How Client Capabilities,Vendor Configuration,and Location Impact BPO Outcomes

Despite the increasing use of onshore and offshore business process outsourcing (BPO), a comprehensive literature review [38] finds that there has been limited empirical research on BPO outcomes. This article responds to the call for research by developing and testing a conceptual model for BPO outcomes using data from 50 firms publicly traded in the U.S., including 38 firms in the Forbes Global 2000. We find that client firm capabilities, vendor configuration, and country location lead to interesting tradeoffs in the BPO quality, cost, and time outcomes. For example, while multi-sourcing offers advantages such as risk mitigation, client firms encounter reduced BPO time benefits when they use multiple vendors. While onshore BPO can lead to an improved quality, higher onshore labor costs result in lower BPO cost savings. And while offshore destinations such as India offer lower labor costs, time zone differences lead to reduced BPO time benefits.     

The effective promotion of informal control in information systems offshoring projects

As firms increasingly engage in interorganizational information systems (IS) projects, including IS offshoring projects, the challenge for client firms of effectively exercising control across organizational boundaries becomes critical. Although the importance of informal controls (clan and self-control) in this context has been recognized, prior research has focused primarily on formal controls. Consequently, our understanding of the use of clan and self-control in interorganizational IS projects is scarce, and partly inconsistent or contradictory. This study focuses the client’s role in promoting informal controls in interorganizational projects involving distant client–vendor relationships as well as the effectiveness of such controls. We use matched-pair survey data from 86 IS offshoring projects involving client and vendor relationship managers. Our results show an interesting pattern: while clan control is considerably more difficult to promote than self-control in client–vendor project relationships, only clan control has a direct positive impact on project performance. Moreover, formal control modes, national cultural values, and project context factors moderate both the promotion and the effectiveness of informal controls. Our study’s main contributions lie in establishing the relevance of the distinction between informal control given and received, and the importance of the client’s role in promoting informal controls.     

Procedural coordination and offshored software tasks: Lessons from two case studies

This paper presents two case studies of offshored software tasks. The success of such tasks is critically dependent on managing an inherent interdependence between onshore and offshore teams. In one case study, both teams belong to the vendor organization, while in the other they are affiliated respectively with client and vendor. It is shown that that interdependence is best addressed through procedural coordination, which entails two complementary strategies. The first consists of carefully specifying and partitioning tasks, and the second of implementing integration mechanisms to bridge communication gaps. Despite contextual differences, the two case studies offer common lessons.     

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.     

Knowledge transfer in IT offshoring relationships: the roles of social capital,efficacy and outcome expectations

Information technology (IT) development in global organisations relies heavily on the transfer of tacit and complex knowledge from onshore units to offshore subsidiaries. A central concern of such organisations is the development of social capital, which is known to facilitate the smooth transfer of knowledge. However, only a few studies in IS research have explicitly examined the role of social capital for knowledge transfer in an IT offshoring context. In this paper, we argue that such knowledge transfer mechanisms can be understood better by considering social capital in concert with knowledge senders' efficacy and outcome expectations, two of the potentially key motivational drivers of knowledge transfer. We develop our arguments through a qualitative case study of a large German multinational company. German IT developers in this firm provided in‐depth accounts of their experience with offshore colleagues in an Indian captive subsidiary unit. Drawing on our analysis, we develop a model that depicts the influence of social capital, efficacy and outcome expectations on onshore IT developers' ability and willingness to transfer knowledge to offshore colleagues. Through the model, we also explain how social capital, efficacy and outcome expectations are interrelated and generate three interlocked, self‐reinforcing circles of knowledge transfer success in IT offshoring relationships.     

IT outsourcing as strategic partnering: the case of the UK Inland Revenue

The information systems (IS) literature, and the industry sectors confronted with information technology (IT) outsourcing, are beginning to perceive IT outsourcing as more than just a necessary organizational resource-acquisition venture. Instead organizations have begun to consider vendors as their partners, causing many companies to enter into more intricate deals that include both contractual and informal issues. In light of these developments, a growing concern with forming closer client–vendor relationships has evolved for both vendors and clients. This paper explores, in the context of a case study, three critical dimensions emerging from previous studies. These are: what is outsourced; the contract; and the relationship dimension. We also explore the process and management issues underlying these dimensions. The investigation is enabled through two analytical frameworks, one proven in previous research, one exploratory, but both specifically developed for IT outsourcing arrangements.     

The role of IT human capability in the knowledge transfer process in IT outsourcing context

Our research attempted to identify the behavioral process of knowledge transfer by examining the effects of IT human capability, human character, trust, and cooperative learning on it in an IT outsourcing situation. By analysing data collected from vendor and client matched-pair samples of 87 IT outsourcing projects, we found that both the client's and the vendor's character influenced trust, trust affects on cooperative learning, and the cooperative learning influence on knowledge transfer. More importantly, it we found that the client's IT human capability had a direct impact on cooperative learning and knowledge transfer. This indicated that client's IT human capability was a crucial factor in effective knowledge transfer during IT outsourcing. It also implied that client firms should identify and retain some IT personnel who can apply vendors’ competencies in IT practice and respond effectively to any technological challenges.     

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.     

Global software testing under deadline pressure: Vendor-side experiences

ContextIn the era of globally-distributed software engineering, the practice of global software testing (GST) has witnessed increasing adoption. Although there have been ethnographic studies of the development aspects of global software engineering, there have been fewer studies of GST, which, to succeed, can require dealing with unique challenges.ObjectiveTo address this limitation of existing studies, we conducted, and in this paper, report the findings of, a study of a vendor organization involved in one kind of GST practice: outsourced, offshored software testing.MethodWe conducted an ethnographically-informed study of three vendor-side testing teams over a period of 2 months. We used methods, such as interviews and participant observations, to collect the data and the thematic-analysis approach to analyze the data.FindingsOur findings describe how the participant test engineers perceive software testing and deadline pressures, the challenges that they encounter, and the strategies that they use for coping with the challenges. The findings reveal several interesting insights. First, motivation and appreciation play an important role for our participants in ensuring that high-quality testing is performed. Second, intermediate onshore teams increase the degree of pressure experienced by the participant test engineers. Third, vendor team participants perceive productivity differently from their client teams, which results in unproductive-productivity experiences. Lastly, participants encounter quality-dilemma situations for various reasons.ConclusionThe study findings suggest the need for (1) appreciating test engineers’ efforts, (2) investigating the team structure’s influence on pressure and the GST practice, (3) understanding culture’s influence on other aspects of GST, and (4) identifying and addressing quality-dilemma situations.     

Optimizing vendor selection in a two-stage outsourcing process

The decision processes surrounding outsourcing are complicated by the very nature of uncertainty involved in the outsourcing process and by poor vendor management. In this study, we focus on vendor selection, one of the two basic issues of vendor management in outsourcing. Due to the limitation of the classic one-stage vendor selection model, we propose a two-stage vendor selection research framework in outsourcing. The first stage is a trial phase that helps the client to find the best match between the vendor and the outsourced project. In the second stage, the client employs the chosen vendor for the full implementation of the project. We formulate this selection decision under the two-stage framework as a combinatorial optimization model. We analyze the complexity of the problem and develop a solution procedure to find the exact optimal solution. By applying this model to numerical case studies, we demonstrate that benefit to adopt two-stage process to the vendor depends on information improvement in the first stage and the client's ability to adapt to updated knowledge. We also argue that the selection of vendors for the first stage testing is more about creating a good vendor portfolio than simply picking the frontrunners.     

Beyond the black box: knowledge overlaps in software outsourcing

The black-box approach - that is, the use of formal project requirements to transfer knowledge about the application problem domain from the client to the vendor organization - has long been the mainstay of outsourced software development. We've studied 209 custom application development projects in 209 global software development organizations. We used the study results to develop detailed guidelines for improving outsourcing practice and a client-vendor knowledge congruence assessment framework. The study's key finding is that effective outsourcing requires knowledge congruence - that is, a good fit in terms of business and technical knowledge across the client-vendor dyad. This uniquely extends the notion of the product/process fit from the manufacturing management arena into the more knowledge-driven domain of software engineering.     

Congruent patterns of outsourcing capabilities: A bilateral perspective

Despite the extensive proliferation of Information Technology Outsourcing (ITO), firms often obtain unsatisfactory outsourcing outcomes due to the lack of appropriate outsourcing capabilities of a client or their vendor. ITO clients strive to enhance outsourcing performance by establishing their own outsourcing capabilities as well as contracting with capable vendors to meet their strategic needs. Thus, for the success of an ITO project, it is imperative to find an effective combination of complementary outsourcing capabilities on both sides. However, knowledge of how to identify and develop a set of appropriate outsourcing capabilities of both client and vendor has yet to be developed. This study aims to fill this knowledge gap by elaborating on the configurational mechanisms of outsourcing capabilities from a bilateral perspective, which explicate how multiple types of client and vendor outsourcing capabilities combine into configurations simultaneously to produce high ITO performance. First, based on the ITO literature, we develop a conceptual framework that identifies three key types of outsourcing capabilities. Then, with the matched dataset collected from a client and their vendor, we conduct a fuzzy-set qualitative comparative analysis (fsQCA), which is a set-theoretic configurational method to investigate the systemic and holistic interdependencies among key outsourcing capabilities that produce high outsourcing performance. On the basis of the conceptual framework and empirical findings, we present four viable propositions to build configurations of client and vendor ITO capabilities that can achieve ITO success with theoretical and practical implications.     

IT outsourcing research from 1992 to 2013: A literature review based on main path analysis

Applying main path analysis, this paper investigates the IT outsourcing (ITO) field by identifying a set of papers that have played a central role in the development of the field and the major research themes emerging from the citation patterns. We selected the top 120,000 main paths from 6.45 million main paths among 798 ITO papers, resulting in a data set of 280 papers that represent the most important nodes supporting ITO knowledge flow. Based on our analysis of the multiple main paths, twelve major research themes emerged: ITO motivations, ITO decisions, ITO risks, debate around transaction cost theory, client–vendor relationship, the vendor's perspective, psychological and formal contracts, ASP, BPO, opensourcing and crowdsourcing, offshore outsourcing, and multisourcing. Finally, we discussed future directions of ITO research based on our findings. Our study is among the few studies that have used bibliometric analysis methods to analyze and visualize the citation network characterizing the rich body of ITO literature. The main path analysis precisely identified and visualized the major knowledge flow in the evolution of ITO research and major ITO research streams, thus providing an in-depth understanding of ITO research in the last 20 years.     

技术支持工程师的业绩评价体系的研究

由于笔记本电脑的设计中大部分机构组件和电子元器件都是在设计过程中就植入的,并且不能轻易更换。所以,各个组件和电子元器件商必须在项目设计过程中为笔记本电脑的设计者提供有效和及时的技术支持,并对项目进行质量和进度跟踪,同时在设计的整个阶段提供必要的产品信息,和设计资料更新,以使项目的顺利进行,减少项目风险和开发成本。本文主要分析和讨论目前行业内对技术支持工程师的业绩评价体系的现状及存在的问题,并且提出改进的方法。     

Knowledge exchange in the shrines of knowledge: The “how’s” and “where’s” of knowledge sharing processes

Academic conferences are places of situated learning dedicated to the exchange of knowledge. Knowledge is exchanged between colleagues who are looking to enhance their future research by taking part in several formal and informal settings (lectures, discussions and social events). We studied the processes of knowledge sharing and the influence of the use of IT at the International Conference of Information Systems (ICIS2007) held in Montréal. We describe the categories of knowledge content shared at the conference. Two forms of knowledge sharing were analyzed: formal, guided, planned knowledge sharing in lectures or discussions, and informal knowledge exchange during social events. Data were collected from 274 participants at the conference. The intensity of knowledge sharing in the formal settings was higher compared to the informal settings and was perceived as contributing to future research and to the creation of social relationships. In contrast, informal knowledge sharing contributed mainly to job enhancement and to the initiation of meetings. The discussion centers on planning and evaluating conferences in terms of seeking, creating and sustaining knowledge sharing.     

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.     

Vicious and virtuous circles of offshoring attitudes and relational behaviours. A configurational study of German IT developers

Prior research has shown that the success of offshoring is affected by relational behaviours of the employees involved in an offshoring collaboration. However, hardly anything is known about the attitudes that onshore colleagues hold towards offshoring, and how such offshoring attitudes affect relational behaviours towards offshore colleagues. We therefore present an interpretivist, qualitative case study that explores the offshoring attitudes of German information technology developers. We found that offshoring attitudes affected relational behaviours towards Indian offshore colleagues, in terms of (1) treating Indian colleagues as fellow team members as opposed to suppliers; (2) spending more or less effort in communication and knowledge transfer; and (3) supporting vs. avoiding the task transfer. These relational behaviours fed back into participants' offshoring attitudes, leading to vicious and virtuous circles. The circles created two contrasting configurations of offshoring attitudes and relational behaviours, driven by opposing forces within the departmental context. Our findings highlight the value of taking a configurational perspective for understanding offshoring success and for identifying drivers that need to be managed in order to achieve favourable configurations. We suggest that future research should further expand the typology of attitude‐behaviour configurations and could apply theories of efficacy, self‐reinforcing spirals and planned behaviour.     

基于变化生成图的OWL本体协同进化方法研究

随着本体规模的不断扩大，由于能力和知识的约束，单个知识工程师已经难以单独对本体进行改进，因此如何实现本体的协同进化成为了一个亟待解决的问题。本文提出了一个能够支持OWL本体协同进化的结构化方法，引入了一种有向的与或图——变化生成图来表示知识工程师的本体改进意图，通过发现变化生成图之间的冲突来找出多个知识工程师本体改进意图之间潜在的矛盾，并通过变化生成图的冲突消解来解决本体改进意图之间的矛盾，使得多个本体改进意图能够并存，从而实现本体协同进化的目标。     

A logistic regression framework for information technology outsourcing lifecycle management

We present a methodology for managing outsourcing projects from the vendor's perspective, designed to maximize the value to both the vendor and its clients. The methodology is applicable across the outsourcing lifecycle, providing the capability to select and target new clients, manage the existing client portfolio and quantify the realized benefits to the client resulting from the outsourcing agreement. Specifically, we develop a statistical analysis framework to model client behavior at each stage of the outsourcing lifecycle, including: (1) a predictive model and tool for white space client targeting and selection—opportunity identification (2) a model and tool for client risk assessment and project portfolio management—client tracking, and (3) a systematic analysis of outsourcing results, impact analysis, to gain insights into potential benefits of IT outsourcing as a part of a successful management strategy. Our analysis is formulated in a logistic regression framework, modified to allow for non-linear input–output relationships, auxiliary variables, and small sample sizes. We provide examples to illustrate how the methodology has been successfully implemented for targeting, tracking, and assessing outsourcing clients within IBM global services division.Scope and purposeThe predominant literature on IT outsourcing often examines various aspects of vendor–client relationship, strategies for successful outsourcing from the client perspective, and key sources of risk to the client, generally ignoring the risk to the vendor. However, in the rapidly changing market, a significant share of risks and responsibilities falls on vendor, as outsourcing contracts are often renegotiated, providers replaced, or services brought back in house. With the transformation of outsourcing engagements, the risk on the vendor's side has increased substantially, driving the vendor's financial and business performance and eventually impacting the value delivery to the client. As a result, only well-ran vendor firms with robust processes and tools that allow identification and active management of risk at all stages of the outsourcing lifecycle are able to deliver value to the client. This paper presents a framework and methodology for managing a portfolio of outsourcing projects from the vendor's perspective, throughout the entire outsourcing lifecycle. We address three key stages of the outsourcing process: (1) opportunity identification and qualification (i.e. selection of the most likely new clients), (2) client portfolio risk management during engagement and delivery, and (3) quantification of benefits to the client throughout the life of the deal.     

HCI reality—an ‘Unreal Tournament’?

The cooperation between designers, engineers and scientists in the human–computer interaction (HCI) community is often difficult, and can only be explained by investigating the different paradigms by which they operate. This study proposes a paradigm model for designers, engineers and scientists, using three barriers to separate the professions. We then report on an empirical study that attempted to validate the understand/transform world barrier in the paradigm model using an online questionnaire. We conclude that the used ‘Attitude About Reality’ scale was unsuitable for measuring this barrier, whereas information about the educational background of the participants was a good predictor for the self-reported profession (designer, engineer or scientist). Interestingly, among the three professions, engineers appear to be the cohesive element, since they often have dual backgrounds, whereas very few participants had dual science/design backgrounds. Engineers could, therefore, build a bridge between designers and scientists, and through their integrative role, could guide the HCI community to realizing its full potential.