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11 – 20 of over 7000Although risks and client‐vendor relationships in IT outsourcing have been studied in prior research, there is a paucity of studies providing insights on the mitigation of client…
Abstract
Purpose
Although risks and client‐vendor relationships in IT outsourcing have been studied in prior research, there is a paucity of studies providing insights on the mitigation of client risks through the relationship. This research aims to focus on mitigation of the ex post risks of firms engaged in offshore software development (OSD). Client risks due to service provider behavior are identified first. Further, this work seeks to identify relationship variables that could reduce the impact of determinants of risk on a risk category.
Design/methodology/approach
This research followed a multiple case study method aiming to build insights and directions that would facilitate further research. The paper's goal of sampling was to choose cases which were likely to extend the emergent theory pertaining to risks and their mitigation through relationships.
Findings
Findings from this study show that shirking, loss of control over information assets, and service provider lock‐in are the three categories of ex post risks. A relationship management strategy ensuring reasonable profits to the vendor could mitigate shirking risk. Trustworthiness of vendors established through credibility and benevolence in prior engagements could mitigate the risk of loss of control over information assets. Further, dependence balancing through a multi‐vendor offshoring strategy and joint investments in relationship‐specific assets could mitigate the risk of service provider lock‐in.
Practical implications
The findings from this research provide useful insights in vendor selection and management process.
Originality/value
This paper adds to the growing body of literature in offshore IT outsourcing and makes two significant contributions: identification and categorization of risks due to vendor behavior and their determinants in OSD; and understanding the role of relationship dimension in mitigating such risks in OSD.
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Arthur Ahimbisibwe, Robert Y Cavana and Urs Daellenbach
While the choices available for project management methodologies have increased significantly, questions remain on whether project managers fully consider their alternatives. When…
Abstract
Purpose
While the choices available for project management methodologies have increased significantly, questions remain on whether project managers fully consider their alternatives. When project categorization systems and criteria are not logically matched with project objectives, characteristics and environment, this may provide the key reason for why many software projects are reported to fail to deliver on time, budget or do not give value to the client. The purpose of this paper is to identify and categorize critical success factors (CSFs) and develop a contingency fit model contrasting perspectives of traditional plan-based and agile methodologies.
Design/methodology/approach
By systematically reviewing the previous literature, a total of 37 CSFs for software development projects are identified from 148 articles, and then categorized into three major CSFs: organizational, team and customer factors. A contingency fit model augments this by highlighting the necessity to match project characteristics and project management methodology to these CSFs.
Findings
Within the three major categories of CSFs, individual factors are ranked based on how frequently they have been cited in previous studies, overall as well as across the two main project management methodologies (traditional, agile). Differences in these rankings as well as mixed empirical support suggest that previous research may not have adequately theorized when particular CSFs will affect project success and lend support for the hypothesized contingency model between CSFs, project characteristics and project success criteria.
Research limitations/implications
This research is conceptual and meta-analytic in its focus. A crucial task for future research should be to test the contingency fit model developed using empirical data. There is no broad consensus among researchers and practitioners in categorizing CSFs for software development projects. However, through an extensive search and analysis of the literature on CSFs for software development projects, the research provides greater clarity on the categories of CSFs and how their direct, indirect and moderated effects on project success can be modelled.
Practical implications
This study proposes a contingency fit model and contributes towards developing a theory for assessing the role of CSFs for project success. While future empirical testing of this conceptual model is essential, it provides an initial step for guiding quantitative data collection, specifies detailed empirical analysis for comparative studies, and is likely to improve clarity in debate. Since previous studies have not rigorously assessed the impact of fit between project characteristics, project environment and project management methodology on project success, additional empirically robust studies will help to clarify contradictory findings that have limited theory development for CSFs of software development projects to date.
Originality/value
Previous research for software development projects has frequently not fully incorporated contingency as moderation or contingency as fit (traditional vs agile). This research sets out to develop fully a contingency fit perspective on software development project success, through contrasting traditional plan-driven and agile methodologies. To do this, the paper systematically identifies and ranks 37 CSFs for software projects from 148 journal publications and holistically categorizes them as organizational, team, customer and project factors.
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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 distantly…
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.
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Anuradha Mathrani and David Parsons
The purpose of this paper is to investigate the current glocal (global and local) environment to answer the following research questions: How does the glocal environment influence…
Abstract
Purpose
The purpose of this paper is to investigate the current glocal (global and local) environment to answer the following research questions: How does the glocal environment influence software exporting industries in India? How is the evolving “sticky” knowledge from individuals and teams assimilated into organizational knowledge repositories? What management practices have been learnt and applied for advancement of knowledge portfolios in the offshore software business market?
Design/methodology/approach
An interpretivist research design is used to gain insights into organizational learning processes adopted by offshore software vendors for assimilating evolving knowledge into knowledge repositories.
Findings
This paper describes the influence of the current glocal environment on software exporting industries in India and presents a model for organizational learning to assimilate knowledge and build effective representations of emerging knowledge artifacts. The authors employ the concept of meta‐learning (or “learning about learning”) to analyze the recursive nature of organizational learning processes.
Practical Implications
The proposed model of meta‐learning explains how software organizations build on individual and team competencies to build core competencies. The model helps us to understand how organizations advance their learning processes and upgrade their knowledge repositories.
Originality/value
The paper offers new perspectives on how organizations reflexively monitor their knowledge processes to advance their knowledge portfolios. It identifies adhocratic and bureaucratic management processes for assimilating the evolving “sticky” knowledge from individuals into organizational knowledge repositories. This paper contributes to the growing body of literature that emphasizes ongoing learning from individual to collective level in the knowledge industry sector.
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Maisa Mendonça Silva, Thiago Poleto, Ana Paula Henriques de Gusmão and Ana Paula Cabral Seixas Costa
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…
Abstract
Purpose
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.
Design/methodology/approach
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.
Findings
The results suggest that a lack of relational governance is a critical issue that could be handled to improve the interaction between those involved.
Research limitations/implications
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.
Practical implications
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.
Originality/value
The ITO conflict is analyzed using the GMCR, considering both perspectives of the outsourcing process (vendors and clients).
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This paper focuses on how shared objects created by support departments in a software development firm facilitate the advancement of learning and knowledge sharing. Objects can be…
Abstract
Purpose
This paper focuses on how shared objects created by support departments in a software development firm facilitate the advancement of learning and knowledge sharing. Objects can be both facilitative and restrictive in certain ways, and the study seeks to enhance our understanding of how they can be made more facilitative.
Design/methodology/approach
This study can best be described as a single location exploratory case study in which data were predominantly gathered through unstructured interviews. The theoretical perspective of practice‐oriented studies is adopted, specifically utilizing activity theory to understand and analyze objects.
Findings
It is pointed out that, striving to understand objects with a focus on their often unanticipated usage can be useful in making them more facilitative. While emphasizing that objects are not used coherently in the field, the study explores how they could be made more facilitative by focusing on situated ways in which they act in the field. It was observed that they could become more facilitative by being shells with higher degrees of configurability, by being legitimate facades that create interesting contexts of multi‐project interactions and by being anchors of stability in an organizational setting of constant flux.
Originality/value
The research is exploratory in nature and has focused on the introduction of new ways of looking at objects in project‐based organizations. An enhanced understanding of the dynamics of objects in project settings can enable project personnel and support service personnel to make them more facilitative. For researchers, this study contributes to the discussions on understanding objects by proposing new ways of looking at the role of objects in project‐based organizations.
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Mary Lacity, Joseph Rottman and Shaji Khan
The purpose of this paper is to provide industry insights on the business models, practices, and capabilities that suppliers need to deliver cost‐effective information technology…
Abstract
Purpose
The purpose of this paper is to provide industry insights on the business models, practices, and capabilities that suppliers need to deliver cost‐effective information technology (IT) outsourcing services from rural locations within the USA. As rural outsourcing has not yet been studied by academics, many questions have not yet been answered. How can suppliers attract enough talent to rural areas to make rural outsourcing viable? How can suppliers scale operations? Will the value proposition attract serious clients? An ongoing research project was launched to answer these and other questions about rural outsourcing. This paper aims to report on the first set of findings based on four case studies.
Design/methodology/approach
This paper reports on the results from four case studies of rural outsourcing suppliers. In total, 35 semi‐structured interviews were conducted with founders, executives, delivery center managers, and delivery team members and a visit was made to a rural delivery center owned and operated by each of the four suppliers.
Findings
After comparing and contrasting the value propositions, location strategies, human capital development, and scalability of operations across the cases, in general, it was found that rural outsourcing suppliers position their value proposition as lower in price than urban outsourcing but higher in value than offshore outsourcing. Rural outsourcing suppliers achieve this value proposition by locating delivery centers in low‐cost areas and by recruiting, developing, and retaining a high‐performing workforce. Rural suppliers scale operations either by building multiple, small‐sized delivery centers or by building one large delivery center.
Research limitations/implications
There are still many aspects of this phenomenon that warrant additional study. The paper identifies areas of future research pertaining to client experiences, competition from large suppliers, government support, and rural outsourcing in countries outside the USA.
Practical implications
The paper identifies five lessons for practice: rural outsourcing works best when clients engage a team to deliver a service; rural outsourcing is not freelance outsourcing or staff augmentation; rural outsourcing addresses an unfilled gap in a client's sourcing portfolio; rural outsourcing suppliers will continue to move up the value chain; and most rural outsourcing suppliers operate best on a sell‐build sequence, so clients should plan ahead.
Originality/value
This paper reports on industry insights from one of the first known, ongoing academic studies of rural outsourcing.
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Meng-Meng Wang and Jian-Jun Wang
The purpose of this paper is to explore the underlying mechanisms through which integration capability and learning capability influence IT outsourcing performance from vendor’s…
Abstract
Purpose
The purpose of this paper is to explore the underlying mechanisms through which integration capability and learning capability influence IT outsourcing performance from vendor’s perspective.
Design/methodology/approach
This paper develops a moderated mediation model to explain the underlying influence processes of integration capability and learning capability on vendor’s performance. A sample of 237 vendor firms was obtained from China through two separated surveys. The hypotheses were tested with the partial least squares method and bias-corrected bootstrapping method.
Findings
The empirical results indicate that external integration capability (EIC) mediates the effect of internal integration capability (IIC) on vendor outsourcing performance, and the relationship between EIC and vendor performance is positively moderated by learning capability, while learning capability has a negative moderating effect on the link between IIC and vendor performance. Further, the conditional indirect effect is suggested. The indirect effect of IIC on vendor performance through EIC becomes non-significant when learning capability is low.
Originality/value
This study highlights the counterintuitive notion that learning capability may not always have uniformly positive effects and figure out the mechanism through which integration capability and learning capability can effectively improve IT outsourcing performance.
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Antti Nurmi, Petri Hallikainen and Matti Rossi
In large system development efforts organizational and managerial issues are often more challenging than technical ones. One of the key concerns of managers is the control and…
Abstract
Purpose
In large system development efforts organizational and managerial issues are often more challenging than technical ones. One of the key concerns of managers is the control and evaluation of the overall development effort. The purpose of this paper was to analyze the evaluation of system development process in a setting where there are multiple stakeholders in multiple organizations that develop a common information system (IS). The case is a consortium of universities that has developed a common student registrar system over a period of more than ten years.
Design/methodology/approach
The authors used a social process model to analyze the episodes and encounters in the system development and evaluation process. The research approach can be characterized as action case.
Findings
The authors found that in the early stages of system development the evaluation was emergent or even non‐existent. As the system was developed further and issues, such as delays and missing features, arose, there was a need for better control of the process. Thus, the evaluation process evolved through a series of critical encounters into a more proactive one.
Research limitations/implications
The authors studied only one case so broad generalizations directly from the case cannot be made. However, the results could hold true for similar settings. The authors believe that the results are interesting to both researchers and practitioners since in outsourcing relationships the consortium kind of arrangement is becoming more common.
Originality/value
The authors analyze the evolution of IS evaluation processes in a setting with multiple client and vendor organizations and reveal the complexities of system evaluation in such settings. Moreover, they introduce three new concepts: reactive, transitional and proactive evaluation processes. These concepts can help researchers and practitioners to better understand the nature of the IS evaluation processes and to possibly choose an evaluation approach that has a better “fit” with the development situation at hand.
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The purpose of this paper is to identify the opportunities, challenges and lessons of information technology outsourcing (ITO) in China.
Abstract
Purpose
The purpose of this paper is to identify the opportunities, challenges and lessons of information technology outsourcing (ITO) in China.
Design/methodology/approach
The challenges, opportunities and trends in offshore ITO in China are examined based on two trips to software centers in China, interviews and conversations with Chinese executives and government officials, research programs of outsourcing researchers and information from advisors and practitioners.
Findings
The paper extracts lessons learned about practices, processes and cultural factors that contribute to outsourcing success in China; why China attract ITO customers; how cultural dimensions and differences in accepted business practices complicate outsourcing in China; what strengths and weaknesses to expect from Chinese IT workers and outsourcing companies; and how to evaluate, select and manage Chinese suppliers.
Originality/value
The paper presents principles and extracts lesson learned to address the issues and opportunities for outsourcing in China.
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