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.     

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.     

Knowledge transfer in offshore outsourcing software development projects: an analysis of the challenges and solutions from German clients

Knowledge transfer is a critical factor in ensuring the success of offshore outsourcing software development projects and is, in many cases, neglected. Compared to in‐house or co‐located projects, however, such globally distributed projects feature far greater complexity. In addition to language barriers, factors such as cultural differences, time zone variance, distinct methods and practices, as well as unique equipment and infrastructure can all lead to problems that negatively impact knowledge transfer, and as a result, a project's overall success. In order to help minimise such risks to knowledge transfer, we conducted a research study based on expert interviews in six projects. Our study used German clients and focused on offshore outsourcing software development projects. We first identified known problems in knowledge transfer that can occur with offshore outsourcing projects. Then we collected best‐practice solutions proven to overcome the types of problems described. Afterward, we conducted a follow‐up study to evaluate our findings. In this subsequent stage, we presented our findings to a different group of experts in five projects and asked them to evaluate these solutions and recommendations in terms of our original goal, namely to find ways to minimise knowledge‐transfer problems in offshore outsourcing software development projects. Thus, the result of our study is a catalog of evaluated solutions and associated recommendations mapped to the identified problem areas.     

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.     

The realignment of offshoring frame disputes (OFD): an ethnographic ‘cultural’ analysis

In Information Systems (IS) research on cross-cultural issues, cultural categories are typically introduced as analytical labels that explain why and how organizational groups in different parts of the world act and think differently. However, broad cultural categories can also be discursively mobilized by organizational members as strategic adaptive resources. Drawing on an ethnographic study of offshoring frame disputes (OFD) in an Indian subsidiary unit of a large Western information technology (IT) organization, this paper explores how members actively invoke a series of beliefs about Western culture and implicitly position them as the binary opposite of Eastern (or Indian) culture. The findings demonstrate how the mobilization of such beliefs eventually plays a vital role in the reconciliation of four different types of OFD. Drawing on this analysis, I build a social–psychological process model that explains how frame extensions trigger a cognitive reorganization process, leading to the accomplishment of OFD realignment. The paper argues that discursively invoked binary cultural categories help maintain non-confrontational definitions of situations and sustain working relationships in IT offshoring environments. Furthermore, interpretations linked to cultural notions seem to reflexively take the offshore–onshore power differentials into account.     

Towards the development of a social capital approach to evaluating change management interventions

Many of the issues associated with the inefficiency and ineffectiveness of information systems development (ISD) have been attributed to the poor relationship between business and IT colleagues. Relational issues relating to collaboration and communication before, during and after ISD lead to dissatisfaction with information systems and services. To address these relational issues, many organisations have introduced relationship management initiatives (RM). Yet, their effects have been debatable. This paper argues that this is partly because there is no appropriate evaluative framework for RM. In response, this paper proposes a framework, based on social capital theory, for conceptualising the effects of change management interventions in the poor relationship between business and IT colleagues. The research adopts a case study approach to this end. It explores the strengths and limitations of the approach and suggests new directions for its further development. Overall, the research shows that there is a potential merit in using a social capital approach for the evaluation of change management interventions that aim to improve the collaboration between business and IT, during ISD and beyond.     

Can technology build organizational social capital? The case of a global IT consulting firm

Knowledge management (KM) and knowledge management systems (KMS) have been positioned as strategies and tools that enable organizations to create and transfer knowledge in order to sustain competitive advantage. While KM as a strategy gained legitimacy, KMS have struggled to show a causal relationship to knowledge creation and knowledge transfer. KMS contribution to the economic performance of organizations has been harder to prove, mainly because of a lack of collection of data and thus analysis of knowledge metrics. This has lead to an unjustifiable move to underplay the role of technology in creating and transferring knowledge. We strived to revive interest in KMS by exploring their ability to accumulate social capital and showing its effect on the creation and transfer of knowledge. We posited that social capital was the mediating factor between KMS and knowledge creation and transfer and hypothesized that: (1) KMS will positively affect an organization's ability to build social capital, and that (2) social capital will enhance a firm's ability to create and transfer knowledge. Qualitative data collected from a multinational IT consulting firm was used to validate the framework.     

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.     

Why college undergraduates choose IT: a multi-theoretical perspective

In this paper, we study factors that may influence college undergraduates’ decisions to pursue a major in information technology (IT). We develop and test a theoretical model based on social cognitive career theory and the theory of planned behavior. Data were collected through a multi-section survey given to college undergraduates at four large universities in the southeastern United States. We found that college undergraduates with positive attitudes towards IT careers and high perceived behavioral control (PBC) regarding IT majors had a greater intention of pursuing IT majors. The study also found positive links between self-evaluating outcome expectations (SEOE) and attitudes towards an IT career. In addition, males were more likely to choose IT than females, as they scored higher on computer self-efficacy, SEOE, attitudes towards IT careers, and PBC. Future research may wish to explore this disparity and may also explore factors influencing outcome expectations and attitudes. Practical recommendations include educational and media outreach efforts aimed at emphasizing the vitality of the IT job market and the interpersonal aspects of IT.     

From offshore outsourcing to insourcing and partnerships: four failed outsourcing attempts

Most large software companies are involved in offshore development, now small- and medium-sized companies are starting to undertake global sourcing too. Empirical research suggests that offshoring is not always successful; however, only a few comprehensive failure stories have been reported. The objective of our study has been to understand why small and medium-sized companies terminate their offshore outsourcing relationships and what alternative arrangements they undertake afterwards. Therefore, we designed a multiple case study of four medium-sized Scandinavian software companies that have terminated their offshore outsourcing relationships. Our results are based on data collected through semi-structured interviews, informal dialogues and analysis of company documents. We found that all companies terminated their offshore contracts because of low quality of the software being developed. This was caused by an inability to build the necessary human and social capital. The companies reported challenges with domain knowledge, a lack of commitment of external developers, cultural clashes, poor communication and high turnover, which only amplified the problems. After termination all four companies changed their sourcing strategy from offshore outsourcing to offshore insourcing and partnerships. We conclude that successful offshore software development requires a change from a cost-driven focus to an intellectual capital-driven focus. To prevent continuous investments into contracts that are destined to fail, companies should look for signs of escalating commitments and terminate relationships that cannot be corrected. Those companies that choose outsourcing shall also take into account that mismatch between the size of the offshore contract relative to the vendor may have a negative effect on a relationship.     

Us and them: a social capital perspective on the relationship between the business and IT departments

In this paper, a social capital perspective is applied to the relationship between the IT department and the Business organization. IT and Business are conceptualized as different occupational communities, with different understandings of their work. Our focus is on the level of social capital and the process of knowledge sharing between these occupational communities. We analyze the role that these factors play in reaching a mutual understanding within the process of IS development, and the influence this has on the perceived performance of the IT organization. Our study, combining qualitative and quantitative methods, points out that a lack of social capital (structural, relational as well as cognitive) can serve as an explanation for the often problematic relationship between these communities. Our analyses also show that social capital is especially relevant for the Business organization's perception of IT performance, whereas the IT department's perception is that performance is primarily dependent on the exchange of information.     

A socio‐cognitive interpretation of the potential effects of downsizing on software quality performance

Organizational downsizing research indicates that downsizing does not always realize its strategic intent and may, in fact, have a detrimental impact on organizational performance. In this paper, we extend the notion that downsizing negatively impacts performance and argue that organizational downsizing can potentially be detrimental to software quality performance. Using social cognitive theory (SCT), we primarily interpret the negative impacts of downsizing on software quality performance by arguing that downsizing results in a realignment of social networks (environmental factors), thereby affecting the self‐efficacy and outcome expectations of a software professional (personal factors), which, in turn, affect software quality performance (outcome of behaviour undertaken). We synthesize relevant literature from the software quality, SCT and downsizing research streams and develop a conceptual model. Two major impacts of downsizing are hypothesized in the conceptual model. First, downsizing destroys formal and informal social networks in organizations, which, in turn, negatively impacts software developers' self‐efficacy and outcome expectations through their antecedents, with consequent negative impacts on software development process efficiency and software product quality, the two major components of software quality performance. Second, downsizing negatively affects antecedents of software development process efficiency, namely top management leadership, management infrastructure sophistication, process management efficacy and stakeholder participation with consequent negative impacts on software quality performance. This theoretically grounded discourse can help demonstrate how organizational downsizing can potentially impact software quality performance through key intervening constructs. We also discuss how downsizing and other intervening constructs can be managed to mitigate the negative impacts of downsizing on software quality performance.     

Offshoring: what can go wrong?

Offshoring has sustained much criticism, mainly over the issue of whether shipping IT work abroad is good for the US as a whole. Does it benefit a US firm to offshore its IT work - specifically software development and maintenance? This paper discusses several reasons for firms to be wary of this practice. For some managers, these considerations might tip the balance against offshoring. For those who wish to offshore anyway, this article can serve as a map of the pitfalls to try to avoid.     

The misery of digital organisations and the semiotic nature of IT

Contrary to common belief, IT systems often disappoint the expectations to increase productivity and flexibility of work and value creation processes. Moreover, most IT design and implementation projects still fail or burst time and cost budgets to a high extent. After presenting significant empirical evidence for these phenomena, the paper reflects on the reasons for their persistence by developing a semiotic perspective on the processes of dealing with computer artifacts in organisations. This semiotic view allows understanding the processes of designing, implementing and using IT systems as efforts of structuring social practices in organisations. A typical case of enterprise resource planning system implementation illustrates this. Finally, a number of guidelines for an improved practice of designing and appropriating IT systems for effective use in organisations are derived from the theoretical reflections.     

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.     

Organizational responsiveness to anti-offshoring institutional pressures

We explore the extent of organizational responsiveness to pressures from institutional constituents against offshoring of information technology and business process services. Drawing on a theoretical framework that integrates institutional and strategic explanations, we proposed that organizational responsiveness to anti-offshoring institutional pressures is a function of both the characteristics of such pressures as well as organizations’ prior success with offshoring. Results based on survey data from 84 offshoring client organizations indicate the following: Both greater organizational expectations of enhanced social legitimacy and mimetic influences from other organizations led to greater organizational responsiveness. Both conflict of institutional expectations with organizational goals and greater regulatory environment uncertainty reduced responsiveness. Organizational dependence on a key pressuring constituent had no effect. Surprisingly, organizational success with offshoring had no direct effect on responsiveness and we examine why this might be so. However, it attenuated the otherwise strong positive effect of social legitimacy and exacerbated the negative effect of regulatory environment uncertainty.     

Social capital expectation and usage of social media: the moderating role of social capital susceptibility

This study aims to identify the motivations of social media users who click ‘like’ to the post of their friends. We posit that this behaviour is not solely based on an instant feeling or reaction to a post, but a more complicated action that involves calculation and expectation of the future social media use. We first apply social capital theories to identify the types of expectations, and then differentiate these expectations based on the communication styles of social media where private and public relationships coexist. From these, we develop a social capital expectation matrix in the context of social media. In the research model, we discuss how these social capital expectations motivate people to use social media, including the moderating effects of social capital susceptibilities, based on expectancy theory of motivation. To validate our model, data collected from 291 social media users are analysed. This result confirms that people click likes to share their interests and display their network to others. Conversely, the relational dimensions of social capital including capital recompense and social inclusion exerted significant interaction effects only when they were considered along with capital susceptibilities.     

Interplay of prior knowledge,self‐regulation and motivation in complex multimedia learning environments

This study examined the direct and indirect effects of medical clerkship students' prior knowledge, self‐regulation and motivation on learning performance in complex multimedia learning environments. The data from 386 medical clerkship students from six medical schools were analysed using structural equation modeling. The structural model revealed that medical students' prior knowledge directly positively affected their learning outcome, self‐efficacy and performance approach goal orientation. The learners' self‐regulation had a significant positive direct effect on learning outcome. The learners' mastery goal orientation directly affected their learning outcome. Interestingly, inconsistent with our hypothesis, the learners' performance approach goal orientation showed a significant negative direct effect on learning outcome, and performance avoidance goal orientation had a significant positive effect on learning outcome. These findings help develop a more comprehensive understanding of the role of individual characteristics on learning performance of complex tasks in multimedia learning environments.     

Knowledge sharing using IT service management tools: conflicting discourses and incompatible practices

ICT applications that include functionality for knowledge sharing are routinely used by IT service providers even though their implementation is known to be problematic and the reasons for such problems not well understood. To shed light on the issue, we collected data at two organisations where managers had provided IT service support workers with IT service management (ITSM) tools incorporating functionality for knowledge sharing. Using critical discourse analysis and rhetorical analysis techniques, we contrasted primary data representative of IT service support practice with other primary and publicly available secondary data reflecting the prevailing discourse of IT service managers. Through this analysis, we identify an apparent dissonance between ITSM managerial and worker discourses that reflect opposing epistemologies. Managers are optimistic about the benefits of ICT‐based knowledge sharing, whereas the practice of workers is revealed to privilege self‐reliance and interpersonal knowledge sharing. By taking a dual, management–worker, perspective, we provide fresh insight into why ICT‐based knowledge sharing is problematic. As a theoretical contribution, we propose that dysfunctional intra‐organisational conflict can arise where incompatible management and worker practices become institutionalised through the simultaneous diffusion of conflicting discourses.     

Creating Better Governance of Offshore Services

Abstract

Given the extensive history that companies now have with offshore outsourcing and the critical role that it continues to play, it is vital that we synthesize the many lessons learned and formalize them into a workable and flexible governance model. A review of the leading academic and practitioner literature on offshore outsourcing provided the basis for development of nine attributes of best practices/maturity. These attributes were used further to propose a framework for mature offshore outsourcing governance. We conducted a case study of a leading U.S.-headquartered multinational company and its major offshore vendors, some of whom the company had been involved in offshoring with for many years. By juxtaposing the case study experiences with the disparate literature on offshore outsourcing and IT governance, a proposed model for mature offshore outsourcing governance emerged.