Risk Factors in IT Outsourcing and the Theories Decision Makers Use to Resolve Them

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):  
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.


2017 ◽  
Vol 5 (5) ◽  
pp. 473-488 ◽  
Author(s):  
Wanbin Pan ◽  
Lei Huang ◽  
Linlin Zhao

Abstract A common feature of previous studies about the application of data envelopment analysis (DEA) to determine environmental and economic efficiencies is that the two were analyzed in separate models or frameworks. The purpose of this paper is to analyze the economic efficiency and environmental efficiency with a single model. This paper proposes an integrated DEA model, based on a modification of the directional distance function, which allows us to decompose the eco-efficiency (EE) into the economic efficiency (ECE) and environmental efficiency (ENE). The ECE characterizes the ability of gaining economic benefits while the ENE characterizes the ability to control pollutant emissions in production activities. Identification of ECE and ENE can help decision makers of different regions detect what kind of factor (economic inefficiency or environmental inefficiency) is the main source of eco-inefficiency. This can help decision makers more targeted to improve EE. To illustrate the feasibility of our approach, a case study of 30 regions in China is presented. The empirical results show that almost all regions have very high economic efficiencies. The environmental inefficiency is the main source of eco-inefficiency. The differences of environmental efficiencies lead to the differences of eco-efficiencies in the east, central and west areas, while the economic efficiencies do not have significant differences among these areas. The economic efficiencies showed an opposite “V” shape and the environmental efficiencies showed a decreasing trend during the period 2010–2014.


2019 ◽  
Vol 26 (10) ◽  
pp. 2223-2242 ◽  
Author(s):  
Hande Aladağ ◽  
Zeynep Işık

Purpose In build-operate-transfer (BOT) transportation projects, design and construction phases are critical in terms of their effect on time and cost overruns. The purpose of this paper is to identify the role of risk factors affecting these phases and their significance level for BOT transportation projects. Design/methodology/approach Design and construction risks were determined and then validated by focus group discussions. Afterwards, an illustrated case study was presented to better understand the effects of determined risks in a BOT mega transportation project. As the last step of the study, the fuzzy analytical hierarchy process method was used to prioritize risk factors. Findings The prominent risk factors were found out as occupational accidents, integration between design and construction phases and excessive design variations. Research limitations/implications Different kinds of BOT transportation projects in different countries might be executed very differently considering specific social, political, economic and other factors. However, the results of the study are important in terms of the specific lessons learned from the case study that can be used as a foundation for developing possible risk mitigation measures. Originality/value Though the risk management of BOT projects has been investigated frequently in the literature, there is a knowledge gap in the quantitative evaluation of risk significance specific to design and construction risks. The prioritization of determined risks with an associated case from a mega transportation project will contribute to the BOT project practitioners about possible challenges in design and construction phases in BOT mega transportation projects.


2011 ◽  
Vol 39 (1) ◽  
pp. 129-144 ◽  
Author(s):  
Hatice Bal Yilmaz ◽  
Şeyda Dülgerler

Using Izmir, Turkey as a case study the risk factors leading children to work in the streets were identified. Participants in the study were 226 children working in the streets, average age 10.35±2.21 who worked 6.8±2.11 hours per day. The great majority of the children were boys (90.2%), 77.9% were of primary school age; two-thirds of the children were working to provide an economic contribution to the family; 86.6% were from a large family; 78.8% were from a family that migrated to a big city. Almost all did not find working in the street safe; and nearly half were not hopeful about the future. It was established that frequent problems in the children's families include poverty, unemployment, poor education, having a large family, poor family functioning, migration, limited possibilities of shelter, and domestic violence, including the beating of wives and children. Although nearly all the children still lived with their families, a small percentage of the children (5.8%) had begun living permanently on the streets and then cut ties with their families. A significant relationship was found between living on the streets and the age of the child, the father's education, and the father's use of alcohol.


2020 ◽  
Vol 8 (1) ◽  
pp. 456-463
Author(s):  
Dakheelallah Alharbi ◽  
Zarina Othman ◽  
Sity Daud

Purpose: The purpose of the study is to give an analysis of the humanitarian situation and the case of human rights in Syria after the events of the Arab spring. Methodology: This is analytical-descriptive research that has been done through literature review, content analysis, and documentary and case study research. Result: our results suggest that the Syrian government made false concessions designed to end the revolts. The occurrence led to the formation of a rebel group, the Free Syrian Army whose main objective was to oust the authoritarian regime and stop the killing of civilians. This marked the beginning of the blatant violation of human rights as well as the civil war in Syria. The government not only ignited but also took the war to its own people killing, injuring and imprisoning thousands of people. Worse still, thousands of women and young girls still suffer sexual violence during the nightly raids conducted frequently on either opposing camps. Following the massive violations of human rights, almost all economic sectors of Syria have met rock-bottom. Applications: This research can be used for policymakers and the international community to take a further step to aid the Syrian civilians. Novelty/Originality: In our research, we try to target a very much debated topic in the Middle East. Although several articles written about the humanitarian and human rights situation in Syria studies on human rights after the Arab spring is still lacking.


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.


2021 ◽  
Vol 2 (2) ◽  
Author(s):  
LAYTH A KRAIDI ◽  
Raj Shah ◽  
Wilfred Matipa ◽  
Fiona Fiona Borthwick

The aim of this paper is to present the design and specifications of an integrated Delay Analysis Framework (DAF), which could be used to quantify the delay caused by the Risk Factors (RFs) in Oil and Gas Pipelines (OGPs) projects in a simple and systematic way. The main inputs of the DAF are (i) the potential list of RFs in the projects and their impact levels on the projects and the estimated maximum and minimum duration of each task. Monte Carlo Simulation integrated within @Risk simulator was the key process algorithm that used to quantify the impact of delay caused by the associated RFs. The key output of the DAF is the amount of potential delay caused by RFs in the OGP project. The functionalities of the developed DAF were evaluated using a case study of newly developed OGP project, in the south of Iraq. It is found that the case study project might have delayed by 45 days if neglected the consideration of the RFs associated with the project at the construction stage. The paper concludes that identifying the associated RFs and analysing the potential delay in advance will help in reducing the construction delay and improving the effectiveness of the project delivery by taking suitable risk mitigation measures.  


Author(s):  
Cheng-Chieh Huang ◽  
Ching-Cha Hsieh

Making decisions in an IS/IT outsourcing project is complex and the outcome is unpredictable. Prior research on IS/IT outsourcing decisions simply assumed the decision-making process is rational, comprehensive and independent that is not descriptively accurate, and thus, cannot be prescriptively useful in such a complex environment. In order to gain a deeper understanding of decision-making in IS/IT outsourcing processes, this chapter creates an outsourcing decision framework, derived from a dynamic perspective, to illustrate the decision-making process and how the decisions impact outsourcing results. An in-depth case study methodology is used to interpret an e-strategy transformation outsourced project. The analysis indicates interwoven decisions, knowledge as power, decision-makers’ cognition, and ideologies should be the focus of future studies on IS/IT outsourcing.


2010 ◽  
Vol 439-440 ◽  
pp. 743-748
Author(s):  
Bao Zhu Li ◽  
Ran Bi ◽  
Qing Zhang

The index system of the E-commerce websites is qualitative, but almost all of them are lack of weights. This paper built a reasonable index system and used the decision-making method ANP to improve the traditional evaluation method. Theoretical foundations and application process of ANP were discussed; dependence and feedback among indices were analyzed. A case study was done by using the Super Decisions software, the result of which can be used for decision-makers.


2019 ◽  
Vol 1 (1) ◽  
Author(s):  
Alfredo Rivera ◽  
Jacob Kashiwagi

The Best Value Approach (BVA) is a new project delivery method that has been documented to increase performance and value. It does this by changing the traditional project delivery characteristics of managing the expert and focusing on the technical side of the project, to utilizing the expertise of the experts and using performance information and risk mitigation to manage the project. Large organizations have had difficulty in sustaining the BVA. A large private organization agreed to test the BVA on the replacement of a roofing system on one of its facilities. A case study research was performed on this project, using the grounded research approach, to identify if a large supply chain stakeholder can utilize the BVA to sustain high performance, value, and low price at the same time in a highly competitive marketplace. The research proposal is to document issues and benefits of utilizing the BVA. Identifying why large organizations have an issue with sustaining the approach and being utilized on more projects. The results of the paper will identify issues organizations have with implementing the BVA and the benefits in using the delivery system on construction services. The case study utilizes a stakeholder in the roofing industry supply chain and shows an approach to construction services that utilizes performance information and risk mitigation.


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