IT Outsourcing Practices in Australia and Taiwan

2010 ◽  
pp. 1324-1332
Author(s):  
Chad Lin ◽  
Koong Lin

Globally, information technology (IT) outsourcing has spread quickly in many countries and spending by organizations in IT outsourcing is increasing rapidly each year. According to Gartner (Blackmore, De Souza, Young, Goodness, and Silliman, 2005), total spending on IT outsourcing worldwide is likely to rise from US $184 billion in 2003 to US $256 billion in 2008. However, defining IT outsourcing is not an easy task as it can mean different things to different organizations. Hirschheim and Lacity (2000) define IT outsourcing as the “practice of transferring IT assets, leases, staff, and management responsibility for delivery of services from internal IT functions to third-party vendors.” Willcocks and Lester (1997) define outsourcing as the “commissioning of third-party management of IT assets or activities to deliver required results.” The scope and range of outsourcing services have also increased as well, as evidenced by the promotion of BPO (business process outsourcing), ASP (applications service providers), global outsourcing, R&D (research and development) outsourcing, and web and e-business outsourcing (Gonzales Gascon and Llopis, 2005; Huang, Lin, and Lin, 2005). While there is already much research on the economics of IT outsourcing, critical success factors for IT outsourcing decision-making and for outsourcing vendor management (Barthelemy and Geyer, 2004; Hirschheim and Lacity, 2000), there is very little literature on the actual linkage between IT outsourcing and the use of evaluation methodologies in organizations, especially in how these organizations evaluate their IT outsourcing contracts and ensure that the benefits expected from these contracts are delivered eventually. The aim of this paper is to examine issues surrounding the evaluation and benefits realization processes in Australian and Taiwanese organizations undertaking IT outsourcing. The paper first reviews relevant literature with respect to IT outsourcing, the evaluation of IT outsourcing, and IT benefits realization. Key findings from a survey of the top 2000 Australian organizations, as well as a survey to top 3000 Taiwanese organizations, will then be presented. The paper examines these findings and issues in light of these large organizations’ evaluation practices.

Author(s):  
Chad Lin ◽  
Koong Lin

Globally, information technology (IT) outsourcing has spread quickly in many countries and spending by organizations in IT outsourcing is increasing rapidly each year. According to Gartner (Blackmore, De Souza, Young, Goodness, and Silliman, 2005), total spending on IT outsourcing worldwide is likely to rise from US $184 billion in 2003 to US $256 billion in 2008. However, defining IT outsourcing is not an easy task as it can mean different things to different organizations. Hirschheim and Lacity (2000) define IT outsourcing as the “practice of transferring IT assets, leases, staff, and management responsibility for delivery of services from internal IT functions to third-party vendors.” Willcocks and Lester (1997) define outsourcing as the “commissioning of third-party management of IT assets or activities to deliver required results.” The scope and range of outsourcing services have also increased as well, as evidenced by the promotion of BPO (business process outsourcing), ASP (applications service providers), global outsourcing, R&D (research and development) outsourcing, and web and e-business outsourcing (Gonzales Gascon and Llopis, 2005; Huang, Lin, and Lin, 2005). While there is already much research on the economics of IT outsourcing, critical success factors for IT outsourcing decision-making and for outsourcing vendor management (Barthelemy and Geyer, 2004; Hirschheim and Lacity, 2000), there is very little literature on the actual linkage between IT outsourcing and the use of evaluation methodologies in organizations, especially in how these organizations evaluate their IT outsourcing contracts and ensure that the benefits expected from these contracts are delivered eventually. The aim of this paper is to examine issues surrounding the evaluation and benefits realization processes in Australian and Taiwanese organizations undertaking IT outsourcing. The paper first reviews relevant literature with respect to IT outsourcing, the evaluation of IT outsourcing, and IT benefits realization. Key findings from a survey of the top 2000 Australian organizations, as well as a survey to top 3000 Taiwanese organizations, will then be presented. The paper examines these findings and issues in light of these large organizations’ evaluation practices.


2015 ◽  
Vol 11 (1) ◽  
pp. 62-84 ◽  
Author(s):  
João Correia dos Santos ◽  
Miguel Mira da Silva

During the last decades, IT Outsourcing gained considerable management attention and is considered a strategic decision used to promote success on its variable dimensions, like: cost reduction, quality improvement, access to new technologies, among others. The existing literature presents many studies on IT Outsourcing. However, there are few studies from the provider's perspective. Therefore, the objective is to focus on providers' critical success factors and their relationships in IT Outsourcing contracts. To analyse this subject a qualitative approach based on cognitive mapping process was applied. Cognitive or causal maps are widely employed in problem-structuring, since they permit a rich representation of ideas, through the modelling of a complex network of actions. This approach is innovative compared to the traditional quantitative methods used. As a result, they were able to map a network of means and ends and in parallel were found new success factors like service standardization, price flexibility, cost management and service catalogue, which allowed obtaining new insights into the structure of today's IT Outsourcing contracts.


2011 ◽  
Vol 2 (4) ◽  
pp. 29-60 ◽  
Author(s):  
Omprakash K. Gupta ◽  
S. Samar Ali ◽  
Rameshwar Dubey

Third party logistics (3PL) has been gaining importance in most places in the world. In India the implementation of 3PL practices has made its beginning and it is emerging as one of the fastest growing sectors. It is still a relatively new concept and not well understood among industry or academic professionals in India. This paper examines the Indian 3PL Supply Chain Management and practices with respect to the key success factors and growth strategies. After identifying the critical success factors SERVQUAL is applied to reveal the gap between their achievement and expectation. Respondents to the survey are categorized based on their rating of the key growth strategies on the basis of AHP.


2020 ◽  
Vol 3 (2) ◽  
pp. 37-52
Author(s):  
Sushil Paudel ◽  
H. S. Sharma

Outsourcing is described as the strategic use of external resources to carry out tasks that have traditionally been performed by internal staff and resources. It is considered to be the best-known phenomena of modern times and business strategy to drive the global economy.  Outsourcing offers enormous benefits to companies only if the outsourcing decision is correct and factors that affect the outsourcing decision are adequately considered, otherwise irreparable harm may be caused. A study to identify the critical success factors of IT outsourcing in Nepal from the vendor's perspective has been initiated. This study examines different models about the effectiveness of outsourcing for the reason. All these models have their own advantages and drawbacks, so a careful review is important to reach at conclusions for the organizations that wish to follow such models. This article is based on4 comprehensive literature review of the success factors for outsourcing that led to the discovery of six different outsourcing models. The study has reviewed Leavitt’s model, McKinsey 7-S framework, The Nadler-Tushman Congruence Model, Technology Acceptance Model, DeLone and McLean's IS-Success Model and IS-Impact Model. Revised DeLone and McLean Model of Information Systems Success, however, are widely debated and considered to be the most promising.  


Author(s):  
Hans Solli-Sæther ◽  
Petter Gottschalk

We have identified a total of eleven theories that help explain why IT outsourcing is occurring worldwide. These theories were presented in the previous Chapter 2. Based on these theories, we develop eleven critical success factors in IT outsourcing, one for each theory. These factors are presented in the first section of this chapter. We developed the following research question: How do practitioners rank critical success factors based on outsourcing theories? To study this research question, we developed a survey instrument and conducted a survey among business organizations. Results from this survey and discussion of the findings are presented. In the second section of this chapter, we conceptualize the outsourcing of IT services as an electronic business activity, where the vendor electronically provides IT services to the client. The idea is that the purchasing of IT services is a business-to-business (B2B) relationship, which leads to outsourcing implications in terms of services that the vendor has to provide to its customers. Thus, we will in the second section look at critical success factors in electronic business infrastructure as an example of issues that need to be addressed.


Author(s):  
Chad Lin ◽  
Yu-An Huang ◽  
Chien-Fa Li ◽  
Geoffrey Jalleh ◽  
Ying-Chieh Liu

Many hospitals are experiencing pressure to improve their operational efficiency and patient safety due to escalating costs and increased competition. In order to achieve these and other business objectives, hospitals have to outsource some of their Information Technology (IT) functions to external outsourcing contractors. The scope and range of IT-related outsourcing services are also increasing, as evidenced by the promotion of Applications Service Providers (ASP), Business-to-Business (B2B) integration, cloud-drive business and IT services, desktop and helpdesk, IT infrastructure services, and software development outsourcing. However, little attention has been paid by many hospitals to the key factors that affect their IT outsourcing decision-making and negotiation processes. This is important given that the IT outsourcing can play a key role in organizational success. Moreover, contract decision-making and negotiation processes in hospitals are particularly under-studied, especially in the management and evaluation of the IT outsourcing contracts. Hence, the main objectives of this chapter are to: (1) examine and identify some key factors affecting the management and evaluation of IT outsourcing contracts in Taiwanese hospitals; and (2) propose a set of recommendations to overcome or minimize the key issues identified in this study. One contribution of the study is the recommendations provided to deal with issues that are critical in the management and evaluation of IT outsourcing contracts in hospitals.


2015 ◽  
pp. 1258-1278
Author(s):  
Chad Lin ◽  
Yu-An Huang ◽  
Chien-Fa Li ◽  
Geoffrey Jalleh ◽  
Ying-Chieh Liu

Many hospitals are experiencing pressure to improve their operational efficiency and patient safety due to escalating costs and increased competition. In order to achieve these and other business objectives, hospitals have to outsource some of their Information Technology (IT) functions to external outsourcing contractors. The scope and range of IT-related outsourcing services are also increasing, as evidenced by the promotion of Applications Service Providers (ASP), Business-to-Business (B2B) integration, cloud-drive business and IT services, desktop and helpdesk, IT infrastructure services, and software development outsourcing. However, little attention has been paid by many hospitals to the key factors that affect their IT outsourcing decision-making and negotiation processes. This is important given that the IT outsourcing can play a key role in organizational success. Moreover, contract decision-making and negotiation processes in hospitals are particularly under-studied, especially in the management and evaluation of the IT outsourcing contracts. Hence, the main objectives of this chapter are to: (1) examine and identify some key factors affecting the management and evaluation of IT outsourcing contracts in Taiwanese hospitals; and (2) propose a set of recommendations to overcome or minimize the key issues identified in this study. One contribution of the study is the recommendations provided to deal with issues that are critical in the management and evaluation of IT outsourcing contracts in hospitals.


2019 ◽  
Vol 32 (3) ◽  
pp. 715-730 ◽  
Author(s):  
Vincent Blijleven ◽  
Yiwei Gong ◽  
Afshin Mehrsai ◽  
Kitty Koelemeijer

PurposeFollowing positive results of Lean implementation in manufacturing environments, Lean has become an emerging philosophy for clients and suppliers of information technology (IT) services. However, how to implement Lean in IT outsourcing relationships has been addressed sparsely in academic literature. The purpose of this paper is to investigate critical success factors (CSFs) for implementing Lean in IT outsourcing relationships. Key findings, implications and avenues for future research are discussed.Design/methodology/approachSix IT outsourcing relationships were qualitatively investigated by means of 36 semi-structured interviews. CSFs were identified based on interview transcription analyses, selection techniques and expert reviews.FindingsIn total, 16 CSFs for Lean implementation in IT outsourcing relationships are identified and described.Practical implicationsThe CSFs presented in this paper indicate key areas that deserve managerial attention to steer Lean implementation efforts in IT outsourcing relationships in a favorable direction.Originality/valueThis study is the first to describe the phenomenon of “Lean IT outsourcing” and provides researchers and practitioners with a foundation to further examine Lean implementation in IT outsourcing relationships.


2011 ◽  
Vol 25 (4) ◽  
pp. 390-404 ◽  
Author(s):  
Yvette Blount ◽  
Margot McNeill

PurposeAs educational technologies are more widely adopted in higher education teaching and learning, publishers often include online resources to accompany their textbook offerings. The purpose of this paper is to report the results of a study forming part of a larger ongoing evaluation of the third party software product WileyPLUS.Design/methodology/approachThe paper describes the integration of the publisher's tools into a specific curriculum context and takes a critical look at the pedagogical effectiveness of the software in this context. A mixed‐methods approach is taken in the study, using a small postgraduate accounting unit as a case study.FindingsWhile many students reported positive experiences with the third party resources, technical issues were a barrier to their effectiveness and many students did not engage with the optional resources. The unit convenor's experience was largely positive.Practical implicationsAlthough it may be tempting for unit convenors to adopt these tools and resources as readily available and easy to use, it is important that they are integrated into the curriculum and that students are supported in their use.Originality/valueOutcomes include a list of critical success factors and an evaluation framework that could be of use to other academics seeking to embed third party resources into their teaching.


Sign in / Sign up

Export Citation Format

Share Document