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Article
Publication date: 14 December 2022

Colleen Carraher-Wolverton and Rudy Hirschheim

The authors’ contribution to the literature involves using expectation disconfirmation theory (EDT) to examine the impact of expectations on outsourcing success. This study…

Abstract

Purpose

The authors’ contribution to the literature involves using expectation disconfirmation theory (EDT) to examine the impact of expectations on outsourcing success. This study hypothesizes that perceptions of outsourcing success are contingent on disconfirmation between clients’ expectations and the perceived performance of fundamental issues related to the outsourcing relationship.

Design/methodology/approach

To test the hypothesis, this study surveyed chief information officers, vice presidents and senior information systems managers to determine their perceptions of vendors. This study analyzed the data using structural equation modeling.

Findings

The findings demonstrate that the existing outsourcing success factors are more precisely depicted as multidimensional success factors that predict managerial perceptions of outsourcing success. This study uses a novel perspective to identify the multidimensional nature of the outsourcing success factors that might have remained latent without further analysis.

Originality/value

Using EDT, this study extends the understanding of outsourcing success as not merely composed of unidimensional factors but as a collection of multidimensional outsourcing success factors. This research demonstrates that not only do these success factors predict outsourcing success, but they can also be grouped together to provide a diversified, yet parsimonious view of how expectations relating to certain success factors influence a client’s perception of outsourcing success.

Article
Publication date: 5 July 2021

Delshad Hoseini and Mohsen Shafiei Nikabadi

The purpose of this study is to achieve the dynamic model of outsourcing success factors in project-based companies.

Abstract

Purpose

The purpose of this study is to achieve the dynamic model of outsourcing success factors in project-based companies.

Design/methodology/approach

This study is descriptive-survey in terms of method and practical in terms of purpose. To achieve the dynamic model of outsourcing success, 1,000 outsourcing articles published in high-status journals from 2017 to 2019 were first text-mining. Then, using the clustering technique, the factors affecting the success of outsourcing were obtained. To achieve the key variables, the variables obtained by interpretive structural modeling (ISM) were then leveled. Then, the strategic options development and analysis (SODA) technique has been used to achieve a consensus and coordination on factors relationships. Finally, the dynamic model of outsourcing success in GHODRAT CONTROL PARS Company has been modeled and implemented.

Findings

In total, five clusters and nine factors were extracted (strategy, management, performance, market, R&D, supplier, product, organizational data and outsourcing findings). In central and domain analysis, two factors, “Strategy” and “R and D,” were recognized as factors that have the most interaction and centrality. The result of the dynamic model indicate that the organization will significantly reduce the construction time of the power plant by improving the “R and D” factor.

Originality/value

In this study, various techniques have been combined. Therefore, one of the aspects of innovation in the present study is the combination of methods that have not been used earlier. The second aspect of this study’s innovation is using SODA technique to design the dynamic model of outsourcing success factors. Given that the scope of this study is the component affecting the success of outsourcing, so extensive research has been conducted in the field of articles worked in the field of outsourcing to get a comprehensive view of the components affecting the success of outsourcing, which has not been reviewed in other articles. In this study, in addition to identifying the effective factors, their identified and also how these variables affect the successful performance of outsourcing in the form of a dynamic model, and then analyzed.

Details

Journal of Facilities Management , vol. 19 no. 5
Type: Research Article
ISSN: 1472-5967

Keywords

Article
Publication date: 2 August 2021

Vinh Van Thai, Shams Rahman and Dong Mai Tran

This paper aims to examine critical factors of successful logistics outsourcing relationship from the perspectives of both LSPs and shippers employing case studies in Singapore…

Abstract

Purpose

This paper aims to examine critical factors of successful logistics outsourcing relationship from the perspectives of both LSPs and shippers employing case studies in Singapore and Vietnam as examples of well-established and growing logistics outsourcing markets.

Design/methodology/approach

The case study design is adopted to empirically examine logistics outsourcing practices. Data were collected through in-depth interviews with senior managers from four cases in Singapore and seven cases in Vietnam. These case organisations are engaged comprehensively in logistics outsourcing activities and encompass both international firms that have their local operations and those local firms whose operations expand internationally.

Findings

Results suggest that the success of logistics outsourcing may depend on five strategic factors and five operational factors, with some of them being the same between LSPs and shippers in both countries and in line with the literature. There also seemed to be a difference between logistics outsourcing practitioners in a developed country (Singapore), and those in a developing country (Vietnam), in which factors, i.e. having the right people and management support, business processes integration and cultural intelligence, tend to be emphasised and practised more in the former. A strategy matrix of logistics outsourcing was mapped accordingly.

Research limitations/implications

The generalisation of this study would require further empirical examination from more quantitative research, for example, the use of surveys with shippers who engage with LSPs.

Practical implications

Findings from this research can assist managers in charge of outsourcing to reflect on their practices and devise and implement appropriate strategies for successful logistics outsourcing. Especially for growing logistics outsourcing markets and not-yet-standardised practices like Vietnam, the findings of this research are significant as they provide policy and managerial insights into how logistics outsourcing can be performed successfully. Specifically, adequate guidelines and resources including training relating to strategic factors of logistics outsourcing must be provided.

Originality/value

This research is one of the first studies that categorise success factors of logistics outsourcing into strategic and operational factors and postulates their conceptualisation in a strategy matrix that can be applied in future research.

Details

The International Journal of Logistics Management, vol. 33 no. 1
Type: Research Article
ISSN: 0957-4093

Keywords

Article
Publication date: 13 July 2015

Reyes Gonzalez, Jose L. Gasco and Juan Llopis

The purpose of this paper is to analyse Information Systems outsourcing success, measuring the latter according to the satisfaction level achieved by users and taking into account…

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Abstract

Purpose

The purpose of this paper is to analyse Information Systems outsourcing success, measuring the latter according to the satisfaction level achieved by users and taking into account three success factors: the role played by the client firm’s top management; the relationships between client and provider; and the degree of outsourcing.

Design/methodology/approach

A survey was carried out by means of a questionnaire answered by 398 large Spanish firms. Its results were examined using the partial least squares software and through the proposal of a structural equation model.

Findings

The conclusions reveal that the perceived benefits play a mediating role in outsourcing satisfaction and also that these benefits can be grouped together into three categories: strategic; economic; and technological ones.

Originality/value

The study identifies how some success factors will be more influent than others depending which type of benefits are ultimately sought with outsourcing.

Details

Industrial Management & Data Systems, vol. 115 no. 6
Type: Research Article
ISSN: 0263-5577

Keywords

Article
Publication date: 1 December 2005

Reyes Gonzalez, Jose Gasco and Juan Llopis

This paper aims to offer the results of a survey about information systems (IS) outsourcing.

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Abstract

Purpose

This paper aims to offer the results of a survey about information systems (IS) outsourcing.

Design/methodology/approach

The methodology is a questionnaire survey of 357 IS managers in Spanish firms.

Findings

IS outsourcing is a widespread activity that has been growing on a worldwide basis in recent years. The main outsourcing success factors for large Spanish firms are, in order of priority, the provider's understanding of clients' objectives, choosing the right provider, and the client's clear idea of what is sought through outsourcing.

Originality/value

Identifies the most important outsourcing success factors from the client point of view and present the relationships they have with certain characteristics of the firm like, for instance, its size.

Details

Information Management & Computer Security, vol. 13 no. 5
Type: Research Article
ISSN: 0968-5227

Keywords

Open Access
Article
Publication date: 31 August 2017

Apithamsoonthorn Sompong and Suthiwartnarueput Kamonchanok

Outsourcing is recognized as one of the critical factors for efficient execution of pharmaceutical supply chain management (PSCM), and many pharmaceutical companies engage in…

Abstract

Outsourcing is recognized as one of the critical factors for efficient execution of pharmaceutical supply chain management (PSCM), and many pharmaceutical companies engage in international outsourcing of services (IOS) to survive in global highly competitive business. Since the key success factors for both domestic & international alliances are partnership characteristics and strategic fit management, but there is no empirical research on this issue in Thai pharmaceutical partnership offshore outsourcing. Therefore, this survey of Thai and foreign companies, both contract providers (CPs) and contract manufacturers (CMs), seeks to indicate significant relationships among both outsourcing strategic fit and partnership types, including outsourcing performance outcome. This research is two-fold. First, the partnership types (Type I, II, & III), the strategic fit types (low fit, moderate fit, and good fit), and their correlations are analyzed. And second, their outsourcing performance (company revenues and growth rates) are presented. The results showed that the most of the Thai pharmaceutical outsourcing manufacturing are classified as the partnership Type II, as well as the moderate strategic fit, and strongly support the relationship between the two models. Both of the companies’ revenue and growth rate could predict the companies’ performances outcome for each of partnership and strategic fit types. However, it is not necessary that the most integrative type of partnership, Type III, will be always the best, because it depends also on the strategic fit between each pair of partners as well.

Details

Journal of International Logistics and Trade, vol. 15 no. 2
Type: Research Article
ISSN: 1738-2122

Keywords

Article
Publication date: 31 May 2013

Cong Qi and Patrick Y.K. Chau

Trust, as one of the core components of a relationship, has attracted research attention from many disciplines. From the perspective of IT outsourcing, this paper aims to divide…

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Abstract

Purpose

Trust, as one of the core components of a relationship, has attracted research attention from many disciplines. From the perspective of IT outsourcing, this paper aims to divide trust into two levels, interpersonal trust and interorganizational trust, and explore the effects of these two levels of trust on knowledge sharing and IT outsourcing success.

Design/methodology/approach

Based on social exchange theory and the theory of organization boundary systems, a theoretical model was developed and tested empirically with the responses to a cross‐sectional survey. Data were collected from key informants of 143 firms that had outsourced at least part of their IT functions.

Findings

The data analysis results showed that interpersonal trust plays a more dominant role than does interorganizational trust in making IT outsourcing successful and the extent of knowledge sharing has a significant mediating effect between interpersonal trust and IT outsourcing success.

Originality/value

From the managerial perspective, findings from this study once again emphasize the importance of relationship management (trust and knowledge sharing) on overall IT outsourcing success. Paying attention to interpersonal trust is an effective way for an organization to build and maintain a successful IT outsourcing relationship with its service provider.

Article
Publication date: 7 May 2020

Himanshu Prajapati, Ravi Kant and Sandeep Mani Tripathi

Outsourcing is a crucial tool for an organization to focus on its core business operations. The purpose of this study is to find critical success factors (CSFs) of outsourcing and…

Abstract

Purpose

Outsourcing is a crucial tool for an organization to focus on its core business operations. The purpose of this study is to find critical success factors (CSFs) of outsourcing and to prioritize the performance outcomes of outsourcing because of the adoption of its CSFs.

Design/methodology/approach

This research proposes the hybrid framework of fuzzy Delphi, fuzzy analytic hierarchy process (F-AHP) and fuzzy additive ratio assessment (F-ARAS) to fulfill the research objectives. Fuzzy Delphi is used to finalize the CSFs of outsourcing and F-AHP provides the relative weights to it. F-ARAS is used to prioritize the outsourcing performance indicators with respect to CSFs. The empirical case investigation of three Indian large-scale public sector process industries is conducted to demonstrate the applicability of the proposed framework.

Findings

The result shows that increased dominance in core activity, ability to increase or decrease capacity, improved financial performance, optimized resource utilization and increased market share are the top five performance outcomes because of the adoption of outsourcing CSFs.

Research limitations/implications

Factors such as cultural, political, environmental and size of the organization may have a significant implication on the research results.

Originality/value

This is a novel approach towards the prioritization of performance outcomes of outsourcing. Moreover, the present research is a helpful tool to manage outsourcing and choosing which performance outcome of outsourcing ought to be used to measure implementation. This will help to recognize potential opportunities and preparing strategic planning for both short-term and long-term goals.

Details

Journal of Global Operations and Strategic Sourcing, vol. 13 no. 4
Type: Research Article
ISSN: 2398-5364

Keywords

Article
Publication date: 4 December 2018

Yogi Yusuf Wibisono, Rajesri Govindaraju, Dradjad Irianto and Iman Sudirman

The purpose of this paper is to develop and to empirically test a model that explains how managing differences between an information technology (IT) provider and an overseas…

Abstract

Purpose

The purpose of this paper is to develop and to empirically test a model that explains how managing differences between an information technology (IT) provider and an overseas client influences partnership quality and ultimately affects the continuity of the relationship.

Design/methodology/approach

A field survey by distributing questionnaires to Indonesian IT providers was conducted over four months, yielding 78 completed responses. These empirical data were analyzed by the partial least squares–structural equation modeling technique to examine the measurement and structural models.

Findings

Managing differences, i.e. cultural, temporal and standards differences, has a positive impact on partnership quality through inter-firm interaction, i.e. information exchange, coordination and participation. Partnership quality, consisting of the dimensions of commitment, trust and integration, has a substantial positive impact on the continuity of the relationship.

Research limitations/implications

This study was limited by the use of a limited number of samples, reducing the precision of the results.

Practical implications

This study suggests that if the IT provider is able to manage the cultural, temporal and standards differences with the overseas client, it increases information exchange, coordination and participation between both parties, which are necessary for establishing a high-quality partnership.

Originality/value

This study is the first empirical examination of how the management of differences between an IT provider and an overseas client influences the continuity of their relationship through interaction and partnership quality.

Details

International Journal of Managing Projects in Business, vol. 12 no. 3
Type: Research Article
ISSN: 1753-8378

Keywords

Article
Publication date: 8 February 2013

Jayachandra Bairi, B. Murali Manohar and Goutam Kumar Kundu

The purpose of this paper is to provide an understanding of the major critical success factors involved in knowledge acquisition from an aging oil and gas workforce by outsourced

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Abstract

Purpose

The purpose of this paper is to provide an understanding of the major critical success factors involved in knowledge acquisition from an aging oil and gas workforce by outsourced service providers and find the outcome. In addition, the authors are also interested in finding out the outcome for the client and the service provider by following these critical success factors.

Design/methodology/approach

The authors shortlisted two outsourced firms for studying, primarily because they deliver lots of service support work to oil and gas firms. For the exploratory nature of this case study, a structured, open‐ended interview was conducted. Through face‐to‐face interviews with 12 senior managers, primary data were collected. Upon content analysis of data collected, the framework was evaluated.

Findings

The results of this study indicate that both client and service providers can benefit by following major critical success factors for knowledge acquisition. From the open‐ended interview with the two companies, it can be concluded that the service providers are able to grow their technical and domain capability through knowledge acquisition from ageing workforce and reduce the cost to client.

Research limitations/implications

The study has been restricted to two service providers, with majority of operations carried out of India, focusing only on US/UK‐based oil & gas firms. Implication on theory is, by following these critical success factors, it is likely to be easier to acquire the knowledge from an aging oil and gas workforce.

Practical implications

The service provider firms can build their knowledge capability, reducing the cost to both client and service provider. Further study with more service providers at the global level may help in pooling larger data. The primary contribution of the paper is in introducing the critical success factors with various associated activities that drive knowledge acquisition from an aging workforce.

Originality/value

The primary contribution of the paper is in introducing the critical success factors with various associated activities that drive knowledge acquisition from an aged workforce in the oil and gas industries. Second contribution is in highlighting the role of these critical success factors in gaining various benefits to client as well as to service providers.

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