities that researchers codified into a methodology designed to structure aligned, innovative and cooperative outsourcing arrangements. This paper aims to describe a new methodology for establishing successful collaborative outsourcing relationships.
Design/methodology/approach
The design is based on seven years of field research into successful strategic outsourcing agreements completed by the authors and additional colleagues.
Findings
Research into successful collaborative outsourcing relationships has uncovered commonalities that researchers have identified as normative rules which, when followed, lead to aligned, innovative and cooperative relationships. This paper identifies five rules and ten elements that together form a flexible framework for implementing an effective outsourcing partnership. This approach is called “vested outsourcing” because the nature of most highly successful relationships is based on a high degree of collaboration and aligned incentives where the buyer and supplier have a vested interest in each other's success.
Originality/value
The conclusions and principles derived from the original research and fieldwork are described in two books (Vested Outsourcing: Five Rules that Will Transform Outsourcing and The Vested Outsourcing Manual). This paper provides a review of the authors' current research, rather than new research findings.
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The purpose of this paper was to consider 52 conceptual frameworks identified during a systematic literature review with the aim of providing insights into various aspects of…
Abstract
Purpose
The purpose of this paper was to consider 52 conceptual frameworks identified during a systematic literature review with the aim of providing insights into various aspects of outsourcing relationships. Many authors propose these frameworks to contribute to our understanding of how outsourcing relationships are conceived, operate and evolve. A meta-analysis of these frameworks was completed.
Design/methodology/approach
The approach consisted of five stages: a systematic, but focused literature review to identify relevant frameworks; a study of the selected frameworks to enable the design of a typology of framework styles, so that frameworks adopting similar styles can be compared and analysed; grouping of the frameworks into families addressing different aspects of relationships as they form, operate and evolve; using the types (from the typology) within these family groups to facilitate a meta-analysis of each group by identifying common or contrasting themes; and deriving overall observations and identifying the most robust frameworks in each group.
Findings
Nine framework types are identified and named as nominal categorisation, matrix, pyramid, dependency, interaction, flowchart, two-dimensional progression, life cycle and stepped. Five logical family groups were identified addressing how relationships form, operate and evolve. These groups cover the scope of outsourcing relationship, the relationship governance, the climate of the relationship, relationship tactics and relationship evolution. Common themes were identified, and overall observations were drawn. Recommendations are also provided on the frameworks which were assessed as being most robust and likely to be of most use to practitioners and researchers.
Research limitations/implications
The study considered a representative sample of frameworks identified during a systematic review of literature relating to outsourcing relationships. However, it cannot be considered fully comprehensive, and frameworks from other sources also exist.
Practical implications
Outsourcing success depends on the establishment and management of a constructive relationship between the client and supplier. Frameworks assist understanding of this important aspect of outsourcing.
Originality/value
This paper provides a reference point for scholars and practitioners who are interested in outsourcing relationships and may value the sources identified and the summaries, comparisons and recommendations provided.
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Malgorzata Sobinska and Leslie Willcocks
The purpose of this paper is to find how mature the Polish commercial production companies are in their information technology (IT) sourcing practices, what they do, the practices…
Abstract
Purpose
The purpose of this paper is to find how mature the Polish commercial production companies are in their information technology (IT) sourcing practices, what they do, the practices that are successful, the challenges experienced and the outcomes.The paper presents and critically evaluates the results of a study of IT outsourcing management processes in selected industrial enterprises operating in Poland. Dynamic business contexts, globalisation and advances in IT make the development of IT sourcing models challenging in both theory and practice. This paper examines the principles and practice of sourcing IT and business processes in Poland, a country much under-represented in the literature. Little research has been conducted on the strategic rationale behind IT sourcing decisions, the resulting challenges and the potential or actual consequences of such decisions. This paper addresses these gaps in the understanding of IT sourcing processes by way of examining the types of sourcing models and solutions among manufacturing companies operating in Poland, and by identifying the most problematic and critical factors in effective IT sourcing collaborations. The outcomes are assessed against findings from the broader empirical outsourcing literature, and lessons are drawn for Polish client firms and those in similar economies.
Design/methodology/approach
A survey methodology of a limited number of organisations in Poland was used. The study was designed to address the process of managing IT sourcing relations in production companies operating in Poland. The main objective of the study was to formulate working hypotheses to be used in further research on the sourcing models used in the IT sphere. Additionally, the study was designed to provide information on: the potential respondent reactions to the research problem, the understanding of the notions and terms used in the survey questionnaire and the evaluation of the research instrument itself.
Findings
Organisations (and their employees) are generally well aware of their IT needs, and that they select quite well providers that suit their particular requirements. In their selection processes, organisations carefully consider not only the providers’ experience and the range of services on offer but also their flexibility in response to the client’s demands, the location and the trust formed in the course of previous cooperation. Communication between the parties typically takes the form of telephone conversations and e-mails. The majority of respondents reported more than one type of problems faced in the course of outsourcing. Problems concentrated in the areas of communication (52 per cent) and organisation (48 per cent), followed by difficulties in enforcing the terms of the contract.
Research limitations/implications
It is a selective sample, focuses only on production companies and does not look at the offshore outsourcing market that has grown up in Poland, but rather what domestic polish organisations do in their sourcing practices.
Practical implications
The organisations still struggle with the organisation and management of relations with their external service providers while getting reasonable results. They have much to learn from the published literature on managing the outsourcing life cycle.
Social implications
There is a need for better inter-organisational cooperation.
Originality/value
Poland is very underrepresented in the outsourcing literature – there are no examples of surveys like this in the English literature.
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Francois Bernard Duhamel, Isis Gutiérrez-Martínez, Sergio Picazo-Vela and Luis Luna-Reyes
Collaborations between public administrations and private sector represent a specific challenge to manage contractual and organizational relationships among partners with…
Abstract
Purpose
Collaborations between public administrations and private sector represent a specific challenge to manage contractual and organizational relationships among partners with different goals, working cultures, norms, rules and processes. Therefore, the main research question of this paper is: What are the antecedents of effective collaboration in public-private IT outsourcing relations? Thus, the purpose of this paper is to identify the determinants of collaborative interface characteristics as scaffolding structures to manage public-private IT outsourcing relations effectively.
Design/methodology/approach
Two cases of public-private IT outsourcing relationships in Mexico were used to compare and contrast the main antecedents of collaborative interface characteristics. Case selection was based on the success in each case, as perceived by the collaborating members involved. A successful case and a less successful case of application development for the provision of public services from two state administrations in Mexico were chosen. Data gathering took place via face-to-face interviews.
Findings
The quality of the organizational interface depends on the interactions between exchange of knowledge and mutual trust, along with the commitment between partners. Trust, commitment and knowledge sharing interacted to enhance interface characteristics that have an impact on public and political values.
Research limitations/implications
This paper used and extended an outsourcing technology enactment model to emphasize the quality of organizational interfaces as a main antecedent for the success of public-private IT outsourcing relations.
Practical implications
Effectively designing work practices and contracts implies the development of flexible contracts, objects and routines to adjust project requirements to fulfill better public-private goals. Such flexible contracts and practices are only possible in a trusting environment where participants shape their mutual understanding of the project.
Originality/value
The paper contributes to the literature on public-private IT outsourcing relationships by offering a theoretical framework on key antecedents and processes of success of these relationships.
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The purpose of this paper is to present a case study on the use of performance-based contracting in the outsourcing of a reliability-centered maintenance program of a Gulf oil…
Abstract
Purpose
The purpose of this paper is to present a case study on the use of performance-based contracting in the outsourcing of a reliability-centered maintenance program of a Gulf oil refinery.
Design/methodology/approach
A case study method is used whereby data are collected through semi-structured interviews, informal discussions with executives from the participant companies, in addition to official documents and secondary materials.
Findings
The case analysis reveals the use of a risk–reward payment scheme and key performance indicators (KPIs) deployed to support the management of the outsourced maintenance function. The financial incentive scheme was clearly designed to motivate the outsourcing contractor to achieve more financial benefits when meeting a defined set of KPIs while also delivering operating cost savings and other qualitative benefits to the outsourcing company. Managing the outsourced function also involved the use of routine budgetary control systems, in addition to other informal control mechanisms such as trust, knowledge sharing, mutual understanding and co-operation between the two collaborative partners.
Practical implications
The evidence presented in the case description and analysis may assist in increasing the understanding of how outsourcing relationships in maintenance business are managed and evaluated. The case findings may also provide the opportunity for further research investigating the use of performance measurement systems and incentive-based schemes in a variety of maintenance contracts.
Originality/value
The case study presents new empirical evidence on the use of performance risk–reward payment schemes in the management of an outsourcing relationship. Findings reported in the study will add to the existing literature on maintenance performance measurement and management practices in outsourcing relationships.
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Vikram Bhakoo, Prakash Singh and Amrik Sohal
The purpose of this paper is to develop an understanding of the nature of collaborative arrangements that partners in Australian hospital supply chains use to manage inventories.
Abstract
Purpose
The purpose of this paper is to develop an understanding of the nature of collaborative arrangements that partners in Australian hospital supply chains use to manage inventories.
Design/methodology/approach
A case study involving a supply chain network of ten healthcare organisations (three pharmaceutical manufacturers, two wholesalers/distributors and five public hospitals) was studied. Data included 40 semi‐structured interviews, site visits and examination of documents.
Findings
This study highlights the existence of a variety of collaborative arrangements amongst supply chain partners such as the “Ward Box” system (a variant of the vender managed inventory system) between wholesalers/distributors and hospitals. The materials management departments were more willing than their pharmacy counterparts to participate in a variety of partial and complete outsourcing arrangements with wholesalers/distributors and other hospitals. Several contingent factors were identified that influenced development of collaborative arrangements.
Research limitations/implications
This study is limited to the Australian healthcare sector. To improve generalisability, this study could be replicated in other industry sectors and countries.
Practical implications
Application of collaborative arrangements between manufacturers and wholesalers/distributors would improve inventory management practices across the supply chains. Also, learning from materials management departments could be transferable to pharmacy departments.
Originality/value
Several contingent variables for the implementation of collaborative inventory management arrangements between healthcare supply chain partners have been identified. Methodologically, data across three echelons in the supply chains (manufacturers, wholesalers/distributors and hospitals) were collected and analysed.
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Describes the various types of outsourcing arrangements used in information systems, and explains some of the theoretical perspectives that can be invoked to explain the behaviour…
Abstract
Describes the various types of outsourcing arrangements used in information systems, and explains some of the theoretical perspectives that can be invoked to explain the behaviour of client, supplier, and intermediary organisations, such as customer consortia. Examines some of the problems of outsourcing in the public sector, and suggests how the theoretical perspectives might illuminate some of the problems which have emerged in the purchasing and licensing of electronic content.
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Ingi Runar Edvardsson and Susanne Durst
This paper aims to review research on outsourcing of knowledge processes to establish the current body of knowledge and, on this basis, to identify gaps in our understanding. This…
Abstract
Purpose
This paper aims to review research on outsourcing of knowledge processes to establish the current body of knowledge and, on this basis, to identify gaps in our understanding. This action will justify further research activities and clarify where no future research is currently needed.
Design/methodology/approach
The study consists of a systematic review of 24 refereed empirical articles on outsourcing of knowledge processes.
Findings
Five themes were identified: outsourcing of knowledge processes, outsourcing and collaborative agreements between knowledge-based firms, factors affecting successful knowledge outsourcing, knowledge management and knowledge outsourcing and other outsourcing issues. There seems to be a lack of understanding concerning knowledge process outsourcing.
Research limitations/implications
This study may not have enabled a complete coverage of all empirical articles in the field of knowledge process outsourcing. Yet, it seems reasonable to assume that the review process covered a large share of studies available.
Originality/value
To the best of the authors’ knowledge, no systematic literature review on this topic has previously been published in academic journals.
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Thomas A. Gavin and C. Michele Matherly
Examines the general issues that need to be considered when planning outsourcing. Also provides a framework that can be used for analysing the costs that bear on the outsourcing…
Abstract
Examines the general issues that need to be considered when planning outsourcing. Also provides a framework that can be used for analysing the costs that bear on the outsourcing decision. Encourages examining the area, function, or process being considered in terms of the connectivities and vulnerabilities that exist between that area and the rest of the organization as well as between the entity considering the outsourcing and the possible providers of that service. The decision should be explored from three perspectives ‐ people, process and technology. Discusses eight broad issues and identifies 20 frequently outsourced activities.
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The purpose of this paper is to describe how seven sourcing models operate along a continuum depending on the complexity of the marketplace and the strategic needs of buyers and…
Abstract
Purpose
The purpose of this paper is to describe how seven sourcing models operate along a continuum depending on the complexity of the marketplace and the strategic needs of buyers and suppliers. Studies of business procurement and sourcing practices reveal that collaborative and holistic approaches will increase efficiencies and value in strategic outsourcing relationships.
Design/methodology/approach
The design is based on research and fieldwork from the University of Tennessee and vetted with the Sourcing Industry Group, the Center for Outsourcing Research and Education and the International Association for Contracts and Commercial Management. This work provided the basis and framework for the 2015 book, Strategic Sourcing in the New Economy: Harnessing the Potential of Sourcing Business Models in Modern Procurement.
Findings
Most organizations operate under conventional transaction-based models that are constrained by a formal, legally oriented, risk-averse and liability-based culture. There is growing awareness that transactional-based approaches do not always give each party the intended, or best, results. University of Tennessee research shows how organizations apply alternative output- and outcome-based approaches for complex contracts. That experience demonstrates that alternative Sourcing Business Models are viable approaches to the conventional transactional methods[1]. As senior leaders see positive results from carefully crafted collaborative agreements, momentum grows for both output- and outcome-based approaches.
Practical implications
Education on sourcing business models.
Originality/value
Collaborative outsourcing.
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