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This paper aims to explain how small- and medium-sized firms (SMEs) create information technology (IT) business value through blended IT outsourcing (ITO). The explanatory framework it proposes enables SMEs to replicate IT capability outcomes (i.e. enhance their economic, strategic and technological competences, namely, ITO success) by endorsing an ITO strategy catalyzed by IT vendor integration.

This study uses covariance-based structural equation modeling to test the proposed research model. Data are collected from 251 knowledge-intensive business SMEs located in Science and Technology Parks in Spain.

The results demonstrate empirically that SMEs can replicate IT capability benefits (i.e. enhance their non-IT competences) through blended ITO in which IT, conceptualized as a transversal supporting activity, is outsourced to an IT vendor while the value creation process remains with the buyer. The integration (i.e. process integration and information sharing) of an IT-proficient vendor catalyzes ITO success. More specifically, the results show that, although process integration is not directly related to competence enhancement, fosters information sharing, which directly facilitates ITO success. The results also show that IT vendor proficiency accounts for ex ante trust.

Managers should think of transformational ITO as a strategy to enhance firm competences. For blended ITO strategies to succeed, managers must have a comprehensive understanding of the business they run, as it is important to create conditions that foster inter-firm information sharing. To achieve these conditions, managers should take special care in selecting boundary spanners, who are the pivotal links in competence enhancement.

While most research focuses on ongoing trust (i.e. trust develops as ITO evolves), this study focuses on initial (i.e. ex ante) trust and analyzes IT vendor proficiency (expert, experienced and reputed) to examine trust as an antecedent of ITO. This study also draws on previous conceptualizations of vendor integration to develop and analyze a two-step integration model to explain how IT vendor integration (i.e. process integration and information sharing) catalyzes enhancement of the buyer’s non-IT competences. This study focuses on SMEs, which are often neglected in ITO studies.

IT outsourcing (ITO) has developed into an established practice for organizations but the interorganizational and oftentimes international collaboration it involves comes at a price: Reports from academia and practice suggest that more than 25% of all ITO projects fail, many because of cultural differences between client and provider organizations. Against this background, this paper analyzes the complex nature of cultural distance and its multi-faceted effect on ITO success.

This paper builds upon extant literature on culture on the national, organizational and team level, conceptualizes its effect on relationship quality and ITO success, and hypothesizes a model on potential moderators and management techniques to offset culture-induced challenges. It then evaluates and refines the model by means of an interpretive qualitative research design for an in-depth single-case study of ProSiebenSat.1 Media SE (P7S1), a leading European media company that reconfigured its IT sourcing model three times in 10 years.

The results from interviews with top managers from client and provider organizations represent one of the first integrated views on the critical importance of cultural compatibility on multiple levels, provide manifold examples for its complex effect on ITO success, as well as moderators and potential management techniques to promote ITO success.

This paper contributes relevant empirical insights to the growing body of literature on culture and its underestimated role in ITO success. It builds on tentative theory that is confirmed and refined.

The paper helps in substantiating the complex and intangible nature of culture and demonstrates means for its effective management.

The results from interviews with top managers from client and provider organizations represent one of the first integrated views on the critical importance of cultural compatibility on multiple levels, provide manifold examples for its complex effect on ITO success, as well as moderators and potential management techniques to promote ITO success.

The purpose of this research was to uncover perceptions of information technology outsourcing (ITO) project leaders and project teams regarding knowledge transfer between client and vendor partners during opening and closing transition phases of ITO projects.

Qualitative methods and exploratory case study design were used. Purposeful sampling was used to identify ITO knowledge assets including project team members and organizational documents and artifacts that may provide information regarding the knowledge transfer processes during the transition phases of the ITO project. Sample criteria were ITO project team members from one US-based client organization and the company’s international vendor partners. The study population included project managers, analyst, developers, subject matter experts (SMEs) and other ITO knowledge workers involved in the ITO project from one US-based organization. Interview and document analysis were done using of NVivo Pro 11^® research software.

Four themes emerged from participant responses relative to the opening and closing phases of ITO projects including KT approaches to plans and processes; KT dependencies relative to IT project team member’s reliance on project tools, processes and artifacts; determinants of KT success or failure relative to project team members’ perceptions; and role of documentation relative to communication and distribution of KT outcomes.

This research may provide insights into additional aspects of knowledge transfer during ITO transition phases, which may be used by IT leaders and project teams to plan for successful knowledge transfer during the transition phases of ITO projects.

The purpose of this paper is to explore the influence of PRINCE2 (PRoject IN Controlled Environments 2) standard on customer satisfaction jointly with vendor relationship management capability in the information technology outsourcing (ITO) context. This paper further tries to explore the above underlying mechanism by studying the mediating effect of deliverable quality.

This paper develops a mediated moderation model to explain the underlying influence processes of PRINCE2 standard, vendor relationship management capability and deliverable quality on ITO customer satisfaction. By conducting a pair-wise survey of 260 project managers in seven Iranian firms, the model and hypotheses are empirically tested with the partial least squares method.

Our results suggest that firms benefit more in terms of IT costs reduction when they have a higher level of complementary investment in an external standard, especially through an interplay effect of the external standard and internal relational aspect. Firms can make business processes more amenable to outsourcing and facilitate monitoring of vendor performance and effective coordination with vendors. More interestingly, we find that this interactive effect is fully mediated by deliverable quality, which, in turn, directly increases ITO customer satisfaction.

This study adds some new knowledge and provides new views to study ITO customer satisfaction by addressing the importance of PRINCE2 standard. This study further enhances our understanding in terms of the underlying pathway through which the PRINCE2 standard jointly affects customer satisfaction with vendor relationship management capability and deliverable quality. With the effort of explicitly explaining the complex mechanisms, this study helps ITO managers proactively escort outsourcing activities and projects.

The governance of information technology outsourcing (ITO) has been identified as an essential determinant for ITO success. Prior studies have shed light on effective governance structures in different organizational contexts. This study aims to advance this prior knowledge by exploring how interpersonal networks, as an important aspect of such context, reflect and influence ITO governance.

A single case study was conducted from a vendor’s perspective in an ITO dyad. Social network analysis was leveraged to reveal the interpersonal networks, with whole-network analysis on 24 team members in an ITO vendor company. In addition, open-ended interviews with six selected team members were utilized to identify the perceived governance structure.

The findings of this study suggest certain features of interpersonal networks, i.e. network density and cross-network comparison, can reflect governance structure in multiple aspects. Meanwhile, the authors also argue that interpersonal networks can influence the form of governance structure.

As a single case study, the context of the research site cannot be ignored in the inference of findings. To increase the confidence for further generalization, future empirical studies are needed especially in contrasting sites, such as ITO relations based on network governance.

This study associates intra-organizational characteristics of the vendor to the inter-organizational governance structure of the ITO relationship. It also provides an innovative methodology for both researchers and practitioners to assess ITO governance structure.

The purpose of this paper is to propose a strategic conflict analysis, based on the graph model for conflict resolution (GMCR), that is applied to information technology outsourcing (ITO) in a real-world software development and implementation process in Brazil.

Because the idea of this study is to answer “why” the ITO conflicts occur and “how” they can be avoided, the case study methodology was adopted. The software GMCR II was used to analyze the interactions between an IT vendor and an IT client.

The results suggest that a lack of relational governance is a critical issue that could be handled to improve the interaction between those involved.

The main results are restricted to the case study and cannot be generalized. Moreover, a specific limitation of this paper pertains to the use of the GMCR and the consequent difficulty for IT vendors and IT clients to work with a large number of actions and to set preferences for several states of conflict.

The strategic analysis of outsourcing conflicts provides a holistic view of the current situation that may assist the client and vendor in future decisions and identify guidelines to ensure successful ITO. Therefore, this paper provides an effective guide for clients and vendors to better manage conflicts and establish a contingency vision to avoid such disputes.

The ITO conflict is analyzed using the GMCR, considering both perspectives of the outsourcing process (vendors and clients).

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.

A set of strategies and best practices for establishing collaborative governance mechanisms within a strategic offshore Information technology outsourcing (ITO).

The paper provides strategic insights and practical thinking that have influenced some of the world’s leading organizations.

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.

This research study aims to establish the significance of collaborative governance practices in creating higher business value from an offshore IT outsourcing (ITO) relationship.

At the outset, a Delphi technique identifies the most significant ITO success criteria from a prescribed list, which is the outcome of a review and analysis of existing research articles. Subsequently, an empirical survey captures the perceptions of provider-side middle level professionals to prioritize these significant success criteria, which are the outcome of the Delphi study. Statistical analysis of the prioritized success criteria delivers a set of success factors, which forms the basic building blocks to formulate a set of offshore governance strategies. A real-life case evidence shows the practicability of implementing the proposed strategies underlining the similar practices taken up in the past.

A set of strategies and best practices for establishing collaborative governance mechanisms within a strategic offshore ITO.

This research study captures the perspectives of Indian service providers only.

This comprehensive study helps the contractual parties harness and augment the positive impacts of success factors in implementing superior contractual, relational and performance governance strategies within a strategic ITO initiative. A collaborative program management mechanism ensures the fruitful implementation of proposed strategies with the active support of top management of contractual parties. Consequently, the proposed strategies help offshore providers assess and augment their service capabilities for higher business efficiency and value creation.

The purpose of this paper is to contribute towards development of a management framework for offshore business process outsourcing (BPO).

This paper utilises longitudinal case studies to identify success factors in managing offshore BPO via the captive model (i.e. wholly‐owned subsidiary).

Success in offshore BPO is based on a combination of cost savings, technical service quality and strategic issues, is specific to business context and will change over time. Choice of engagement model (e.g. captive operation or arms‐length contracting) is an important success factor. Advantages of captive centers arise from higher levels of relationship quality, trust and collaboration effectiveness.

This paper focuses on two global companies in two industry sectors (airlines and telecommunications), and both have adopted one particular BPO model (i.e. captive operation).

The paper contributes to scarce literature on offshore captive BPO operations, the most common but also least researched engagement model. The findings have practical implications for managers designing offshore BPO strategy.

This paper aims to provide an in-depth analysis toward understanding the critical factors in affecting information technology outsourcing (ITO) decision in the context of e-banking services in Iran. Within the recent decades, outsourcing IT processes and services as a strategic decision has been widely adopted throughout industries. In this regard, scholars have investigated a wide range of factors influencing ITO decision in various contexts.

This research examines a conceptual model that shows impacts of different attributes including technological, organizational and environmental on the Iranian banks’ ITO decision. To validate the research hypotheses, the partial least squares (PLS) technique for data analysis, is utilized.

The results of this study derived from the theoretical discussion of hypotheses illustrated that 9 of 11 assumed factors (i.e. perceived tangible benefits, perceived intangible benefits, perceived risks, perceived information security/privacy, complete contract establishment capability, making strong trustworthy relationship capability, uncertainty in business requirements, external pressure and market maturity) influence ITO decision in the target industry. The findings also confirmed that the size of the bank and competitors’ absorptive capacity did not exert any influence on their service outsourcing decision.

The sampling was confined to experts in the banking industry. Also, the results of this study reflect Iranian perspective. Consequently, generalization based on this sample would be interpreted cautiously and a limitation of the context should be kept in mind.

Insights into policymaking for suitable drivers to outsource e-banking services in the context of a less developed country are the main outcomes of the current research.