Financial and Strategic Motivations behind is Outsourcing

1995 ◽  
Vol 10 (4) ◽  
pp. 299-321 ◽  
Author(s):  
Kerry Mclellan ◽  
Barbara L. Marcolin ◽  
Paul W. Beamish
Keyword(s):  
Case Studies ◽  
Joint Venture ◽  
Core Competencies ◽  
Core Competency ◽  
Structured Interview ◽  
It Outsourcing ◽  
Management Decision ◽  
Organizational Boundaries ◽  
Multiple Case ◽  
Outsourcing Contracts

Information Systems (IS) functions and whole IS departments are being outsourced in industries where the IS functions have been considered ‘core’ to the success of that business. Why and how senior management came to make these decisions is the focus of this article. It explains the motivations behind Information Technology (IT) outsourcing when popular alliance theories, such as transaction cost theories, game theory and joint-venture alliance theory suggested firms would not outsource an entity if core competency would be lost. Seven case studies were used to investigate the IT outsourcing phenomenon in the observed ‘alliance-like’ relationships emerging in the banking industry in the early 1990s. Inductive theory generating research was undertaken in this work following Yin's (1984, 1989) guidelines of multiple case replications to ensure rigorous and systematic data collection procedures. Before the case studies were conducted, 40 preliminary interviews were undertaken with managers of companies that were and were not involved in IT outsourcing contracts to explore the theorized factors of interest drawn from the literature, to develop the propositions, and to refine a structured interview guide. These preparatory steps led into the initial case study, and the literal replications of the proposed factors to confirm the patterns found. A theoretical replication based on conflict resolution was then undertaken to expose greater variation in conflict with the outsourcing relationships to contrast the initial patterns found. The results suggest that financial motivations underlie many IT outsourcing decisions, and unresponsive IS departments are accelerating the pace of the outsourcing process. Within this research, IT outsourcing was found to have profound effects on the expenses for the banks. However, contrary to conventional wisdom, IT outsourcing is taking place within firms and industries which utilize IS activities that are considered core competencies. Several strategic motivations were presented that may explain this management decision. Firms were undertaking IT outsourcing to change the organizational boundaries, to restructure, to mitigate technological risk and uncertainty, to access emerging technology, to manage the IS department better, and to link business and IT strategy.

An Integrated Model of Success in IT Outsourcing Relationships

2014 ◽  
pp. 142-167
Author(s):  
Francois Duhamel ◽  
Isis Gutiérrez-Martínez ◽  
Sergio Picazo-Vela ◽  
Luis Felipe Luna-Reyes
Keyword(s):  
Knowledge Sharing ◽  
Empirical Test ◽  
It Outsourcing ◽  
Future Research ◽  
Organizational Boundaries ◽  
Factors Affecting ◽  
The Public ◽  
Future Research Directions ◽  
The Right ◽  
Outsourcing Contracts

Possible remedies for the failure of IT outsourcing in the public sector include the improvement of knowledge-sharing processes over organizational boundaries between partners, who may learn more about the problems that occur while looking at possible solutions together. Ensuring the right flow of knowledge in the two directions is central to the success of IT outsourcing operations. However, these solutions do not fully acknowledge the different interrelationships between the main factors affecting knowledge transfer in outsourcing relationships in a dynamic way. In this chapter, the authors apply previous research on modeling knowledge-sharing across boundaries to IT outsourcing contracts during the transition phase where both partners initiate an IT outsourcing relationship. Simulation experiments suggest that four reinforcing processes play key roles in the progress of the outsourcing relationship: trust, outsourcers' and providers´ knowledge, commitment, and interfacing. The authors propose future research directions to conduct empirical test of the conceptual model in the context of the Mexican Public Administration.

The Key Role of Interfaces in IT Outsourcing Relationships

2012 ◽  
Vol 5 (1) ◽  
pp. 37-56 ◽  
Author(s):  
Francois Duhamel ◽  
Isis Gutiérrez-Martínez ◽  
Sergio Picazo-Vela ◽  
Luis Felipe Luna-Reyes
Keyword(s):  
Knowledge Sharing ◽  
Service Providers ◽  
It Outsourcing ◽  
Simulation Experiments ◽  
Organizational Boundaries ◽  
Factors Affecting ◽  
The Right ◽  
Outsourcing Contracts ◽  
The Relationship

Many IT outsourcing operations fail, and when they do not fail they often impose renegotiations over the life of the contract between outsourcers and service providers. Possible remedies include the improvement of knowledge-sharing processes over organizational boundaries between partners, who may learn more about the problems that occur while looking at possible solutions together. Ensuring the right flow of knowledge in the two directions is central to the success of IT outsourcing operations, particularly in the transition stage of the relationship. However, these solutions do not fully acknowledge the different interrelationships between the main factors affecting knowledge transfer in outsourcing relationships in a dynamic way. In this paper, previous research on modeling knowledge-sharing across boundaries is applied to IT outsourcing contracts during the transition phase of the IT outsourcing relationship. Simulation experiments suggest that four reinforcing processes play key roles in the progress of the outsourcing relationship: trust, outsourcers’ and providers’ knowledge, commitment, and interfacing.

scholarly journals Explaining IT Outsourcing Satisfaction using Domberger’s Theory: An SME Perspective

2013 ◽  
Vol 15 (1) ◽  
pp. 45
Author(s):  
Ching-Seng Yap ◽  
Yet-Mee Lim ◽  
Teck-Heang Lee
Keyword(s):  
Customer Satisfaction ◽  
Small And Medium Enterprises ◽  
Core Competencies ◽  
Core Competency ◽  
It Outsourcing ◽  
It Service ◽  
Path Modelling ◽  
Medium Enterprises ◽  
The Cost ◽  
Gain Access

IT outsourcing has emerged as an important tool for enabling organizations to gain access to specific skills and services, focus on their core competencies, and reduce the cost of IT service provision. With the increasing number of IT outsourcing failures, it is timely to identify the determinants of IT outsourcing satisfaction. This study investigates the types of IT function outsourced and examines the factors influencing customer satisfaction in IT outsourcing in Malaysian small- and medium-enterprises. Using an email questionnaire survey, data are collected from 100 firms listed on the Directory of Small and Medium Enterprises in Malaysia. Drawing from Domberger’s Theory of the Contracting Organization, four hypotheses are developed and tested in this study. Using the PLS path modelling technique, the findings show that focus on core competency, cost reduction, access to IT expertise and skills, and flexibility are positively related to customer satisfaction in IT outsourcing. The paper includes implications and recommendations for future studies.

An Examination of the Importance of Core Competencies and Relationship Management in IT Outsourcing Agreements

2013 ◽  
Vol 21 (3) ◽  
pp. 21-41 ◽  
Author(s):  
Yong Jin Kim ◽  
Jaeki Song ◽  
Jeff Baker ◽  
Junghwan Kim
Keyword(s):  
Structural Equation ◽  
Process Management ◽  
Core Competencies ◽  
Core Competency ◽  
Strategic Decision ◽  
It Outsourcing ◽  
Equation Modeling ◽  
Eastern Culture ◽  
Specific Investment

In spite of the fact that IT outsourcing has been repeatedly proven to improve firms’ performance, few studies of the strategic importance of IT outsourcing have been undertaken in Eastern cultural contexts. To better understand IT outsourcing performance in an Eastern culture, the authors draw on the strategic orientation-performance framework as they investigate the unique capabilities of firms that determine IT outsourcing performance. The authors highlight the strategic role of client-vendor relationships, and explain that these relationships are influenced by IT outsourcing process management capacity, core competency orientation, and relationship-specific investment in IT outsourcing practices. The quality of this client-vendor relationship, in turn, affects the performance of the IT outsourcing unit. Empirically examining their research model through structural equation modeling, the authors present new insights for IT outsourcing by emphasizing the role of strategic decision making. The authors’ findings can enable client firms in Eastern cultures to improve the outcomes of their outsourcing decisions.

scholarly journals An Analysis of PhD Students' Views on the Competencies of their Supervisors

2021 ◽  
Vol 11 (2Pt2) ◽  
pp. 508-520
Author(s):  
Hasan Tutar ◽  
Mehmet Altınöz ◽  
Sevilay Güler
Keyword(s):  
Significant Contribution ◽  
Core Competencies ◽  
Core Competency ◽  
Structured Interview ◽  
Dissertation Writing ◽  
Technical Competency ◽  
Qualitative Research Methodology ◽  
Managerial Competency ◽  
Phd Supervision

This study aims to examine the opinions of PhD students who are in their dissertation-writing stage, on their supervisors' "core competency", "technical competency" and "managerial competency". Designed as a case study, it employs a qualitative research methodology. The sample of the study consists of 15 PhD students determined by using the criterion sampling method, which is one of the purposive sampling methods. The data were collected through a semi-structured interview form. The obtained data were analyzed through content analysis. The findings revealed that some of the PhD students found their supervisors inadequate in terms of technical, managerial and core competencies while some of them had positive opinions on the competencies of their supervisors. PhD students learn about how supervising processes work and compare themselves to their peers by communicating with each other directly and through social media. The study is original and important since it makes a significant contribution to revealing the effectiveness of PhD supervision.

An Input–Process–Output Model of Pilot Core Competencies

2017 ◽  
Vol 7 (2) ◽  
pp. 78-85 ◽  
Author(s):  
Heikki Mansikka ◽  
Don Harris ◽  
Kai Virtanen
Keyword(s):  
Path Analysis ◽  
Team Performance ◽  
Core Competencies ◽  
Core Competency ◽  
Principal Component ◽  
Analysis Model ◽  
Input Process ◽  
The Core ◽  
Performance Framework ◽  
Process Output

Abstract. The aim of this study was to investigate the relationship between the flight-related core competencies for professional airline pilots and to structuralize them as components in a team performance framework. To achieve this, the core competency scores from a total of 2,560 OPC (Operator Proficiency Check) missions were analyzed. A principal component analysis (PCA) of pilots’ performance scores across the different competencies was conducted. Four principal components were extracted and a path analysis model was constructed on the basis of these factors. The path analysis utilizing the core competencies extracted adopted an input–process–output’ (IPO) model of team performance related directly to the activities on the flight deck. The results of the PCA and the path analysis strongly supported the proposed IPO model.

scholarly journals Competency-Industry Relatedness (C-IR) Framework for Sustained Business Growth in Startups during and beyond Pandemic: Myths and Lessons from Publicly Funded Innovative Startups

2021 ◽  
Vol 13 (9) ◽  
pp. 4632
Author(s):  
Varun Gupta ◽  
Luis Rubalcaba
Keyword(s):  
Case Studies ◽  
Business Environment ◽  
Learning Curves ◽  
The European Union ◽  
Business Growth ◽  
Product Lines ◽  
Business Decisions ◽  
Multiple Case ◽  
Multiple Case Studies ◽  
Industry Relatedness

Context: The coronavirus disease 2019 (COVID-19) pandemic led to a turbulent business environment, resulting in market uncertainties, frustrations, and rumors. Wrongly held beliefs—or myths—can hinder startups from turning new market opportunities into their favor (for example, by failing at diversification decisions) or undertaking wrong business decisions, e.g., diversifying in industries that have products of no real market value). Objectives: The objective of the paper is to identify the beliefs that drive the business decisions of startups in a pandemic and to isolate those beliefs that are merely myths. Further, this paper proposes strategic guidelines in the form of a framework to help startups make sound decisions that can lead to market success. Method: The two-step research method involved multiple case studies with five startups based in India, France, Italy, and Switzerland, to identify perceptual beliefs that drove strategic business decisions, followed by a case study of 36 COVID-19-solution focused startups, funded by the European Union (EU). The findings were validated through a survey that involved 102 entrepreneurs. The comparative analysis of two multiple case studies helped identify beliefs that were merely “myths”; myths that drove irrational strategic decisions, resulting in business failures. Results: The results indicate that startups make decisions in pandemic situations that are driven by seven myths, pertaining to human, intellectual, and financial resources. The decision on whether to diversify or continue in the same business operation can be divided into four strategic options of the Competency-Industry Relatedness (C-IR) framework: ignore, delay, phase-in, and diversify. Diversification in the same (or different industry) is less risky for startups if they have the skills, as needed, to diversify in related industries. Diversification in related industries helps startups leverage their experiences and learning curves (those associated with existing product lines) to adapt their existing products in new markets, or utilize their technologies to solve new problems via new products. The desired outcome for these startups should be sustainable business growth—to meet sustainability goals by contributing to the society and the economy. Conclusion: The C-IR framework is a strategic guide for startups to make business decisions based on internal factors, rather than myths. Accurately assessing skill diversity and the nature of new industries (or markets) will help startups leverage their existing resources optimally, without the need for (pricey) external funding. This will foster sustained business growth resulting in a nation economic development. Knowledge transfer from the Innovation ecosystem will further strengthen the C-IR framework effectiveness.

Exploring Library Core Competencies: A Text Mining Study of American Library Association’s Job Advertisements From 2006 Through 2017

2021 ◽  
pp. 089443932110272
Author(s):  
Qinghong Yang ◽  
Zehong Shi ◽  
Yan Quan Liu
Keyword(s):  
Language Processing ◽  
Work Experience ◽  
Core Competencies ◽  
Core Competency ◽  
Analytical Investigation ◽  
Market Demand ◽  
American Library ◽  
Job Titles ◽  
Job Advertisements ◽  
Processing Techniques

Are core competency requirements for relevant positions in the library shifting? Applying natural language processing techniques to understand the current market demand for core competencies, this study explores job advertisements issued by the American Library Association (ALA) from 2006 to 2017. Research reveals that the job demand continues to rise at a rate of 13% (2006–2017) and that the requirements for work experience are substantially extended, diversity of job titles becomes prevalent, and rich service experience and continuous lifelong learning skills are becoming more and more predominant for librarians. This analytical investigation informs the emerging demands in the American job market debriefing the prioritization and reprioritization of the current core competency requirements for ALA librarians.

Service Oriented Architecture (SOA) Implementation

2018 ◽  
Vol 10 (2) ◽  
pp. 1-21 ◽  
Author(s):  
Tom Yoon ◽  
Bong-Keun Jeong
Keyword(s):  
Case Studies ◽  
Service Oriented Architecture ◽  
Successful Implementation ◽  
Business Units ◽  
Small Project ◽  
Service Oriented ◽  
Multiple Case ◽  
Multiple Case Studies ◽  
And Training

Using a multiple case studies and surveys, this article finds that factors essential to successful Service Oriented Architecture (SOA) implementations include establishing effective SOA governance, establishing SOA registries, starting with a small project, collaboration between business and IT units, strengthening trust among business units, and training. This article also explores business and IT motivations for SOA implementation and the benefits realized from this implementation. The findings from this article can provide a guidance for practitioners on the successful implementation of SOA.

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