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The decision to manage an outsourced project is easy but to provide client satisfaction is a difficult process. Outsourcing has been broadly accepted due to the extensive and useful business need they provide, even in those situations where the planning/decision support paradigm provided by the system poorly fits the business. The purpose of this paper is to propose an effective modeling methodology for managing the process of outsourced projects for the clients.

The paper proposes a cimosa, O3ML and business outsourcing process using DMADV methodology ‐‐ an effective modeling methodology for managing the process of outsourced projects for clients.

The hybrid governance structure consists of inter‐organizational coordination mechanisms, inter‐organizational systems and social control. Companies that wish to offshore their business process should select the service providers that can facilitate setting up such hybrid governance structure.

The limitations of managing the outsourced paradigm (IT or business process), i.e. redesigning work and assigning responsibilities, need to be clearly recognized if they are to be dealt and delivered with in an effective manner.

Six sigma is a business process improvement strategy, which essentially checks that the performance of the business is according to the needs of the client. The end‐user of a product or service is a client and thus the deliverable of a project should be according to the needs of the client.

The paper is of value in proposing an effective modeling methodology for managing the process of outsourced projects for clients.

The purpose of this paper is to discover the types of HR outsourcing processes employed by Australian organisations and their relationship to outsourcing outcomes.

This paper is based upon the results of a survey of medium to large Australian organisations. The survey data were analysed using quantitative analysis to extract the types of HR outsourcing processes, outcomes, and their relationship.

The analyses identified three types of HR outsourcing processes: screening and selecting, strategic fit, and managing and monitoring. The “strategic fit” process exhibited the strongest relationship to the HR outsourcing outcome followed by the “managing and monitoring” process. The “screening and selecting” did not correlate with HR outsourcing outcome. For each type of HR outsourcing process no correlation was found with the outsourced HR functions. It was found that the most important criteria for selecting an outsourced service provider were trustworthiness, reputation in the industry, cost structure, and history with the organisation. The least important criteria were the service provider’s financial position and cultural similarity with the organisation.

The research design acquired information from a single participant from each organisation which may result in a one-dimensional view. In addition, the data were collected from Australian organisations limiting its generalisation globally. Environmental and political factors were not included in the study. Therefore, researchers are encouraged to consider the influence of these factors on the HR outsourcing process.

The discovered HR outsourcing processes, although different from the generic HR outsourcing model, can be used by organisations to outsource HR functions in a more efficient and effective manner within the Australian context. The research results also indicate the importance for service providers to develop a good reputation and establish trust.

This study is the first quantitative research that determines the specific HR outsourcing processes and how they related to the HR outsourcing outcome in medium to large Australian organisations. The identification of these process types is unique and useful in validating and refining HR outsourcing knowledge within the Australian context.

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.

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.

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.

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.

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.

Digitalization brings complexity and challenges to the relationship governance between logistics outsourcers and their providers. Drawn on resource dependence theory (RDT) and resource-based view (RBV), this study aims to examine the role of relationship commitment in simultaneously managing dependence and improving operational performance in logistics outsourcing in the digital economy, as well as the contingent factors (i.e. communication, relationship length, and company size) that affect the effectiveness of relationship commitment.

Based on data collected from 130 third-party logistics (3PL) users in China, our model was tested with the partial least squares (PLS) approach.

First, relationship commitment is necessary for 3PL users to manage dependence on 3PL providers and improve operational performance in the digital economy. Second, communication helps 3PL users to develop higher relationship commitment but weakens the motivating effect of dependence on relationship commitment. Third, a long relationship history develops inertia to diminish the effectiveness of dependence on driving relationship commitment while it boosts the impact of relationship commitment on operational performance. Last, company size is an important signal to amplify the effectiveness of relationship commitment for operational performance enhancement.

This study contributes to the logistics outsourcing literature by integrating RDT and RBV to explain the twofold roles of relationship commitment, simultaneously tackling dependence and enhancing operational performance in the digital economy. Additionally, it expands the understanding of the boundary conditions (e.g. communication, relationship length, and company size) on these twofold roles.

This paper aims to examine how Chinese apparel retailers manage their production outsourcing risks and why they elect to manage those risks in a particular manner.

The investigation used the case study approach to explore factors driving two Chinese apparel retailers operating in different market environments to manage their production outsourcing risks.

The selection of production outsourcing risk management strategies hinges on what apparel retailers view as the most important value their products provide to customers. Product values were linked to specific product characteristics as well as the market environment in which the apparel retailers operated. The retailer that regarded product quality as a key value driver was found to place emphasis on manufacturer selection and use of a formal contract for process control. The retailer that viewed newness and variety as a value driver opted to cultivate a strong, committed business relationship based on Guanxi to achieve speed‐to‐market.

As a case study research, the findings of this study have their limitations in generalisability. Given that one of the retailers did not invoke Guanxi to cultivate a long‐term business relationship with its outsourced manufacturers, the role of Guanxi in outsourcing risk management in China deserves further exploration, as businesses in China become more globalised.

This study grounds mainstream outsourcing strategy literature on operational practice through case studies. It highlights the influence of both product characteristics and market environment in dictating the choice of outsourcing risk management strategies in apparel manufacturing.

The study views outsourcing risk management from the perspective of minimizing outsourcing failures, rather than achieving outsourcing success. It reveals that risk management behavior of apparel retailers was linked to the notion of value protection, which varied according to what they considered as their principal product value drivers.

You've finally cut to your core. But can you hold all the pieces together?

This paper aims to aid in understanding the motivations for information system (IS) outsourcing decision and its initial implementation at one of the top commercial banks in Malaysia. The scope of the study includes the motivating factors, the implementation strategy and managing the change process.

The study adopts a case study approach where 40 interviews were conducted among the staff, covering the management as well as non‐management group.

The findings of the study indicate that the motivating factors are the focus on core competencies, turning non‐profit activities into profit‐generating activities, and cost reduction. The implementation strategy involves the setting up of a two‐tier relationship between the bank and the service provider. The challenges involved in the transition phase include managing the partnership and handling the staff transition and morale.

To some extent, there may be some subjectivity involved in interpreting the results of analysis, as with any other studies that adopt a case study approach.

Amidst the complexity involved in any IS outsourcing endeavour, the management of a bank may learn some lessons from the experience reported in this study. At the initial stage, the bank should be concerned with the approach in establishing the partnerships and staff matters should not be undermined.

The study provides a real life example of IS outsourcing implementation in the banking sector of a developing country.

This paper aims to illustrate the value of the outsourcing life cycle, as described in several industry models, including ISO 37500.

The authors present a comparison of outsourcing life cycles to provide an overview of current practices in the global outsourcing industry.

Several outsourcing life cycles have been defined by industry associations such as the International Association of Outsourcing Professionals (IAOP) and the National Outsourcing Association (NOA). Academic research has created several outsourcing life cycles, notably the model from the London School of Economics (Cullen and Willcocks, 2005). Finally, commercial models have been defined, for example the Vendor and Sourcing Management model from IDC (2014).

Researchers will find the overview of different life cycles useful in assessing maturity of outsourcing organizations.

Practitioners will find the detailed description of ISO 37500 and the comparative life cycles to be illustrative of different approaches to managing outsourcing transactions. Both buyers and providers will be able to compare their own life cycle to industry standards.

Little or no research has been conducted on how outsourcing life cycles contribute to effective outsourcing. This paper provides a foundation for such research.

Outsourcing is a management approach by which an organization delegates some non‐core functions to specialized and efficient service providers. In the era of “global market” and “e‐economy”, outsourcing is one of the main pillars of the new way to conceive the relationships among companies. Despite outsourcing large diffusion, huge business cases and big deals of documentation available on network or press, there is no structured procedure able to support the govern of the evolution of a generic outsourcing process. In accordance with the principles of total quality management, this paper describes a proposal of a new approach for managing outsourcing processes. The model, which can be easily adapted to different application fields, has been conceived with the main aim of managing strategic decisions, economic factors and human resources. The approach is supported by different decision and analysis tools, such as benchmarking techniques, multiple criteria decision aiding (MCDA) methods, cost analysis, and other process‐planning methodologies. An application of the method to a real case is also provided.

Describes challenges and problems of outsourcing services at firms that are also adopting service logic and, based on an empirical study, provides lessons regarding how they can be managed.

One in‐depth longitudinal study of a leading systems provider has been carried out and data from between 1997 and 2003 has been utilised, consisting of 92 interviews, documents, and insider observations. Over 20 outsourcing projects were studied and the analysis was conducted both for the individual projects and across the different projects, in an iterative cycle back and forth between data on different levels and between data and theory. The aim was to search for patterns in the observed processes and glean lessons related to the outsourcing of services on an organisational level.

Based on a literature review, three outsourcing challenges and how they should be managed are presented: the internal change challenge, the strategy formation challenge, and the customer‐relationship challenge. Four selected project stories are then presented; illustrating empirically how the outsourcing challenges can be managed. The project stories illustrate how difficult it can be to select a detailed sourcing strategy and implement it in a linear fashion.

Three main lessons learned during the research are described. First, the change process should be iterative and interactive. Second, all outsourcing and partnering initiatives should be coordinated. Third, the customer‐relationship should be nurtured during the outsourcing process.

An unusual in‐depth study of the process and challenges of outsourcing product services at an industrial firm; providing rich illustrations and empirically‐based advice regarding how the challenges of outsourcing can be managed.