Analysis of Success Level and Supporting Factors of IT Outsourcing Implementation: A Case Study at PT Bank Bukopin Tbk

Author(s):  
Rizqy Puspitasari ◽  
Satrio Baskoro Yudhoatmojo ◽  
Ika Chandra Hapsari ◽  
Achmad Nizar Hidayanto
Keyword(s):  
Author(s):  
Georg Hodosi ◽  
Robert Kaye ◽  
Lazar Rusu

In this chapter, the Success Factors (SFs) for IT Outsourcing (ITO) are explored. The research literature has a bias towards large companies, neglecting medium-sized companies. Moreover, no comparative studies regarding the SFs were found related to the size of companies. These circumstances force medium-sized buyers to turn to practitioner literature, which is dominated by guidelines produced by the providers. Therefore, this chapter identifies the research problem: the lack of knowledge about ITO SFs for medium size companies, including whether SFs for large companies, are applicable for medium-sized ones as well. The used case study research shows that medium-sized companies should use the SFs from large companies. However, 2 out of 11 studied SFs have better efficiency for large companies. This result helps medium-sized companies' ITO decision makers understand the SFs of ITO and thus closes the research gap. Implementing the right SFs should improve the ITO performance.


Author(s):  
Mary Anne Atkinson ◽  
Ozden Bayazit ◽  
Birsen Karpak

Decisions related to managing IT resources - which resources to keep in-house and which resources to outsource - are critical to business success. The goal of this paper is to show the usefulness of the Analytic Hierarchy Process (AHP) as a decision-making tool for IT sourcing decisions, based on an analysis of factors that recent literature found to be associated with IT sourcing risk. Although the AHP previously has been suggested for IT outsourcing decision making, this study is the first to consider evaluating the risks of offshore outsourcing, rural outsourcing, and in-sourcing IT processes by using the AHP. From the perspective of the expert decision maker, three IT sourcing strategies were evaluated with respect to 58 criteria. The case study example presented in this paper shows the effectiveness of the AHP to support management for this business decision. The authors' results show that a systematic approach to analyzing outsourcing can reduce the uncertainty and risk that is common in such decisions.


Author(s):  
Oleksandra S. Yavorska ◽  
Vitaliy M. Kosovych ◽  
Ihor Y. Boiko ◽  
Leonid L. Tarasenko ◽  
Iryna I. Shpuhanych

Fast improvement of the IT field requires relevant safety of intellectual assets rights. The legal protection of laptop applications, software programs and foreign legal practices is a contentious issue. With the rapid development of the IT sector within the international context, the issues of copyright safety, patenting and non-disclosure of personal data have gained urgency. The research methodology involved the use of methods of analysis and synthesis, logical and system - structural analysis, control methods, structural and functional analysis in combination with the method of case study and the method of content analysis. The article comprehensively analyses the modern perspective of intellectual belongings proper and copyright in IT outsourcing. The scope of unconventional challenges in the sphere of copyright safety inside the area of IT sphere are exemplified using the case of Ukraine. The case addresses opportunities to enhance the regulatory framework for copyright safety of experts engaged in IT outsourcing. It is stressed that the existing legal procedures and methods are slower in responding to changes in the field of IT outsourcing than the world's quickest trends in this sphere.


Author(s):  
Georg Hodosi ◽  
Sanaz Manavi ◽  
Lazar Rusu

In this paper the Risk Factors (RFs) in IT Outsourcing (ITO) theories from a service buyer perspective are explored. A comparative study about how Transaction Cost Theory (TCT), Core Competency Theory (CCT) and Agency Theory (AT) cover the RFs has been performed. A framework describing, how the theories cover the RFs has been developed and tested using a case study research methodology. The interviews with companies for testing the framework have been used to get an indication about which ITO theories the decision makers are using in their ITO. This study shows that TCT fully covers all RFs, AT covers almost all and CCT has the lowest coverage. The theories, which are used by the ITO decision makers, could only partially be answered. Risk handling could not be entirely mapped to the theories. Risk and risk mitigation were the main concerns for some of the interviewees, CCT for some others. This study recommends using both TCT and CCT for a successful ITO.


Author(s):  
Michael D. Dorsey ◽  
Mahesh S. Raisinghani

IT governance or IT outsourcing both have their own unique benefits but the decision to choose one over other is not always so clear. This chapter examines the impact of globalization of software development and localization of service delivery in the offshore software development and outsourcing services sector. A case study is used to illustrate the key ideas that helped contribute to a successful IT project that was outsourced by a US organization to a transnational IT outsourcing services provider based in India. The two key points illustrated by the case study discussed in this chapter are what are the issues facing a North American company that deals with an IT service supplier thousands of miles and many time zones away and what are the lessons learned from a successful outsourcing relationship.


Author(s):  
Mary Cecelia Lacity ◽  
Leslie P. Willcocks

The global IT outsourcing market is estimated to exceed $121 billion by the year 2001. To assess current market practices and experiences, a survey was distributed to 600 US and UK CIOs. The 101 US and UK respondents are generally pleased with information technology (IT) outsourcing. In particular, respondents rated overall supplier performance as “good,” respondents mostly realized the benefits they expected from IT outsourcing, and respondents characterized the majority of problems/issues as only “minor” in nature. The healthy IT outsourcing report card is likely explained by the scope and type of IT outsourcing practiced by responding organizations. The vast majority of respondents pursue selective outsourcing which is less risky than total outsourcing. Most respondents also use multiple suppliers rather than a single supplier, which allows for best-of-breed supplier selection. The healthy report card may also be explained by the types of IT activities selected for outsourcing. Respondents generally targeted IT infrastructure activities—such as disaster recovery, mainframe operations, network management, midrange operations, PC support, and help desk operations—rather than IT development or IT strategy. UK and US practices and outcomes were very similar, although a few exceptions are noteworthy. On average, UK organizations (30%) totally insourced IT more frequently than US organizations (8%). US organizations (29%) more frequently used a single supplier than UK organizations (9%). UK organizations (50%) use only one stakeholder to negotiate/define contracts compared to US organizations (9%). Differences may be explained by a more matured approach to outsourcing in the USA together with the higher preponderance of larger deals and organizations studied. Findings are compared to prior survey and case study research.


2020 ◽  
Vol 35 (1) ◽  
pp. 49-65
Author(s):  
Wenyu (Derek) Du ◽  
Shan L. Pan ◽  
Junjie Wu

Vendor capabilities are an important research stream in the IT outsourcing literature. The extant studies have generated rich findings on how vendors develop capabilities, but these findings have mainly been based on the condition of vendors improving their existing business. How vendors develop capabilities to move up the value chain has received little prior research attention. A key challenge for vendors in moving up the value chain is the development of new capabilities while maintaining the existing ones. This challenge is consistent with achieving exploration and exploitation in organizational ambidexterity. Hence, we adopt organizational ambidexterity as our theoretical lens. By conducting a case study on four IT outsourcing vendors in China, we identify four classifications for achieving ambidexterity in capability development and the context for each classification. These classifications are based on combinations of different structural arrangements and processes for achieving ambidexterity. Our study contributes to the research on IT outsourcing vendor capabilities by improving our understanding of capability development in vendors moving up the value chain. It also contributes to the organizational ambidexterity literature by identifying the factors that influence the choices of different structural arrangements and processes.


2017 ◽  
Vol 32 (1) ◽  
pp. 47-61
Author(s):  
Brian Nicholson ◽  
Ron Babin ◽  
Steve Briggs

This article draws on the evidence gathered from a corporate social responsibility (CSR) research project in the area of global information technology (IT) outsourcing to examine the impact of liminality. IT outsourcing offers a novel context to study this phenomena, as it operates across the boundaries of both firm and country. The case study focuses on the specific project of a school in India, as the liminal space found ‘betwixt and between’ the client and provider of IT outsourcing services. Three stages of liminality are identified: separation (divestiture), transition (liminality) and incorporation (investiture); through the interpretive analysis of the empirical material. The construct of communitas is proposed for analysing the impact of liminality on the relationship between an outsourcing client and the provider. The understanding of liminality and communitas has both theoretical and practical implications, and contributes to the understanding of relationships and the wider role of CSR in global IT outsourcing.


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