An empirical comparison of pricing models in information technology service outsourcing in Indian context

2015 ◽  
Vol 22 (4) ◽  
pp. 697-710 ◽  
Author(s):  
Daisy Mathur Jain ◽  
Reema Khurana
Keyword(s):  
Information Technology ◽  
Theory And Practice ◽  
It Outsourcing ◽  
Empirical Comparison ◽  
Pricing Models ◽  
Service Outsourcing ◽  
Content Type ◽  
It Service ◽  
Fixed Price ◽  
Practical Implications

Purpose – The information technology (IT) outsourcing has been inexorably growing in spite of its downsides. The main reasons are financial gains and cost reductions, as well as it allows companies to focus on their core selling areas. Within IT outsourcing, offshoring has become a big success because it greatly reduces costs. Countries like India, China and Philippines are attracting a lot of IT outsourcing work. In order to save costs, companies have to work out the best pricing models with the vendors so enable profitability at both ends. The main pricing models prevalent in the industry are Time and Material (TnM) and Fixed Time Fixed Price (FTFP) alternately also referred as Fixed Price. There are various other pricing models now, which are mainly variations of these. The purpose of this paper is to show an empirical comparison between these models from the vendor’s perspective to see which of them has greater acceptability. Design/methodology/approach – The paper is an empirical paper in which literature survey has been done to study various pricing models in the IT service outsourcing industry, on the basis of same, two most used models have been identified, namely, FTFP and TnM, hypothesis were formulated, Likert scale questionnaire was formed. Subsequently data were collected and Wilcoxon signed-rank test was carried out to compare the variables defining the FTFP and TnM models of pricing. In total, 68 firms were targeted and 120 responses were received. The two models were studied against parameters like usage, profitability, risk, deliveries meeting project schedule, good quality code, the pricing model used by respondents’ majority of times and whether either of them lead to increasing costs. Findings – This study has found that TnM is less risky for vendors, more profitable and vendors are able to manage better quality delivery compared to FTFP. Also it has been statistically proven that the pricing models TnM and FTFP do not impact the usage and schedules in any way. These are important findings as there have been no earlier research papers which have compared the pricing models with reference to Indian IT service outsourcing industry. Research limitations/implications – The two major pricing models TnM and FTFP are studied in the paper below. Data were gathered from 68 companies. As per results, TnM is more profitable, less risky, does not lead to increasing cost and produces good quality code as compared to FTFP also it has been statistically proven that the pricing models TnM and FTFP do not impact the usage and schedules in any way. The implications bridge a gap between theory and practice, as theoretically many pricing models exist, however, what are practical applications and justification vis-à-vis different aspects has not been approached statistically so far in the given context. Further research can be done on other variations of pricing models and to establish which one should be the preferred model and in which circumstances. Practical implications – There are major practical implications of the paper as it fills the gap between the theoretical discussions of pricing and identifies and statistically proves importance of various aspects of pricing in practice. Originality/value – The paper is original and adds value in terms of advising the IT service outsourcing companies as to which pricing models to use.

Impact of pricing and outsourcing models on Indian information technology service outsourcing

2015 ◽  
Vol 22 (4) ◽  
pp. 610-623 ◽  
Author(s):  
Daisy Mathur Jain ◽  
Reema Khurana
Keyword(s):  
Information Technology ◽  
Statistical Tests ◽  
Pricing Model ◽  
Pricing Models ◽  
It Industry ◽  
Service Outsourcing ◽  
Content Type ◽  
It Service ◽  
The Impact ◽  
Practical Implications

Purpose – The information technology (IT) industry has grown owing to the increase in IT outsourcing prompted by the need for cost reductions in organizations. The IT industry contracts are based on pricing models, which establish the terms and conditions of payment to be made to vendors by clients. The pricing models followed in the industry are mainly Fixed Time Fixed Price (FTFP) and Time and Material (TnM) and the remaining are mostly variations of these. Using the information collected from vendors, the purpose of this paper is to draw a comparison between these pricing models to see which one is more acceptable to vendors along with researching on the reasons behind that. The outsourcing engagement is also based on a set of processes to be used during the contract time and that is known as the Outsourcing Model (OM) being used. This research also derives how pricing models, OMs and Client Vendor Relationship (CVR) being developed are related. Design/methodology/approach – Hypothesis have been formulated on the basis of the literature survey conducted by the authors, subsequently questionnaire was formulated and data were collected from – a total of 500 people were targeted, out of which 70 people responded. Out of these 70 only 50 were usable responses. The respondents were at the manager and above level in different organizations classified on the basis of number of employees. Statistical tests were conducted on these data to check the reliability, prove the hypothesis and establish the mediation and moderation relationships between the pricing model, OM and CVR. Findings – The following paper has established through statistical analysis which pricing model is more befitting to the IT service outsourcing industry and has also demonstrated the moderation and mediation relationship between pricing model, OM and CVR variables. Research limitations/implications – The major reserach limitation is that it is for only IT vendors in Indian geography. The research can be extended to different businesses and geographies. Practical implications – The paper has practical implications for the IT service outsourcing industry in India and for their clients to understand the comparison between the pricing models and to study the impact of pricing and OMs on the CVRs. Originality/value – The research presented is original as no similar work has been found to be published in the journals so far specifically in the Indian context.

How strategic governance boosts success in IT outsourcing

2017 ◽  
Vol 33 (10) ◽  
pp. 20-22
Keyword(s):  
Information Technology ◽  
Best Practices ◽  
Case Studies ◽  
Design Methodology ◽  
Reading Time ◽  
Collaborative Governance ◽  
It Outsourcing ◽  
Content Type ◽  
Pertinent Information ◽  
Practical Implications

Purpose This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies. Design/methodology/approach This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context. Findings A set of strategies and best practices for establishing collaborative governance mechanisms within a strategic offshore Information technology outsourcing (ITO). Practical Implications The paper provides strategic insights and practical thinking that have influenced some of the world’s leading organizations. Originality/value The briefing saves busy executives and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy-to-digest format.

Quality of relationship on information technology outsourcing for organizational success in hospitality industry

2014 ◽  
Vol 5 (3) ◽  
pp. 229-244 ◽  
Author(s):  
Ali Sukru Cetinkaya ◽  
Mehmet Ergul ◽  
Muzaffer Uysal
Keyword(s):  
Information Technology ◽  
Service Quality ◽  
Organizational Performance ◽  
Relationship Quality ◽  
Hospitality Industry ◽  
It Outsourcing ◽  
Content Type ◽  
It Service ◽  
Outsourcing Success ◽  
The Relationship

Purpose – This paper aims to investigate the effects of vendor – client relationship on organizational success in the hospitality industry. The relationship between vendors and clients regarding information technology outsourcing does not always go in harmony. In the viewpoint of hospitality practitioners, information technology (IT) providers do not necessarily abide by the given promises stated on contracts, all the time. The service flows, which are mostly generated by the lack of quality relationship between vendors and clients directly affect hotels’ organizational performance. Design/methodology/approach – Data were collected by an online survey and analyzed using multivariable statistics (path analysis) to determine the effects of service quality and relationship quality on outsourcing success, and its effect on organizational performance. Data from 102 valid responses received from ten different countries, representing 230 hotels in total were analyzed. Findings – Service quality and relationship quality, which are two dimensions of outsourcing relationships, were found to be positively related to outsourcing success (r = 0.60 and 0.70, p < 0.01, respectively) and intangible organizational performance (r = 0.20, p < 0.05; 0.26 and 0.27, p < 0.01, respectively). Research limitations/implications – The research was designed to investigate the IT outsourcing service receiver’s (client) perspective. The IT service provider’s (vendor) perspective is disregarded. Disturbance results are very high (i.e. more than 0.95). This may well be the case that certain facets of the outsourcing success construct are not adequately represented by the chosen indicators. Research results may reveal an idea about the research subject, in general, but may not be generalized to the whole industry due to its sampling size. Finally, the survey was conducted online, and all online research restrictions were applicable to this research such as receiving very limited response rates. Practical implications – The results of this research provide important information for practitioners in the hospitality industry and IT service providers. Relationship quality between vendor and client was observed to be the most determinant factor in IT outsourcing success. Social implications – The proposed model may well serve as a framework for further examining mediating and possible moderating variables. Originality/value – There is limited research in the previous literature investigating the relationship between information technology vendor and client, in terms of service quality and relationship quality in hospitality industry. This paper may serve to fill in this gap.

Dave Snowden on KM and big data/analytics: interview with David J. Pauleen

2017 ◽  
Vol 21 (1) ◽  
pp. 12-17 ◽  
Author(s):  
David J. Pauleen
Keyword(s):  
Big Data ◽  
Data Analytics ◽  
Big Data Analytics ◽  
Theory And Practice ◽  
Content Type ◽  
Face To Face ◽  
The Relationship ◽  
A Company ◽  
Practical Implications ◽  
Scientific Officer

Purpose Dave Snowden has been an important voice in knowledge management over the years. As the founder and chief scientific officer of Cognitive Edge, a company focused on the development of the theory and practice of social complexity, he offers informative views on the relationship between big data/analytics and KM. Design/methodology/approach A face-to-face interview was held with Dave Snowden in May 2015 in Auckland, New Zealand. Findings According to Snowden, analytics in the form of algorithms are imperfect and can only to a small extent capture the reasoning and analytical capabilities of people. For this reason, while big data/analytics can be useful, they are limited and must be used in conjunction with human knowledge and reasoning. Practical implications Snowden offers his views on big data/analytics and how they can be used effectively in real world situations in combination with human reasoning and input, for example in fields from resource management to individual health care. Originality/value Snowden is an innovative thinker. He combines knowledge and experience from many fields and offers original views and understanding of big data/analytics, knowledge and management.

Striving for inclusion: evidence from China using a latent profile approach

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Jiaojiao Qu ◽  
Shuming Zhao ◽  
Yixuan Zhao
Keyword(s):  
Latent Profile Analysis ◽  
Profile Analysis ◽  
Theory And Practice ◽  
Organizational Leaders ◽  
Content Type ◽  
Highly Educated ◽  
Starting Point ◽  
Profile Approach ◽  
Practical Implications ◽  
Latent Profile

Purpose This study aims to identify profiles of inclusion in the workplace to provide evidence-based guidance to build an inclusive organization. Design/methodology/approach Latent profile analysis (LPA), a person-centred classification analytical tool, was applied to determine the subtypes of inclusion with Mplus 7.4, using two-wave data collected from 368 employees in 8 Chinese companies. Findings Three subgroups were identified: identity inclusion group (the highest level of inclusion, 34.0%), value inclusion group (the moderate level of inclusion, 47.5%) and low inclusion group (the lowest level of inclusion, 18.5%). The findings indicate that groups with male, aged and highly educated members, as well as members from developed areas generally tend to feel more included and greater inclusion relates to more favourable outcomes and fewer detrimental consequences. Research limitations/implications As this study was conducted only in China, the results may not be generalizable to non-Chinese contexts. Practical implications The results may help organizational leaders develop a deeper understanding of the significance and the crux of inclusion. To address the duality of workforce diversity, managers can take initiatives to create an inclusive organization. To achieve inclusion, managers should pay attention to ways of improving the perceptions of inclusion among all employees. Originality/value This is among the first studies to identify the variants in inclusion in China using LPA. It reveals the subtypes and characteristics of inclusion and can serve as a starting point to explore how to realize organizational inclusion in theory and practice.

Customer engagement and value co-creation/destruction: the internal fostering and hindering factors and actors in the tourist/hotel experience

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Clement Nangpiire ◽  
Joaquim Silva ◽  
Helena Alves
Keyword(s):  
Design Methodology ◽  
Hospitality Industry ◽  
Document Analysis ◽  
Tourism Industry ◽  
Theory And Practice ◽  
Customer Engagement ◽  
Analysis Framework ◽  
Content Type ◽  
Depth Interviews ◽  
Practical Implications

PurposeThe customer as an active and engaged value co-creator raises new challenges for theory and practice, especially in the hospitality industry. However, the connection between engagement and co-creation is little studied in the hotel/tourism literature. This paper proposes a connection between customer engagement (CE) and value co-creation frameworks to ascertain and depict the internal actors' activities and factors that foster or hinder guests' co-creation and destruction of value.Design/methodology/approachThe researchers used qualitative methods (35 in-depth interviews, document analysis and four observation sessions) in seven regions of Ghana to explore the customer's perspective. Data were analyzed with NVivo11 within a thematic analysis framework.FindingsThe findings suggest that positive and negative engagement fosters or hinders guests' interactions, which lead to value co-creation or destruction. The research also discovered that negative interactions occasioned by any factor or actor trigger value destruction at multiple stages of the experience journey.Practical implicationsIndustry players can use the framework developed to assess their businesses, explore and reflect on the proposed value they aim to generate, and thus be more aware of how they can better facilitate value co-creation with their consumers and avoid value destruction.Originality/valueThis research proposes a novel connection between customer interactions, engagement and value co-creation to ascertain and depict the internal actors' activities and factors that foster or hinder customers' experience in the hotel/tourism industry.

A tabulation of information technology and consumer behavior in hospitality revenue management research

2020 ◽  
Vol 11 (3) ◽  
pp. 575-587
Author(s):  
Tevfik Demirciftci ◽  
ChihChien Chen ◽  
Mehmet Erdem
Keyword(s):  
Information Technology ◽  
Consumer Behavior ◽  
Revenue Management ◽  
Design Methodology ◽  
Service Providers ◽  
Business Environment ◽  
Content Type ◽  
The Past ◽  
Consumer Perspective ◽  
Practical Implications

Purpose The purpose of this paper is to present an overview of revenue management (RM) studies that focus on information technology (IT) and consumer behavior published between 2008 and 2018. Design/methodology/approach In total, 112 articles published in 17 journals were identified and analyzed. Findings This study shows the importance of IT and RM and focuses on the consumer perspective. It also emphasizes that technology is not the enemy of humans: it complements and adds value to their existing jobs. Research limitations/implications Book chapters and conference proceedings related to IT and RM were not included in this study. Besides, only journal papers published in English were included in the study. The categorizing of subjects can be seen as subjective. Practical implications This study helps researchers discover articles from 2008 to 2018 and helps hospitality executives interested in RM technologies from the demand side to use these findings in their business environment. Originality/value Based on the interaction between service providers (hotels) and users (consumers) on IT and RM platforms, the paper identified eight key components that have been relevant over the past decade.

Towards the distinctive Islamic mode of leadership in business

2015 ◽  
Vol 34 (8) ◽  
pp. 882-900 ◽  
Author(s):  
Aikaterini Galanou ◽  
Dalia Abdelrahman Farrag
Keyword(s):  
Leadership Style ◽  
Structural Equation ◽  
Organizational Innovation ◽  
Large Body ◽  
Theory And Practice ◽  
Content Type ◽  
Area Of Interest ◽  
Transactional Leadership Style ◽  
Islamic Leadership ◽  
Practical Implications

Purpose – The paper provides some fundamental observations on leadership from an Islamic perspective and the Islamic revealed knowledge. The purpose of this paper is to measure the association between Islamic leadership and the most common western forms of leadership namely; transactional, transformational, authentic, and ethical leadership styles as well as its relationship on leader’s effectiveness and organizational innovation. Design/methodology/approach – An empirical investigation was conducted using portrait value questionnaire recommended by Schwartz (1994b), confirmatory factor analysis (CFA) followed by structural equation modelling (SEM). Findings – The results indicated that Islamic leadership is positively and significantly associated with perception of leader effectiveness and innovation outcomes. In addition the findings revealed that Islamic leadership is positively correlated with transformational, ethical, and authentic leadership as well and not with the transactional leadership style. Practical implications – Among the practical implications of this research is that while a large body of leadership research has adopted a variation of leadership theories, our results suggest that we should seize to pay attention to the influential Islamic leadership. Originality/value – The originality of this paper is that it extends scholarly understanding on Islamic perspectives of management which is a relatively new and growing area of interest for academics and practitioners, in terms of both theory and practice.

Roadmap to change: emerging roles for information professionals

2006 ◽  
Vol 55 (4) ◽  
pp. 267-277 ◽  
Author(s):  
Charles Obiora Omekwu ◽  
Uwem Eteng
Keyword(s):  
Information Technology ◽  
Knowledge Economy ◽  
Design Methodology ◽  
Information Service ◽  
Historical Knowledge ◽  
Organizational Survival ◽  
Content Type ◽  
Information Professionals ◽  
Information Work ◽  
Practical Implications

PurposeTo map out routes along which the library and information profession can chart its future development.Design/methodology/approachA literature‐based opinion piece which looks at “roadmaps to change” in library and information work from the historical, knowledge economy and information technology perspectives.FindingsChange is inevitable for organizational survival and the maintenance of professional relevance.Practical implicationsLibrarians and information professionals are by training positioned to continue to make a difference in information handling and management both now and in the future. The paper recommends the forms of repositioning that are vital for them if they are to continue to be relevant in information service delivery.Originality/valueNew and emerging roles for the profession are highlighted from various authors and authorities in the field.

Taking Cisco into a new era

2015 ◽  
Vol 31 (11) ◽  
pp. 1-3
Keyword(s):  
Information Technology ◽  
Design Methodology ◽  
Reading Time ◽  
Diverse Range ◽  
Business World ◽  
Content Type ◽  
New Era ◽  
Competitive Edge ◽  
Pertinent Information ◽  
Practical Implications

Purpose – This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies. Design/methodology/approach – This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context. Findings – One of the most predictable things about today’s business world is its unpredictability. Hence, even the largest operators have to frequently evolve to retain their competitive edge. But that’s all in a day’s work for the folks at Cisco Systems. You don’t get to be world leader in any industry for nothing. So to achieve that position in such a competitive and rapidly changing sector as technology is perhaps even more remarkable. Since its inception in late 1984, the company has been driven by a desire to, in its own words, “connect the unconnected”. Few would argue that Cisco constantly achieves this objective. This innovative firm’s diverse range of customers have successfully navigated various shifts within communications and information technology thanks to its design, manufacture and supply of different groundbreaking solutions. Practical implications – The paper provides strategic insights and practical thinking that have influenced some of the world’s leading organizations. Originality/value – The briefing saves busy executives and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy-to-digest format.

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