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The decision to source software development to an overseas firm (offshoring) is looked at frequently in simple economic terms - it's cheaper, and skilled labor is easier to find. In practice, however, offshoring is fraught with difficulties. As well as the considerable challenge of controlling projects at a distance, there are differences in culture, language, business methods, politics, and many other issues to contend with. Nevertheless, as many firms have discovered, the benefits of getting it right are too great to ignore. This book explains everything you need to know to put offshoring into practice, avoid the pitfalls, and develop effective working relationships. It covers a comprehensive range of the important offshoring issues: from ROI to strategy, from SLA to culture, from country comparisons to provider marketing. Written for CTOs, CIOs, consultants, and other IT executives, this book is also an excellent introduction to sourcing for business students.
This book is generated from a thesis written by this author in 2009 and provides an insight into the myth that is offshore outsourcing. The Information Technology field has often been criticized for its offshore outsourcing strategy and the negative impact it has on the American Economy. This book however, will provide insight and data gathered over the last twenty years, to show the true effects of offshore outsourcing. The advantages provided by offshore outsourcing are evident through the research in this book. Are we really losing all our jobs to offshore outsourcing? The rapid deployment of call centers to Asia Pac, has many claiming that all our jobs are overseas, this book gives you an insight into how globalization has affected the Information Technology field. The results might surprise you.
Bringing together theoretical and empirical studies from the Journal of Information Technology, this book provides a definitive guide to research discovered on the growing global sourcing phenomenon. Paying particular attention to Information Technology Outsourcing (ITO) and Business Process Outsourcing (BPO), theoretical chapters explore insightful ways of thinking about the different facets of outsourcing, and provide useful information to practitioners and researchers. Empirical chapters report the findings of 405 major research studies into the risks and successes of relationships between customer and vendor, the development of trust in these relationships, the factors affecting locations for offshoring, and specialized offshoring organizations such as captive centres. In this comprehensive study, the editors present an expert review of the historical development of this field, and offer analysis of emerging findings and practices for the future.
This new volume in the "Advances in Management Information Systems" series presents the latest cutting-edge knowledge in IT outsourcing. As part of the growing business trend to outsourcing various operations, IT outsourcing both determines the governance of a vital organizational function and influences the processes of exploitation and exploration in all other functions of an enterprise. In keeping with the mission of the "AMIS" series, the editors of this volume have framed the domain of research and practice broadly. "Information Technology Outsourcing" provides leading edge research on both the variety of decisions regarding the outsourcing of IS services and the management of the relationship with service suppliers.
This research study seeks to understand the nature of organisational change with respect to offshore outsourcing of information technology services in a multinational pharmaceutical company, and to examine the effectiveness of approaches used to manage this change so that lessons may be drawn from these experiences. Despite the abundant literature on effective organisational change management, the key factors that need to be managed properly at different stages of the offshore outsourcing process are not well understood. The research adopts a processual view to paint a broad picture of the issues involved in these different stages. A generic process model of change, based on the review of the change literature, was first developed to represent how change was intended to occur. This model focuses on the following four stages in the change process: context, diagnosis and planning, implementation, and institutionalisation. The research employs an interpretive case study approach and draws on fieldwork from three independent information systems departments (cases) of the company, where offshore outsourcing programmes were implemented. Qualitative data from semi-structured interviews, direct observation and document analysis are analysed by applying the generic process model to produce a detailed account of the way in which change was managed in the case organisations. The findings reveal that a combination of contextual factors, both external and internal to the company, influenced the adoption and use of offshore outsourcing in the case organisations. Externally, the economic forces were found to be the main catalyst for the change, while internally the role of the executive leadership and the lack of internal resources further explain the motivations behind the adoption of offshore outsourcing. The study illustrates that achieving successful outcomes from offshore outsourcing activities critically depends on the organisation adequately addressing a number of factors, such as conveying a sense of urgency, developing and communicating the vision, identifying the benefits of change and how they will be delivered, generating short-term wins, providing education and training, developing a fit between the change and organisational culture, etc., throughout the change process. The findings also highlight the effects of offshore outsourcing on the case organisations, including change in job roles and responsibilities and organisational learning activities that enable corrective actions to improve change management efforts. An important contribution of this research is the development of a model providing a more comprehensive understanding of the change process associated with the implementation of offshore IT outsourcing. Recommendations for policy makers and change managers to improve change management practice based on the research findings, as well as recommendations for further research, form a significant part of the conclusions.
Three years have passed since the second edition of this book was published. The field of IT outsourcing continues to grow in practice as well as in academia and draws further attention in both domains. Aspects of traditional outsourcing (Part II) have remained pronounced but are becoming more mature. While o- sourcing determinants are still important, they are now of less interest to researchers. Relationship management (Chap. 1) and capability management (Chap. 2) continue to be of interest; so too are outsourcing outcomes (Chap. 3) and, as a new focus, innovation aspects (Chap. 4). These are motivating more and more research activities, complementing the lifecycle of traditional o- sourcing. We note significant growth in the field of IT offshoring (Part II). In our third edition, we offer research results on offshoring patterns and trends (Chap. 5), the crucial aspect of knowledge sharing (Chap. 6), vibrant examples for offshoring dynamics (Chap. 7), and some new contributions on the deter- nants of offshoring success (Chap. 8). The last part of our book investigates the field of business process outsourcing (Part III). In this section, issues such as standardization, process outsourcing to India and deinstitutionalization patterns in the health-care sector are presented. Given these new subjects, we believe that Enduring Themes, Global Challenges, and Process Opportunities is an appropriate subtitle for this third edition of the monograph. Again, we have thoughtfully compiled contem- rary outsourcing research as a primer and a platform for scientific discourse.
"This book discusses the considerations and implications surrounding the outsourcing and offshoring of professional services, such as software development computer-aided design, and healthcare, from multiple global perspectives. This book, offers industry professionals, policymakers, students, and educators with a balance between a broad overview and detailed analysis of offshore outsourcing, would make an invaluable addition to any reference library"--Provided by publisher.
Outsourcing, as a business strategy, has been adopted for a very long time now. Offshoring, a subset of outsourcing, gained prevalence during the late eighties of the last century. Over the years, IT has evolved from being a back office procedure to a decisive and strategic paradigm, the rapid development of which has impacted, on a global scale, the way businesses conduct their operations. Offshoring has played a major role in bringing about this transformation and helping establish an industry of epic proportions in terms of geographical spread, operational diversity and impact on business and social aspects the world over. While popular perception identifies offshoring as the most effective way to trim business costs. This is not true for many reasons; the primary being, one size does not fit all and the cost-saving benefits are not always realized. The first half of this thesis aims at providing a better understanding of the IT offshoring industry by looking at the different types of outsourcing and offshoring, certain new trends that are taking form and have the potential to gain prevalence in the future, perceived benefits of IT offshoring and issues that need to be considered by an IT business before it adopts offshoring as a strategy to achieve its goals. Also, in order to demonstrate the impact of offshoring, we discuss certain implications of it on the computer science community with regard to computer science education. From a client business's perspective, there seem to be no consistent offshoring models to depict the big picture of how offshoring actually takes place. We present a general offshoring model in the latter half of the thesis that incorporates two-stage cost benefit analysis to identify candidate processes for offshoring. We then move on to present an IT process-offshoring specific model that has been derived from other models adopted by a number of client businesses and service providers, albeit customized to reflect specific process-offshoring needs. We call it the staged process-offshoring model. Our model is different in the sense that it establishes a balanced view of process-offshoring events taking place at both ends of the offshoring spectrum as opposed to presenting just strategies employed by the service provider to fulfill requirements of the client. With the model being structured in layers, each layer is present on the onshore and offshore end, which contributes towards the construction of a regulated offshoring management architecture in addition to demonstrating a job creation potential not just at the service provider location but, more essentially, at the client location.
"This book covers a wide range of topics involved in the outsourcing of information technology through state-of-the-art collaborations of international field experts"--Provided by publisher.