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Due to global systemic changes, the Brittle Anxious Nonlinear Incomprehensible (BANI)-world model has been formed since 2020, which greatly affects the world economic model. To overcome the main challenges, developing countries have to solve the tasks of their sustainable development and flexibility and transparency of various management methods at the microlevel. Outsourcing is regarded as one of such tools. Understanding the origins and development trends of outsourcing services makes it possible to effectively implement the tasks set for business in today's realities and contribute to the development of entrepreneurship and the economy of a country, making the system more sensitive and responsive. This research provides an overview of the development of the market for outsourcing services in Russia based on general information about the global market for outsourcing services and the current trends in Russia. The authors described the main milestones in the history of the formation of the outsourcing market in Russia, which influenced the formation of the main current features of the outsourcing services market. The authors also identified the main problems of the market for outsourcing services in Russia and highlighted the main directions for developing outsourcing.

This paper aims to involve both the development of a quantitative measure of outsourcing success that integrates recent research findings on expectations and applying the hierarchy-of-effects (HOE) model to investigating the influence of success on client satisfaction and recommendation intention.

This paper conducted a global survey of information systems managers and Chief Information Officers from firms who have engaged in outsourcing and analyzed the data using partial least squares (PLS).

The study analysis demonstrates the impact of client expectations on perceived outsourcing success, client satisfaction and intention to recommend. This paper also discusses how findings of this study provide important implications for both researchers and practitioners.

To further investigate the theoretical trend toward examining the impact of expectations on outsourcing success, this study extends the foundational success research by quantitatively demonstrating the robustness of an outsourcing success construct that incorporates expectations. Moreover, this study extends the traditional models of success by incorporating factors from each of the stages of client behavior, including cognition, affect and conation.

After reading the case and answering the case assignments, students will be able to understand and explain the challenges and opportunities for engineering, procurement and construction (EPC) contractors and their subcontractors; understand and critically analyse the advantages and disadvantages of insourcing and outsourcing of engineering, procurement and construction in EPC projects; determine which situations merit insourcing or outsourcing within each of engineering, procurement and construction in EPC projects; understand and identify the competencies and qualifications that a subcontractor must possess if any EPC activity is outsourced to them; and develop a decision-making framework to determine which EPC activities must be kept in-house or outsourced in EPC projects.

In mid-March 2021, PetroSahand International Group, a leading EPC contractor specializing in the oil, gas and petrochemicals industries in Iran, encountered significant challenges with its subcontractors in engineering and construction. These issues resulted in widespread repercussions for the company, including project delays and mounting debts. At the peak of these crises, PetroSahand’s senior management embarked on a thorough examination of whether to insource or outsource various aspects of their operations, such as engineering, procurement and construction. Their objective was twofold: to prevent similar setbacks in future projects and to navigate existing projects with minimal disruption to the company’s reputation. To address this critical dilemma, PetroSahand enlisted the expertise of a consulting team from Sharif University of Technology. Comprising esteemed professors, graduates and students from one of Iran’s most respected institutions, this team undertook an exhaustive analysis of the insourcing versus outsourcing debate across EPC domains. Subsequently, they presented their comprehensive findings, thereby confronting PetroSahand’s senior management with a pivotal choice regarding the optimal approach for each activity.

The audience of this work is undergraduate and graduate students who are enrolled in project management courses, both fundamentals and advanced. In addition, this case helps senior managers of EPC contractors gain a deeper and more comprehensive understanding of insourcing or outsourcing different project activities.

Teaching notes are available for educators only.

CSS 7: Management science.

This study attempts to determine the optimal pricing and warranty strategies for remanufactured products offered by independent remanufacturers (IRs). Specifically, it takes into account price competition and warranty service competition between the original equipment manufacturer (OEM) and IR, ultimately providing recommendations on the selection of warranty service modes for IRs.

This study considers two warranty modes for IRs: in-housing and outsourcing. Based on game theory, this study identifies the conditions under which the warranty service for remanufactured product is outsourced to retailers in IR-remanufacturing mode. Furthermore, this study investigates how this strategic decision affects closed-loop supply chain (CLSC) operations by comparing the two modes in terms of profit, consumer surplus (CS), quantity and overall social welfare (SW).

Firstly, the provision strategy for IRs' warranty on remanufactured products depends mainly on the retailer’s warranty cost. If retailers have lower costs for warranties, IR opts to outsource the remanufactured product warranty to the retailer. Second, when retailers offer warranties at a lower cost, IRs prefer outsourcing remanufactured product warranty to retailers. In this way, it will maximize both the remanufacturer’s and retailer’s profits while achieving the optimal total profit for the entire supply chain. However, it’s not beneficial for the OEM. Third, the IR’s preference for warranty service provision strategy is influenced by customers’ acceptance of remanufactured product, customer sensitivity toward remanufactured product warranty and economies of scale in warranty service.

The findings offer operational insights into IR decision-making in selecting warranty service provision strategies for remanufactured products.

This study is among the first to examine warranty provision strategy for IRs in CLSC.

An increase in outsourcing of consultancy services has been observed during procurement and delivery of public-sector infrastructure projects. However, the incidence of project failure has continued unabated despite this shift by public-sector entities. Also, there appears to be limited literature focussed on seeking to provide the rationale governing the decision to outsource or insource consultancy services by public-sector organisations. The purpose of this study was to appraise the performance of public-sector projects in which consultancy services have been outsourced or insourced. These are the gaps which this study was undertaken to fill.

A grounded theory methodology (GTM) research design was adopted based on the nature of evidence sought and gathered from a Provincial Department of Public Works and Infrastructure (PDPWI) in South Africa. Data was obtained from a mixture of semi-structured interviews and project-specific documents spanning a five-year period and was analysed according to the procedures associated with GTM. Accordingly, open coding, axial coding and pattern matching were carried out at several intervals to develop categories and themes.

The findings of the study showed the absence of a structured approach within the PDPWI for facilitating decisions pertaining to outsourcing or insourcing consultancy services within construction projects. Furthermore, the study established that both approaches yielded similar results across all performance facets of cost, time and quality. In addition, a detailed insight into the steps required for the successful application of GTM in built environment research has been provided in the study.

Limited studies have been undertaken to compare the impact of either outsourced or insourced services on the organisational and project performance. This was the gap to which the study reported in this paper was undertaken to contribute.

This study aims to assess the facilities management (FM) strategies used in multi-tenanted purpose-built office buildings (Mt-POBs) in Ghana and the drivers that influence the decision to use such strategies.

This study was conducted via a survey and key informant interviews. The survey was conducted using a questionnaire targeted at 65 multi-tenanted office building owners in the Greater Accra region. The data from the survey revealed the views of building owners on FM strategy and the extent to which 20 facility management decision drivers influenced their decisions to use a particular strategy and the responses were descriptively analysed. The key informant interviews were conducted among six leaders of the property owners’ association who use in-house FM to further understand their perspectives and decisions on using such strategy. The interviews were conducted over telephone using an interview guide and analysed using thematic analysis.

The results showed that 88% of Mt-POBs in Ghana are managed in-house. The results also showed that the decision to use the in-house strategy was driven by the innovative, strategic and cost-saving advantages associated with the in-house strategy.

This study shows the factors that drive the decision of multi-tenanted office building owners in Ghana to use the in-house strategy. The findings of this study will be useful for prospective owners of office buildings in Ghana.

The literature on information technology outsourcing (ITO) prioritises monetary considerations and overlooks human aspects. This qualitative study adopts a contextualised approach to address a research gap in understanding agency workers’ intent to stay in the ITO sector.

In contrast to previous studies that focus on intra-organisational factors and use quantitative designs, this study takes a qualitative approach. It analyses data from 85 in-depth interviews with agency workers in the Chinese ITO supply chain and project managers of supplier and client firms.

The study constructs an integrated framework covering 15 factors at three levels and shows how they interact to influence Chinese agency workers’ intent to stay in the ITO supply chain. Variations in outsourcing management styles and practices among U.S., Japanese and Chinese client firms are presented to enrich the understanding of outsourcing dynamics in a global context.

This study contributes to the ITO literature by providing new insights into the retention of highly skilled agency workers and deepening the contextual understanding of this issue, throwing light on the human aspects often overshadowed by monetary considerations.

This research investigates the differential impact of information technology (IT) investments based on their features, such as investment in data management capability, security improvement, IT outsourcing or new IT infrastructure. The Long-Horizon Event Study (LHES) is essential for providing a more appropriate measure of the value of IT investments because firms' strategic decisions often set long-horizon and large-scale organizational goals, and there is inherent uncertainty regarding future cash flows resulting from these investments. Therefore, the authors aim to analyze how announcements of IT investments affect the firm's abnormal stock returns over the long term and to compare the differential impact of different features of IT investment.

The authors gathered IT investment announcements and stock data of listed firms in Korea between 2000 and 2018, and the monthly stock market returns over the 5 years after the announcements. To measure the differential impact of IT investments based on the investment features, the authors separate announcements data into five groups. A LHES is used to estimate the long-term effects of IT investment announcements.

The results indicate that announcements of IT investments had a long-term positive effect on firm performance. Additionally, the findings reveal differential effects of IT investments across industries and investment features. Notably, news of self-developed IT investments and IT investments in the manufacturing industry had significantly positive effects. However, contrary to common belief, announcements of investments in so-called essential IT areas such as data, security, or new IT infrastructure did not yield significant effects.

Although the need for LHES has been emphasized in information systems research, few follow-up studies have been conducted since Barua and Mani (2018). This is primarily due to the challenges associated with collecting large-scale abnormal stock returns data over a long horizon. This research represents the first LHES to investigate the differential impact of IT investments based on their features. By doing so, this study can provide valuable insights for decision-makers within firms, helping them understand the time horizon of market outcomes of IT investments based on their features. Furthermore, this work extends the scope of LHES to comprehend the differential impacts of investment features. For instance, managers need to grasp that so-called essential IT investments, such as data management, security enhancements or new IT infrastructure, may not necessarily generate long-term market value.

The ecosystem concept has attracted attention in information system research to explain business competition, innovation and many other emerging phenomena. Existing studies focus more on a single ecosystem type or a single ecosystem goal and pay little attention to the ecosystem’s evolution. The objective of the study is to investigate the factors that impact the evolution of the information ecosystem (IE) to gain a better understanding of strategic thinking.

The IE involves many actors, so the multi-case study approach is conducted with purposeful sampling to recruit all the significant ecosystem actors. The collected qualitative data are analyzed by coding data, exploring data relationships and structuring pattern steps; institutional theory is used as a theoretical framework.

The results demonstrate that industry practices, laws and regulations, new actors and the mimetic pressure of outsourcers drive the growth of the ecosystem. Strategy intention, cost pressure and normative pressure all contribute to the IE’s evolution.

The concept of ecosystems has attracted attention in information system research. The study investigates the factors contributing to the evolution of the IE from an institutional theory perspective. Our suggestion is that new players can find a niche in offering information technology (IT)/ information services (IS)-related solutions to survive in the ecosystem; however, they need to pay attention to the normative pressure.

This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies.

This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context.

An information ecosystem (IE) can play an integral role in enhancing firm strategy. To ensure it evolves appropriately, companies must get new organizations on board at different stages and exploit the novel contributions of these actors. It is also important to remain mindful of how various institutional pressures shape the evolution process too.

The briefing saves busy executives and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy-to-digest format.