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Article
Publication date: 1 February 1996

Matthew K.O. Lee

Presents a practical and systematic overview of some key IT outsourcing contractual issues, exploring and highlighting management implications where appropriate. Discusses…

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4965

Abstract

Presents a practical and systematic overview of some key IT outsourcing contractual issues, exploring and highlighting management implications where appropriate. Discusses issues such as service level, transfer of assets, staffing, pricing and payment, warranty and liability, dispute resolution mechanism, termination, intellectual property matters, and information security. Gives practical advice on pre‐contractual negotiation and post‐contractual management. By discussing these issues systematically from a management and practical perspective, contributes to bridging the gap between theory and practice and seeks to offer useful information to management considering IT outsourcing.

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Industrial Management & Data Systems, vol. 96 no. 1
Type: Research Article
ISSN: 0263-5577

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Article
Publication date: 1 December 2000

Chris Lonsdale and Andrew Cox

Notes that outsourcing is just one of the means by which the boundary of the firm can be adjusted. Considers various other means such as conglomeration and horizontal and…

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9651

Abstract

Notes that outsourcing is just one of the means by which the boundary of the firm can be adjusted. Considers various other means such as conglomeration and horizontal and vertical integration. Focuses on outsourcing and its place in this bigger picture and discusses the history of outsourcing. Outlines concerns for managers and gives case examples from Rank Zerox and BP.

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Industrial Management & Data Systems, vol. 100 no. 9
Type: Research Article
ISSN: 0263-5577

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Article
Publication date: 7 November 2008

Ravi Foogooa

The purpose of this paper is to study the different facets of the strategic perspective of information systems (IS) outsourcing, compare strategic IS outsourcing with…

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4129

Abstract

Purpose

The purpose of this paper is to study the different facets of the strategic perspective of information systems (IS) outsourcing, compare strategic IS outsourcing with traditional IS outsourcing and identify research opportunities.

Design/methodology/approach

This paper is based primarily on a review of the literature.

Findings

IS outsourcing is now an accepted practice and the market is growing regularly. The initial hype surrounding IS outsourcing has died out and there is now a more rational approach towards outsourcing with an increasing emphasis for a strategic approach towards IS outsourcing rather than just a cost‐cutting motivation.

Originality/value

The paper clarifies the definitions of IS outsourcing and strategy, taking into consideration the evolution of the definitions before comparing strategic IS outsourcing with traditional IS outsourcing. The paper is concluded with identification of future research opportunities in the field of strategic IS outsourcing.

Details

Business Process Management Journal, vol. 14 no. 6
Type: Research Article
ISSN: 1463-7154

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Article
Publication date: 20 February 2009

Mary C. Lacity and Joseph W. Rottman

While strategic outsourcing decisions are crafted by senior executives, they are executed by middle managers and staff who may not share the vision or enthusiasm of their…

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2379

Abstract

Purpose

While strategic outsourcing decisions are crafted by senior executives, they are executed by middle managers and staff who may not share the vision or enthusiasm of their senior leadership team. The purpose of this paper is to provide a deep understanding of the effects of outsourcing on one of those stakeholder groups – the client project managers – responsible for the implementation of outsourcing strategies, and to identify practices to better empower and enable them.

Design/methodology/approach

Interviews with 67 client project managers in 25 organizations responsible for integrating suppliers into project teams.

Findings

Client project managers report 27 effects of outsourcing on their roles, including six positive effects and 21 negative effects.

Practical implications

Senior executives who implemented the following practices had more success with their outsourcing decisions: provide enough resources to implement the sourcing strategy, be willing to change internal work practices, build social capital with key supplier executives and seek independent assessment of sourcing strategy effectiveness.

Originality/value

The paper presents an original framework to categorize the effects of outsourcing on client project managers. The framework addresses six areas of concern: organizational support, project planning, knowledge transfer, process standards, managing work and managing people. The paper identifies four practices senior executives use to align and empower their employees to deliver the expected business benefits from strategic outsourcing decisions.

Details

Strategic Outsourcing: An International Journal, vol. 2 no. 1
Type: Research Article
ISSN: 1753-8297

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Article
Publication date: 12 February 2018

Payam Hanafizadeh and Ahad Zare Ravasan

A multitude of factors influence the information technology outsourcing (ITO) decision. Organizations must systematically evaluate these factors prior to making the ITO…

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1124

Abstract

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.

Details

Journal of Enterprise Information Management, vol. 31 no. 1
Type: Research Article
ISSN: 1741-0398

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Article
Publication date: 1 June 2005

Mohammed H.A. Tafti

To provide a framework for risk assessment of offshore IT outsourcing.

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13503

Abstract

Purpose

To provide a framework for risk assessment of offshore IT outsourcing.

Design/methodology/approach

Based on review of recent literature, this paper has identified major risk categories of offshore IT outsourcing, discussed various risk factors within each category, and provided a general framework for the study of risk factors in this area.

Findings

Provides a general framework and a check‐list of the major risk factors related to offshore IT outsourcing.

Research limitations/implications

Suggests further research studies in three specific directions: case‐based studies; country and region risk analysis; and strategic alliance.

Practical implications

Provides a very helpful guideline for practitioners in assessing various risks involved in offshore IT outsourcing.

Originality/value

The paper provides a synthesis and analysis of the viewpoints as reflected in the literature on various dimensions of the risks associated with offshore IT outsourcing.

Details

Industrial Management & Data Systems, vol. 105 no. 5
Type: Research Article
ISSN: 0263-5577

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Article
Publication date: 1 January 2012

Alan R. Peslak

The purpose of this paper is to explore the views of top corporate financial executives on the success of implementation of systems outsourcing and offshore outsourcing

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4386

Abstract

Purpose

The purpose of this paper is to explore the views of top corporate financial executives on the success of implementation of systems outsourcing and offshore outsourcing, as well as the variables associated with success in these areas.

Design/methodology/approach

An analysis of secondary data obtained from the Financial Executives International comprehensive survey‐based research on technology issues for financial executives. Regression analysis and other statistical methods are used.

Findings

The study examined usage of outsourcing and offshore outsourcing from the top financial executive's perspective. Only 30 percent of the surveyed companies outsourced IT and only 25 percent engaged in offshore outsourcing IT. Size of the company did significantly influence usage. The major motivators behind the decision to pursue outsourcing were the views that IT is not a core competency and that significant cost reduction was possible. The experiences of the organizations surveyed reflect a general satisfaction with outsourcing and offshore outsourcing. But finally, it was found that while overall use of outsourcing did correlate with higher IT returns, offshore outsourcing did not correlate with higher IT return to the organization at traditional significance levels.

Research limitations/implications

The study can be used as a basis for further exploration on outsourcing and offshore outsourcing success, influencing variables, and motivators.

Practical implications

The findings can be used to guide management teams in outsourcing and offshore outsourcing decisions to maximize returns to their organizations.

Originality/value

Despite many studies that examine success from the theoretical and IT perspectives, this paper provides a large sample set, which empirically reviews major corporations' top financial executives' experiences with outsourcing and offshore outsourcing. In addition, it begins to explore the variables influencing overall outsourcing and offshore outsourcing success perception. Major contributions are the extent of the detail, the large dataset analysis, and the CFO rather than CIO perspective.

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Article
Publication date: 1 April 2000

Wendy Currie

Explores the supply‐side of the global IT outsourcing marketplace. Argues that companies should seek to understand the strategic positioning of IT suppliers. In recent…

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5080

Abstract

Explores the supply‐side of the global IT outsourcing marketplace. Argues that companies should seek to understand the strategic positioning of IT suppliers. In recent years, the large IT service providers have made inroads into new vertical markets from health care to e‐commerce. They have also expanded their service offerings to include business process outsourcing (BPO), customer relationship management (CRM) and e‐business. Explores some of these changes and presents a conceptual framework which captures some of the dynamic changes in the software and computing services industry. These involve mergers, acquisitions, joint ventures and partnering.

Details

International Journal of Physical Distribution & Logistics Management, vol. 30 no. 3/4
Type: Research Article
ISSN: 0960-0035

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Article
Publication date: 3 April 2007

Kai S. Koong, Lai C. Liu and Yong Jian Wang

This paper seeks to provide taxonomy and assessment methodologies for executives of global conglomerates with a selection of variables which can help them evaluate…

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2868

Abstract

Purpose

This paper seeks to provide taxonomy and assessment methodologies for executives of global conglomerates with a selection of variables which can help them evaluate outsourcing decisions.

Design/methodology/approach

A range of established theories, which addressed outsourcing decisions, are identified. The major determinants of global outsourcing were then formulated into an integrated model. Each of the variables identified was validated using multiple theories. Finally, a weighted score index was used to demonstrate how the variables can be used to evaluate outsourcing decisions.

Findings

It provides an overview of outsourcing theories about the variety of major reasons and their associated determinants as well as attributes that are relevant to decision‐makers. It showed that the individual theories can be integrated into a global taxonomy. This taxonomy can be assessed using a weighted‐index because the inputs and computation processes contain realistic qualitative and quantitative information.

Research limitations/implications

It is an assessment methodology that requires input and judgment from a variety of experts. Persons having such expertise may be fairly costly and difficult to find.

Practical implications

A very simple, yet comprehensive, and useful taxonomy for executives making outsourcing decisions. The assessment index is a proven methodology that is used by business consultants for a variety of related applications involving decision choices.

Originality/value

This paper fulfills the need for a more comprehensive view and a systematic approach to the assessment of outsourcing decisions. The index of attributes identified and the evaluation technique proposed are a practical approach.

Details

Industrial Management & Data Systems, vol. 107 no. 3
Type: Research Article
ISSN: 0263-5577

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Article
Publication date: 16 February 2010

Mohamed Alsudairi and Yogesh K. Dwivedi

In recent years a large number of studies have appeared on information systems (IS)/information technology (IT) outsourcing related issues but scattered in a number of…

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2778

Abstract

Purpose

In recent years a large number of studies have appeared on information systems (IS)/information technology (IT) outsourcing related issues but scattered in a number of distantly related publishing outlets which may hamper the use of such published resources and repetition of research conducted by various researchers. The purpose of this paper is to conduct a systematic survey of the literature pertaining to research on IS/IT outsourcing.

Design/methodology/approach

The research aim was accomplished by extracting information on a number of relevant variables by conducting a review of 315 articles on IS/IT outsourcing published between 1992 and 2008.

Findings

The analysis is presented by listing and illustrating subject category, journals, year of publications and country, frequently published authors, productive institutions, the trend of collaborative nature (co‐author analysis) of research, the impact/influence of published research; topics/research issues and utilised methods, and the challenges and limitations of existing research.

Practical implications

Results of this research may have implications for both private and public sector organizations interested in outsourcing IS/IT services and applications, and various stakeholders of academic publishing (namely, researchers, journal editors, reviewers and universities) research on IS/IT outsourcing.

Originality/value

The primary value of this paper lies in extending the understanding of evolution and patterns of outsourcing research.

Details

Journal of Enterprise Information Management, vol. 23 no. 2
Type: Research Article
ISSN: 1741-0398

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