Getting the control across: Control transmission in information systems offshoring projects

Offshoring of information systems (IS) projects has become a widespread global practice. While prior research suggests that controlling, and communicating with, offshore vendors represent key managerial challenges, the topic of how control is communicated, or transmitted, from client to vendor has been widely neglected. Our study focuses on control transmission in the critical relationship between client and offshore vendor managers, and its impact on the performance of IS offshoring projects. Drawing on a matched‐pair survey with 172 client and vendor managers from 86 projects, our results provide several new insights to the IS literature: First, we find that both behaviour and outcome control have the capacity to be transmitted consistently in lateral IS offshore project relationships. Second, our results show that consistent transmission translates into a performance effect only for outcome control. Third, we find that high‐performing offshore projects are characterized by both greater control transmission consistency and greater use of outcome control compared to low‐performing projects. In sum, our study extends theory on IS project control by highlighting that effective control of IS offshoring projects is not only about selecting proper controls but also about ensuring that, as a controller, you get the control across to the controllee.     

Vendors’ perspectives on trust and control in offshore information systems outsourcing

Whereas most discussion of outsourcing has concentrated on the clients’ perspective, we investigated the formation of offshore IS vendors’ trust in their client and the client's control over the vendor; these were assumed to affect the vendor's performance. Focusing on the Japan–China offshoring context, we conducted a survey of 110 project managers in nine Chinese IS outsourcers. Our findings indicated that trust had a significant effect on project quality but little on cost adherence; the relationship between control and the two vendor performance measures were the opposite of this. Furthermore, information sharing, communication quality, and inter-firm adaptation emerged as three significant contributors to the vendor's trust in the client; goal setting and cultural blending turned out to be significant in influencing the client's control over the vendor. One of the key contributions and implications of our research was that certain offshore client behaviors could shape vendor performance by influencing the vendor's trust in the client and client's control over the vendor, beyond formal contracts. These findings may be useful for both offshore vendors and clients in developing successful IS outsourcing.     

Das Zusammenspiel von Projektsteuerung und interorganisationalem Lernen und dessen Effekt auf kulturelle Unterschiede in globalen ISE-Outsourcing-Projekten mit mehreren Dienstleistern

Research into global, multisource, information systems development outsourcing projects has uncovered management challenges, including cultural differences on multiple levels. While control mechanisms and interorganizational learning have been shown to contribute to the mitigation of cultural differences in such projects, a gap persists regarding the effect of the interplay between these mechanisms. This study employs an exploratory single-case study design to analyze how formal and informal control mechanisms and interorganizational learning interact and thus contribute to the mitigation of cultural differences in global, multisource, information systems development outsourcing projects. With the key finding that the influence of informal controls and interorganizational learning on formal controls changes over time, this research helps expand the domain of control dynamics in global IS projects. This study also contributes to literature on ways to handle cultural differences in global, multisource, IS outsourcing projects.     

Information technology offshoring in India: a postcolonial perspective

In recent years India has become the information technology (IT) offshoring destination of choice for many Western organizations. From the perspective of vendor organizations in India, however, the IT offshoring phenomenon is more than just a business relationship with Western firms. It is also embedded within the context of the longstanding imbalances of power in the relationship between the West and the East, the implications of which have been largely ignored in empirical work on offshoring within the information systems (IS) discipline. Drawing on concepts from postcolonial theory and using data from our ethnographic fieldwork, we explore the experiences and responses of one Indian vendor organization to asymmetries of power in its relationship with Western client organizations. Our analysis demonstrates how a postcolonial reading and interpretation of IT offshoring adds an important new dimension to previous IS research and also helps to develop a more comprehensive understanding of the strategies deployed by vendor organizations.     

Client–vendor knowledge transfer in IS offshore outsourcing: insights from a survey of Indian software engineers

We use knowledge‐based theory to develop and test a model of client–vendor knowledge transfer at the level of the individual offshore information systems engineer. We define knowledge transfer in this context in terms of mechanisms by which an offshore engineer employed by a vendor can (a) gain understanding of their onshore client; and (b) utilize their knowledge for the benefit of the client. Over large geographic, cultural and institutional distances, effective knowledge transfer is difficult to achieve, although it is central to the success of many offshore outsourcing contracts. Our empirical test consists of a survey of vendor software engineers physically located in India but working on development projects for clients in Europe and the United States. The findings support predictions regarding engineer exposure to explicit and tacit knowledge: We find client–vendor knowledge transfer to the offshore vendor engineer to be positively associated with formal training and client embedment. We also test whether an offshore vendor engineer's inappropriate reliance on informal discussions in the offshore location hinders effective client–vendor knowledge transfer. Our result for this is mixed. Finally, we show differences between offshore engineers who have had previous onshore experience and those who have not. Client embedment is a potent driver of knowledge transfer when the offshore engineer has had previous onshore placement, while it acts to reduce inappropriate reliance on informal discussions for those that have not had an onshore placement.     

The effect of CRM use on internal sales management control: An alternative mechanism to realize CRM benefits

This case study investigates how effective internal sales management control is achieved through CRM use and why enhanced control is beneficial to firms, which are largely overlooked by the extant literature. The main theoretical lens is organizational control theories. Results show that CRM use strengthened formal control and informal control simultaneously. Formal control was significantly boosted by enhanced outcome measurability and process visibility of sales work. CRM use also facilitated informal control, by serving as the carrier of new institutional processes and sales philosophy, which bolstered clan control, and by functioning as tools for self-control.     

The mediating role of psychological contract breach in IS outsourcing: inter-firm governance perspective

A substantial body of previous research on the client–vendor relationship has identified inter-organizational partnerships and formal contracts as important governance mechanisms for outsourcing performance. Successful IS development through outsourcing, however, may be more dependent on the people who execute the project in the field than on inter-firm relationships and agreed-upon formalities. Among individual-level variables, the special importance of psychological contracts has recently been noted in IS literature. This study investigates the mediating role of psychological contract breach between these two firm-level governance factors and outsourcing performance. By analyzing matched responses from project managers, vendor participants, and system users, we found that the effects of explicit legal contracts and partnership quality on outsourcing outcome are fully mediated by the client's perception of breach by the vendor. This study offers an extended theoretical perspective on the governance of firm-level collaboration, especially revealing that the benefits of formal contracts and inter-organizational partnerships eventually translate into satisfactory outsourcing outcomes for system users through each party's perception of breach on the individual level. Moreover, discrepancy was observed in this study between the client and vendor regarding the impact of legal contracts on individuals’ psychological contract while that of partnership was prominent in both sides.     

Agile distributed software development: enacting control through media and context

While face‐to‐face interaction is fundamental in agile software development, distributed environments must rely extensively on mediated interactions. Practicing agile principles in distributed environments therefore poses particular control challenges related to balancing fixed vs. evolving quality requirements and people vs. process‐based collaboration. To investigate these challenges, we conducted an in‐depth case study of a successful agile distributed software project with participants from a Russian firm and a Danish firm. Applying Kirsch's elements of control framework, we offer an analysis of how control was enacted through the project context and in the participants' mediated communication. The analysis reveals that formal measurement and evaluation control were persistently enacted through mediated communication. These formal control practices were, however, predominantly carried out in conjunction with informal roles and relationships such as clan‐like control inherent in agile development. Overall, the study demonstrates that, if appropriately applied, communication technologies can significantly support distributed, agile practices by allowing concurrent enactment of both formal and informal controls. The paper discusses these findings as they relate to previous research and concludes with their implications for future research.     

Contextual influences on self-control of is professionals engaged in systems development

In today's turbulent business environment, there is a move away from traditional hierarchical relations and governance within organizations, and a move toward increased reliance on self-control, where an individual sets his own goals, monitors his own work, and rewards or sanctions himself accordingly. Since the use of self control is often recommended in an environment of task complexity and ambiguity, systems development would seem to provide an excellent context in which to study it. The goal of this research is to examine contextual factors (work unit structure and knowledge technology) that influence IS project leaders' perceptions of self-control. To meet this goal, two studies were carried out: a survey of IS professionals and a series of three case studies of systems development efforts. Overall, the results suggest that IS project leaders' perceptions of self-control are highest when they have considerable job experience, when they are able to further refine existing development procedures, and when they are involved in smaller, less-complex systems development projects. Implications for the practice of systems development are discussed.     

Vendor capabilities and outsourcing success: A resource-based view

Outsourcing is a generally accepted method for fulfilling an organization’s information systems (IS) needs. A prominent motive for outsourcing is a desire to increase the organization’s access to high-quality information technology and expertise. There is, however, little research that examines the connection between vendor capabilities and customer satisfaction. This paper addresses that gap by using the resource-based view of the firm to investigate linkages between vendor capabilities, IS quality, and customer satisfaction. A survey was completed by managers of outsourcing customer firms. The results were analyzed using Partial Least Squares (PLS). The results indicate that customers evaluate a vendor primarily in terms of technological capabilities, followed by relationship management capabilities. The vendor’s understanding of the customer’s business was not considered to be significant. There is a significant connection between the vendor’s capabilities and the quality of the IS function, which in turn was related to customer satisfaction.     

Der Einfluss kultureller Unterschiede beim IT-Offshoring

Recently, offshoring of information systems (IS) services to external vendors has seen considerable growth. Outsourcing to vendors in foreign countries causes unique challenges which need to be understood and managed effectively. This paper explores cultural differences in IS offshoring arrangements involving German client organizations that outsource application development activities to Indian vendors. For this purpose, a research framework is developed based on both theoretical considerations and specific empirical observations from multiple case studies. The goal is to (1) explore the nature of cultural differences in offshoring arrangements in depth and to (2) analyze the relationship between those cultural differences and offshoring success.     

Investigating enterprise systems adoption: uncertainty avoidance,intrinsic motivation,and the technology acceptance model

Enterprise systems are gaining interest from both practitioners and researchers because of their potential linkages to organizational and individual user's productivity. Information systems (IS) researchers have been investigating the implementation and adoption issues of enterprise systems based on the organizational IS management perspectives. However, there are few papers that investigate enterprise systems management and implementation issues based on the informal control mechanisms, although the enterprise systems are control tools in the organization. Specifically, this paper applies Enterprise Resource Planning (ERP) adoption and implementation to the informal controls, such as cultural control and self-control, which can be viewed as a tacit perspective in knowledge management. Uncertainty avoidance and perceived enjoyment are used as informal controls in the ERP implementation in this paper, and are linked to the technology acceptance variables to investigate the relationships among them. Sociotechnical design, organizational control mechanism, knowledge management, and individual motivation are reviewed to support this potential linkage in the model. Field data via the online survey of ERP systems user group (n=101) are analyzed with partial least squares and supported our hypotheses. Uncertainty avoidance cultural control and intrinsic motivation as self-control are the important antecedents of ERP systems adoption. Furthermore, the result helps the systems manager understand that informal controls should be applied to the ERP systems implementation to enhance tacit and social aspects of IS management.     

Direct Control or Responsible Autonomy: Two Competing Approaches to the Management of Innovation in Information Systems Projects

The article examines the theoretical positions of direct control and responsible autonomy in the context of empirical work in the financial sector on the management of information systems projects. Direct control is employed by managers through the use of formal project management methodologies and techniques. Responsible autonomy addresses the difficulties in applying direct control strategies and seeks to encourage creativity and innovation by developing an informal working environment for project managers and technical staff. Contextualising the two approaches for the financial services sector, a conceptual framework is developed on the relationship between management control strategies and information systems project risk.     

Forced coopetition in IT multi-sourcing

IT multi-sourcing refers to the managed delegation of IT projects and services to multiple vendors. While companies increasingly engage in multi-sourcing arrangements, theoretical insights into this important phenomenon are scarce. Drawing on the coopetition and multi-sourcing literatures, we introduce the concept of forced coopetition (i.e., the situation where a third party forces competitors to cooperate) to describe the vendor relationships in IT multi-sourcing models. As an illustration, we present the case of a global sports company that recently introduced a novel IT multi-sourcing model, which is characterized by high levels of both vendor competition and cooperation, i.e., high levels of forced coopetition. Based on a longitudinal case study, we discuss the factors that enabled the client firm to (1) foster vendor competition and cooperation as well as (2) manage the delicate balance between the two. Specifically, we find that vendor number and size, vendor onboarding, vendor business growth, and vendor learning played a critical role in the successful implementation of the multi-sourcing model. The study’s main contributions lie in providing a deeper understanding of how client firms can manage the delicate balance between vendor competition and cooperation in IT multi-sourcing, as well as expanding the theoretical basis of traditional coopetition to include situations of forced coopetition.     

Multiparty sensemaking: A technology‐vendor selection case study

Information system (IS) procurement history is replete with poorly executed, multimillion dollar procurement decisions. Yet we barely understand what effective IS procurement should look like. IS procurement is highly challenging, as it requires the client to simultaneously select a technology and vendor. This paper explores the technology‐vendor selection process through the sensemaking perspective. Our study develops a sensemaking model for technology‐vendor selection that connects the multiple rounds of client‐vendor communicative actions with the client's sensemaking process. We show how the client reconciles fragmented and sometimes conflicting cues and information through three intertwined cycles: immediate, retrospective, and decision. Sensebreaking occurs as a separate process (and not a communicative action) when disruptive cues occur persistently and from different vendors over multiple rounds of sensemaking. We derive a set of critical factors, on the basis of the sensemaking perspective, for selecting an appropriate vendor and technical solution. These insights in turn help explain many poorly executed IS procurement decisions.     

Competitive advantage from mandatory investments: An empirical study of Australian firms

Mandatory information system (IS) investments occur when government regulations require firms to alter their IS. These investments are additional expenditures added onto the initial expenditures of non-mandatory IS investments. Managers are concerned about associated costs and in an attempt to reduce the expenditures, most firms refrain from formal planning methods when mandatory investments are imposed upon them. Drawing on Henderson’s and Sifonis’ (1988) IS Planning and Investment Model as our theoretical lens, this paper argues that firms should re-consider this practice. It is hypothesised that formal planning methods are beneficial because they enable firms to combine mandatory and non-mandatory investments in such a way that competitive advantage can be achieved.We use a secondary dataset provided by the Australian government to test the hypotheses. Results show that only two out of three investigated formal planning methods are positively associated with competitive advantage. We conclude that in the special case of mandatory investments, formal methods are only beneficial if they incorporate information from the entire firm, rather than information from particular departments only.     

Information and Communication Technology Offshoring Logistics Success: A Social Exchange Perspective

As emerging countries continue to enhance the education of their workforce and modernize their infrastructures, the opportunities the information and communication technology offshoring increase. This research offers a perspective on the client–vendor relationship using social exchange theory. Our findings show that partnership mediates the relationships between communication, lack of trust, shared values, and offshoring logistics success. In addition, shared values increase trust, whereas power and partnership influence the success of offshoring logistics.     

Differential effects of formal and self-control in mobile platform ecosystems: Multi-method findings on third-party developers’ continuance intentions and application quality

Although control modes have been studied extensively in traditional IS contexts, minimal attention has been directed toward understanding how different control modes operate in platform ecosystems. Drawing on the IS control and self-determination literatures, we examined the differential effects of formal and self-control on third-party developers’ continuance intentions and application quality on mobile software platforms. Two studies from a laboratory experiment (N = 138) and a follow-up field survey with Android app developers (N = 230) show that self-control is superior to formal control because it allows for higher perceived autonomy that in turn promotes continuance intentions and application quality.     

Achieving it consultant objectives through client project success

Improving project performance is an important objective in IS project management. In consultant-assisted IS projects, however, consulting organizations may have additional objectives, such as knowledge acquisition and future business growth. In this study, we examined the relationship between client and consultant objectives and the role of coordination in affecting the achievement of these objectives. A research model was developed and tested using 199 consultant-assisted projects. The results showed that the achievement of consultant objectives was dependent upon the achievement of client objectives and that coordination had a positive impact on both client and consultant objectives.