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Article
Publication date: 16 February 2010

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…

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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.

Details

Journal of Enterprise Information Management, vol. 23 no. 2
Type: Research Article
ISSN: 1741-0398

Keywords

Article
Publication date: 11 November 2014

Debasisha Mishra and Biswajit Mahanty

The aim of this paper is to make an attempt to find good values of onsite–offshore team strength; number of hours of communication between business users and onsite team and…

1056

Abstract

Purpose

The aim of this paper is to make an attempt to find good values of onsite–offshore team strength; number of hours of communication between business users and onsite team and between onsite and offshore team to reduce cost and improve schedule for re-engineering projects in global software development environment.

Design/methodology/approach

The system dynamics technique is used for simulation model construction and policy run experimentation. The experts from Indian software outsourcing industry were consulted for model construction, validation and analysis of policy run results in both co-located and distributed software development environment.

Findings

The study results show that there is a drop in the overall team productivity in outsourcing environment by considering the offshore options. But the project cost can be reduced by employing the offshore team for coding and testing work only with minimal training for imparting business knowledge. The research results show that there is a potential to save project cost by being flexible in project schedule.

Research limitations/implications

The study found that there could be substantial cost saving for re-engineering projects with a loss of project schedule when an appropriate onsite–offshore combination is used. The quality and productivity drop, however, were rather small for such combinations. The cost savings are high when re-engineering work is sent to offshore location entirely after completion of requirement analysis work at onsite location and providing training to offshore team in business knowledge The research findings show that there is potential to make large cost savings by being flexible in project schedule for re-engineering projects.

Practical implications

The software project manager can use the model results to divide the software team between onsite and offshore location during various phases of software development in distributed environment.

Originality/value

The study is novel as there is little attempt at finding the team distribution between onsite and offshore location in global software development environment.

Article
Publication date: 4 February 2014

Subasinghage Maduka Nuwangi, Darshana Sedera, Shirish C. Srivastava and Glen Murphy

Contemporary offshore information system development (ISD) outsourcing is becoming even more complex. Outsourcing partner has begun “re-outsourcing” components of their projects

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Abstract

Purpose

Contemporary offshore information system development (ISD) outsourcing is becoming even more complex. Outsourcing partner has begun “re-outsourcing” components of their projects to other outsourcing companies to minimize cost and gain efficiencies. This paper aims to explore intra-organizational information asymmetry of re-outsourced offshore ISD outsourcing projects.

Design/methodology/approach

An online survey was conducted to get an overall view of information asymmetry between principal and agents (as per the agency theory).

Findings

Statistical analysis showed that there are significant differences between the principal and agent on clarity of requirements, common domain knowledge and communication effectiveness constructs, implying an unbalanced relationship between the parties. Moreover, the authors' results showed that these three are significant measurement constructs of information asymmetry.

Research limitations/implications

In this study the authors have only considered three main factors as common domain knowledge, clarity of requirements and communication effectiveness as three measurement constructs of information asymmetry. Therefore, researches are encouraged to test the proposed constructs further to increase its precision.

Practical implications

The authors' analysis indicates significant differences in all three measurement constructs, implying the difficulties to ensure that the agent is performing according to the requirements of the principal. Using the agency theory as theoretical view, this study sheds light on the best contract governing methods which minimize information asymmetry between the multiple partners within ISD outsourcing organizations.

Originality/value

Currently, to the best of the authors' knowledge, no study has undertaken research on intra-organizational information asymmetry in re-outsourced offshore ISD outsourcing projects.

Details

VINE: The journal of information and knowledge management systems, vol. 44 no. 1
Type: Research Article
ISSN: 0305-5728

Keywords

Article
Publication date: 13 September 2011

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.

Article
Publication date: 1 August 2005

Laila Marouf and Sajjad ur Rehman

This paper aims to explore the organizational arrangements and employment policies and practices of 30 Kuwait corporate companies in five selected IT operations of system

1556

Abstract

Purpose

This paper aims to explore the organizational arrangements and employment policies and practices of 30 Kuwait corporate companies in five selected IT operations of system development, software applications, database management, networking, and web applications.

Design/methodology/approach

For the purpose of data collection, key human resource managers of these companies were interviewed. It was investigated what organizational placement had been practiced in these companies and who were the IT professionals in terms of their education, professional background, and other significant affiliations. Issues related to employer perceptions about the preparedness of these professionals and the problems they had faced in their employment were specifically addressed. These companies were conveniently organized into three categories for having distinct organizational policies.

Findings

It was noted that the practices greatly varied. Outsourcing was widely practiced for web applications, system development, and database management. A majority of employers showed dissatisfaction with the quality of local graduates and demanded a number of remedial measures from different quarters in order to ameliorate the problems they faced.

Practical implications

The findings have relevance for the executives and IT managers of Kuwaiti corporate companies for critical assessment of their human resource.

Originality/value

Provides information on the organizational arrangements and employment policies and practices of several Kuwaiti companies.

Details

The Electronic Library, vol. 23 no. 4
Type: Research Article
ISSN: 0264-0473

Keywords

Article
Publication date: 1 December 2003

Abdulwahed Khalfan

As is the case for many developing economies, internationally published research on information systems (IS) practice in Kuwait is in short supply. The few reports of Kuwaiti…

6654

Abstract

As is the case for many developing economies, internationally published research on information systems (IS) practice in Kuwait is in short supply. The few reports of Kuwaiti IS/information technology (IT) practice highlighted in studies of Middle Eastern or Arab computing, have also largely discussed them in terms of these broader regional identities rather than their specific national context. Business process outsourcing (BPO) is becoming a widely‐accepted management practice throughout the world. In recent years, outsourcing of information services has become a pervasive phenomenon. Increasingly, organisations rely on external service providers for IS/IT services. Kuwait has been used as an example of a developing country where the data collection for this study was done there. This study employed case study methodology because the author was interested in answers for “how” and “why” questions and because the study was partly exploratory. The primary data on IS/IT outsourcing practices, obtained for the first time in Kuwait, were collected by means of semi‐structured interviews supported by organisational documentation. The case study discussed in this paper brought to the surface critical elements missing in the contract that led to the demise of the BPO project. Studying failure is preventive because it helps organisations reduce the probability of failure in the future. A central argument of this paper concerns the need to understand the complex cultural and political implications of outsourcing within a global context (perspectives), a policy that is becoming increasingly important. The case study findings are crucial as they provide a careful diagnosis of failed IT outsourcing project.

Details

Business Process Management Journal, vol. 9 no. 6
Type: Research Article
ISSN: 1463-7154

Keywords

Article
Publication date: 20 April 2020

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).

Details

Journal of Enterprise Information Management, vol. 33 no. 6
Type: Research Article
ISSN: 1741-0398

Keywords

Article
Publication date: 1 December 2006

Reyes Gonzalez, Jose Gasco and Juan Llopis

The present paper has as its aim to deepen in the study of information systems offshore outsourcing, proposing three essential steps to make this decision: weighing up the…

8982

Abstract

Purpose

The present paper has as its aim to deepen in the study of information systems offshore outsourcing, proposing three essential steps to make this decision: weighing up the advantages and risks of offshore outsourcing; analysing the taxonomy of this phenomenon; and determining its current geography.

Design/methodology/approach

With that objective in mind, it was decided to base the research work on the literature about this topic and the review of reports and statistics coming from different sources (consultants, the press, public institutions, etc.).

Findings

Offshore outsourcing has grown vertiginously in recent years. Its advantages exceed even those of onshore outsourcing, though it also involves greater risks derived from the (cultural and physical) distance existing between customer and provider. Various types of services and customer‐provider relationships hide under the umbrella of offshore outsourcing; i.e. it is not a homogeneous phenomenon. The main offshore outsourcing customers can be found in the USA and Europe, mainly in the UK but also in other countries such as Germany and France. As for provider firms, most of them are located in Asia − outstandingly in India but also in China and Russia. At present, there are important providers scattered in other continents as well.

Originality/value

The conclusions suggest that the range of potential offshore outsourcing destinations must be widened and that the search for a provider cannot be based exclusively on cost savings; other considerations such as quality, security and proximity of the provider must also be taken into consideration. That is precisely the reason why the study of new countries like Spain as offshore outsourcing destinations is proposed.

Details

Industrial Management & Data Systems, vol. 106 no. 9
Type: Research Article
ISSN: 0263-5577

Keywords

Article
Publication date: 10 June 2014

Beena George, Rudy Hirschheim and Alexander von Stetten

This paper proposes a new research agenda for information technology (IT) outsourcing,motivated by the belief that the social capital concept enables IT outsourcing researchers to…

Abstract

Purpose

This paper proposes a new research agenda for information technology (IT) outsourcing,motivated by the belief that the social capital concept enables IT outsourcing researchers to capture more of the nuances of the client–vendor relationship in IT outsourcing arrangements.

Design/methodology/approach

The paper builds a comprehensive framework of social capital based on Nahapiet and Ghoshal (1998) to examine the IT outsourcing life cycle. Past research on IT outsourcing is examined applying the parameters of the framework to identify issues that have been addressed in research on IT outsourcing and to uncover the gaps in past research.

Findings

The social capital framework is applied to IT outsourcing which suggests new avenues for future outsourcing research.

Research limitations/implications

While past research has identified success factors for IT outsourcing, a significant number of outsourcing arrangement still fail to meet expectations. The research agenda presented in this paper encourages an examination of IT outsourcing from a different perspective to determine how to successfully manage IT outsourcing.

Originality/value

The paper provides a new framework that is useful for identifying the relationships among past research in IT outsourcing as well as for identifying potential topics for future research.

Details

Strategic Outsourcing: An International Journal, vol. 7 no. 2
Type: Research Article
ISSN: 1753-8297

Keywords

Article
Publication date: 2 June 2020

Jian-Jun Wang, Negin Sasanipoor and Meng-Meng Wang

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…

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Abstract

Purpose

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.

Design/methodology/approach

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.

Findings

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.

Originality/value

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.

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