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.     

Profiting from business process outsourcing

Companies have successfully used outsourcing for decades to generate savings and allow greater focus on core (essential) business. Outsourcing traditionally noncore (nonessential) yet critical functions to larger service providers is one of the fastest-growing changes in the market today. We refer to this process as business process outsourcing (BPO). Two significant market forces are driving this practice: a growing low-cost white-collar labor pool and automation and codification of best practices. Although the BPO market has been around for more than 40 years, it is only now reaching many companies' radar screens because of the better service levels and cost-savings promise. The two opportunities behind the recent growth of this sector - process modules and offshoring - show enormous promise, and companies musty use them in conjunction to show sustainable savings and, hence, long-term profitability. Future work in this area would involve understanding the definitions, costs, benefits, and risks associated with various service delivery models that service providers deploy, such as a global services delivery model that uses on-site, on-shore and offshore locations and a pure offshore services delivery model.     

Sleep patterns,shiftwork, and individual differences: a comparison of onshore and offshore control-room operators

Abstract

The sleep patterns of offshore control-room operators were compared with those of personnel carrying out similar work onshore, taking into account individual differences in age, number of years of shiftwork, and neuroticism. The dependent variables were self-reported sleep quality and duration for day-shift (D-S) and night-shift (N-S) work, and during leave periods (L-P) Offshore workers reported longer N-S sleep duration, and lower D-S sleep quality than those onshore, but the two groups did not differ in L-P measures. The effects of environmental differences (onshore versus offshore) on sleep patterns were more marked than those of the two different shift systems (weekly rotation and fast rotation) in operation onshore. Age was negatively related to both duration and quality of sleep; over and above age, number of years of shiftwork was negatively related to sleep duration. Neuroticism was also negatively related to sleep duration and, more strongly, to sleep quality. These findings are discussed in relation to the literature on shiftwork and sleep in general, and the characteristics of the offshore environment in particular     

A perception-based model for EDI adoption in small businesses using a technology–organization–environment framework

The wide adoption of electronic data interchange (EDI) has been argued to be important for the success of the technology. Past studies on EDI have focused mainly on large firms, as they were the major users at the time. With the advance of technology, however, EDI applications that used to require mainframe computers can be used on PCs at a much lower cost. At a result, small businesses are now able to enjoy the benefits of EDI. Using a technology–organization–environment framework, this study proposes a perception-based small business EDI adoption model that is tested against data collected from 575 small firms in Hong Kong. Six factors are tested using logistic regression and five are found to be significant in distinguishing adopter firms from non-adopter firms. The results suggest the perception-based model using a technology–organization–environment framework is a useful approach for examining factors affecting the adoption decision. For small businesses, while direct benefits are perceived to be higher by adopter firms than by non-adopter firms, indirect benefits are not perceived differently by either adopter firms or non-adopter firms, contrary to the findings in studies on large business. In addition, adopter firms perceive lower financial costs and higher technical competence than non-adopter firms do. Also, adopter firms perceive higher government pressure but lower industry pressure than non-adopter firms do. Implications of the findings and future research areas are discussed.     

Bodyshopping versus offshoring among Indian software and information technology firms

Investigations of offshore outsourcing of information systems have presented little evidence on developing country software and information technology (IT) industries. This study probes how Indian software and IT suppliers trade off work in India versus bodyshopping of employees. Worldwide clients view these practices as full offshoring versus on-shore temporary hiring from an Indian firm, but these practices are probed from suppliers’ perspective. Suppliers’ characteristics are theorized to affect their use of bodyshopping versus in-India work. A Reserve Bank of India survey of every Indian software and IT firm elicited suppliers’ use of bodyshopping to serve clients abroad. Consistent with theoretical rationales, suppliers that were larger, incorporated, public, and owned foreign subsidiaries most frequently provided bodyshopping among their international services. Bodyshopping was used frequently for IT purchasing and systems maintenance and infrequently for business process applications, and was infrequent to nations where bodyshopped labor costs were high. The evidence expands knowledge of the vibrant entrepreneurial IT industry in India and how it serves client firms abroad.     

Artificial intelligence and big six accounting: A survey of the current uses of expert systems in the modern accounting environment

In mid January, 1991, KPMG Peat Marwick, the worlds largest international certified public accounting firm announced the layoff of 16% of its partners, world-wide. This unprecedented move came on the heals of the complete closure of several mid-size firms. All these actions are part of the Accounting Professions perceived need to increase efficiencies and provide more cost effective services in an increasingly competitive and demanding market place.

In the face of the current savings and loan crisis and general recessionary environment of the economy in general, it is not sufficient for these firms to simply reduce costs. They must reduce costs while simultaneously improving the quality of services. The demands and complexities of this goal have resulted in a reevaluation of traditional business practices in larger CPA firms.

This paper surveys the use of artificial intelligence in the form of expert systems as a means that the larger public accounting firms are utilizing to meet the their conflicting demands of reduced cost and improved quality of services.     

The role of policy in balancing outsourcing and homeland security

Many US high-tech companies outsource software development overseas, particularly to countries known for their ability to develop sophisticated software. In particular, India, Pakistan, China, and Russia not only have strong technical capabilities but also a large and technically sophisticated labor force. Excess labor supply, coupled with a high-quality work product, has attracted overseas investment, particularly among US firms eager to develop and deliver cutting-edge products at lower cost. Outsourcing has not been confined to high-tech software development; it extends to application service provisioning, in which a supplier owns and remotely manages an organization's business applications. However, corporations must balance the benefits of outsourcing high-tech software development and application service provisioning against the costs, especially with regard to homeland security.     

Understanding critical risks of business process outsourcing from the vendor perspective: A dyadic comparison Delphi study

Business process outsourcing (BPO) enables organizations to enhance operational capability, shorten response time, and gain strategic value. Yet, BPO risks are real and BPO initiatives can and do go awry. While prior research has attempted to understand BPO risks from the client perspective, the critical risks of BPO from the vendor perspective (and how they differ from those of the client perspective) are not well understood. By using the Delphi method, this study identifies and ranks BPO risk factors from the perspective of vendors as well as clients (for comparison purposes) across two countries. We identify a list of 68 BPO risk factors perceived by vendors and clients and top-ranked risk factors perceived by vendors. We categorize these factors into six risk dimensions (i.e., organizational environment, client, complexity, contract, execution, and vendor). Our findings indicate that vendors are concerned about not only the risks that influence their own business, but also those that may impact the business of clients. However, vendors focus more on client and execution risks, whereas clients focus more on vendor and organizational environment risks. Our research contributes to the existing literature by not only investigating the top-ranked risks from the perspective of vendors, but also revealing the similarities and differences in the perceptions of vendors and clients with respect to BPO risk. Our research also has practical utility for BPO vendors and clients.     

Offshore Outsourcing: Current and Future Effects on American it Industry

Outsourcing has taken on new meaning for the American IT industry. Although most companies have outsourced selected IT projects and functions for many years, the growth in offshore outsourcing has exploded in size as companies have sought lower labor costs and other benefits. This article synthesizes recent published reports to provide an overview of the status of offshore IT outsourcing and some current and projected effects on the American IT industry. [Editor's Note:for discussions of management issues associated with offshore outsourcing, see the Summer 2004 issue ofInformation Systems Management.]     

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.     

基于B/S结构下的合同、成本控制管理系统开发研究

目前科研单位都以合同为主要管理线索,进行成本管理。然而现阶段部分单位仍然采用人工进行手动的管理,这不仅消耗大部分的人力资源,还容易产生误差,对该系统的研究正是为了解决这一问题。该系统为合同、成本等相关方面建立了完整统一的体系,免去人工管理的烦琐,极大的提高了工作效率,提升了管理水平和经济效益。考虑到该系统的实际应用需求,因此采用了B／S结构。客户端无需安装软件。只要可以访问网络,就可以从任何地方访问主干系统．实现信息共享融合。该系统还可以与企业内部ERP管理系统结合,实现网上业务与企业内部各功能管理模块的实时响应。介绍基于BIS结构下合同、成本控制管理系统的设计目标和设计思想。     

Process improvement for small firms: An evaluation of the RAPID assessment-based method

With increasing interest by the software development community in software process improvement (SPI), it is vital that SPI programs are evaluated and the reports of lessons learned disseminated. This paper presents an evaluation of a program in which low-rigour, one-day SPI assessments were offered at no cost to 22 small Australian software development firms. The assessment model was based on ISO/IEC 15504 (SPICE). About 12 months after the assessment, the firms were contacted to arrange a follow-up meeting to determine the extent to which they had implemented the recommendations from the assessment.Comparison of the process capability levels at the time of assessment and the follow-up meetings revealed that the process improvement program was effective in improving the process capability of 15 of these small software development firms. Analysis of the assessment and follow-up reports explored important issues relating to SPI: elapsed time from assessment to follow-up meeting, the need for mentoring, the readiness of firms for SPI, the role of the owner/manager, the advice provided by the assessors, and the need to record costs and benefits. Based on an analysis of the program and its outcomes, firms are warned not to undertake SPI if their operation is likely to be disrupted by events internal to the firm or in the external environment. Firms are urged to draw on the expertise of assessors and consultants as mentors, and to ensure the action plan from the assessment is feasible in terms of the timeframe for evaluation. The RAPID method can be improved by fostering a closer relationship between the assessor and the firm sponsor; by making more extensive use of feedback questionnaires after the assessment and follow-up meeting; by facilitating the collection and reporting of cost benefit metrics; and by providing more detailed guidance for the follow-up meeting.As well as providing an evaluation of the assessment model and method, the outcomes from this research have the potential to better equip practitioners and consultants to undertake software process improvement, hence increasing the success of small software development firms in domestic and global markets.     

Stochastic optimization of two-machine flow shop robotic cells with controllable inspection times: From theory toward practice

This paper considers the stochastic scheduling of a two-machine flow shop robotic cell with controllable inspection times. The inspection here is performed by a multi-function robot which can inspect identical parts with two alternatives for the inspection strategy: either at the back of the upstream machine or in transit between upstream and downstream machines. A characteristic of the inspection process is that its time is changed by altering the inspection cost. If the inspection time is reduced, more failures in parts may result regardless of when failures are identified. The challenge is therefore to find a suitable trade-off between inspection time and internal and external quality costs to increase reliability benefits. Initially, we complete a structural analysis of costs of quality and partial cycles, and then consider a simultaneous analysis of them. Then, through a sensitivity analysis, an epsilon-constraint method is used to find useful upper bounds on costs of quality and partial cycle times. The outcomes of the research are (i) an integrated framework for designing robotic cells with different levels of quality: low (e.g., disassembly industries), medium (e.g., automotive industries), and high (e.g., aerospace industries); and (ii) a sensitivity analysis for studying the impact of inspection strategies to assist production and quality managers with decision-making processes in stochastic environments. Finally, we extend the analysis to show that the given framework can be generalized for subtle variations found in practical applications with regard to (i) the quality of the part and (ii) accuracy of the inspection process. Robotic cells with scrap consideration and robotic cells with decreasing failure rates of the inspection process are studied as examples of the former, and robotic cells with either convex cost function or discrete cost function are studied for the latter.     

Productivity paradoxes revisited

The adoption of quality assurance methods based on software process improvement models has been regarded as an important source of variability in software productivity. Some companies perceive that their implementation has prohibitive costs, whereas some authors identify in their use a way to comply with software development patterns and standards, produce economic value and lead to corporate performance improvement. In this paper, we investigate the relationship between quality maturity levels and labor productivity, using a data set containing 687 Brazilian software firms. We study here the relationship between labor productivity, as measured through the annual gross revenue per worker ratio, and quality levels, which were appraised from 2006 to 2012 according to two distinct software process improvement models: MPS.BR and CMMI. We perform independent statistical tests using appraisals carried out according to each of these models, consequently obtaining a data set with as many observations as possible, in order to seek strong support for our research. We first show that MPS.BR and CMMI appraised quality maturity levels are correlated, but we find no statistical evidence that they are related to higher labor productivity or productivity growth. On the contrary, we present evidence suggesting that average labor productivity is higher in software companies without appraised quality levels. Moreover, our analyses suggest that companies with appraised quality maturity levels are more or less productive depending on factors such as their business nature, main origin of capital and maintained quality level.     

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.     

Assessing the cost-effectiveness of software reuse: A model for planned reuse

Information systems development is typically acknowledged as an expensive and lengthy process, often producing code that is of uneven quality and difficult to maintain. Software reuse has been advocated as a means of revolutionizing this process. The claimed benefits from software reuse are reduction in development cost and time, improvement in software quality, increase in programmer productivity, and improvement in maintainability. Software reuse entails undeniable costs of creating, populating, and maintaining a library of reusable components. There is anecdotal evidence to suggest that some organizations benefit from reuse. However, many software developers practicing reuse claim these benefits without formal demonstration thereof. There is little research to suggest when the benefits are expected and to what extent they will be realized. For example, does a larger library of reusable components lead to increased savings? What is the impact of component size on the effectiveness of reuse? This research seeks to address some of these questions. It represents the first step in a series wherein the effects of software reuse on overall development effort and costs are modeled with a view to understanding when it is most effective.     

Achieving offshore software development success: An empirical analysis of risk mitigation through relational norms

Behavioral risks such as shirking and misappropriation of information assets are more prominent in offshore software development context and could adversely affect offshore outsourcing success. This paper studies the moderating effects of different relational norms on the link between behavioral risks and offshore software development success. We focused on three major modes of relational norms: norm of flexibility, norm of solidarity and norm of information exchange. Using PLS path modeling to test a sample of 40 US corporations engaged in offshore software development, we found that the norms of solidarity and flexibility reduced the negative effects shirking risk on offshore software development success. Our results suggest that client firms shall benefit by forming the right mode of relational norms to achieve offshore success.     

Open to a Select Few? Matching Partners and Knowledge Content for Open Innovation Performance

The purpose of the paper is to illuminate the costs and benefits of crossing firm boundaries in inbound open innovation (OI) by determining the relationships among partner types, knowledge content and performance. The empirical part of the study is based on a survey of OI collaborations answered by R&D managers in 415 Italian, Finnish and Swedish firms. The results show that the depth of collaboration with different partners (academic/consultants, value chain partners, competitors and firms in other industries) is positively related to innovation performance, whereas the number of different partners and size have negative effects. The main result is that the knowledge content of the collaboration moderates the performance outcomes and the negative impact of having too many different kinds of partners. This illustrates how successful firms use selective collaboration strategies characterized by linking explorative and exploitative knowledge content to specific partners, to leverage the benefits and limit the costs of knowledge boundary crossing processes.     

Cloud computing adoption and usage in community colleges

Cloud computing is gaining popularity in higher education settings, but the costs and benefits of this tool have gone largely unexplored. The purpose of this study was to examine the factors that lead to technology adoption in a higher education setting. Specifically, we examined a range of predictors and outcomes relating to the acceptance of a cloud computing platform in rural and urban community colleges. Drawing from the Technology Acceptance Model 3 (TAM3) (Venkatesh, V. and Bala, H., 2008. Technology Acceptance Model 3 and a research agenda on interventions. Decision Sciences, 39 (2), 273–315), we build on the literature by examining both the actual usage and future intentions; further, we test the direct and indirect effects of a range of predictors on these outcomes. Approximately 750 community college students enrolled in basic computing skills courses participated in this study; findings demonstrated that background characteristics such as the student's ability to travel to campus had influenced the usefulness perceptions, while ease of use was largely determined by first-hand experiences with the platform, and instructor support. We offer recommendations for community college administrators and others who seek to incorporate cloud computing in higher education settings.     

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.