Outsourcing of core business functions : focus on the accounting profession

This study found that a majority of Australian accounting firms either currently oursource accounting services or are considering outsourcing, and identified the significance of outsourcing contracts. It established that most firms outsource their core services. The study provided important information regarding ethical issues and the relinquishment of professional status.

The transnational corporation, corporate social responsibility and the 'outsourcing' debate

Current popular debates in the United States and Australia on the topics of 'jobless recoveries' and the 'outsourcing' of skilled IT jobs to India (most conspicuously) evidence a confusion as to the institutional role of the business firm and its obligations to the broader stakeholder community, as well as to the more specific differences between outsourcing and the spatial restructuring of corporate value-chains. This paper will take up several issues in the hope of clarifying this confusion, including the essential nature of the business firm as an economic, political and social institution; the possibilities for social responsibility and stakeholder management in large internationalised firms; and the critical distinctions between domestic and international outsourcing and spatial restructuring. Data from the 'outsourcing' debate will be referenced to illustrate the differing logics/rationalities of relevant stakeholder groups.

Faster CRT-RSA Decryption towards RFID applications

In this paper we present a strategy to design the RSA parameters in such a manner so that the CRT-RSA decryption becomes more efficient than the existing methods. We achieve around 21% improvement in speed over the currently best known implementation strategy for CRT-RSA decryption with our properly chosen parameters that also helps in terms of less memory requirement. Moreover, we argue in detail the cryptographic security regarding our choice of the secret parameters.

The quality-of-relationship construct in IT outsourcing

This paper reports on the conceptualization and measurement of an important management controllable factor affecting the success of an information technology outsourcing (ITO) arrangement, namely Quality of Relationship (QoR). Attributes of the construct were identified from an analysis of the literature, and key attributes selected based on interviews with 29 managers in four pairs of client and supplier organizations. Construct validity of the resultant measure is assessed through comparison with qualitative interview data, and through tests of association between our measure and perceived overall ITO success. The results suggest that the ten indicators identified in the paper provide a valid measure of the quality of relationship that can be used by both client and supplier managers, and researchers, in assessing the health of an ITO relationship.

Impact of configuration on IT outsourcing relationships

This paper tests the extent to which four main factors that help define an organization’s information technology (IT) outsourcing configuration contribute to the quality of IT outsourcing relationships between clients and suppliers. It presents a research model that is tested using an analysis of substantive in-depth interviews with a total of 28 client and supplier managers in four pairs of client and supplier organizations. The findings suggest that a sound outsourcing configuration is important for the successful development of a quality relationship between parties. Thus, organizations seeking to increase their operational excellence and decrease the operational cost of IT outsourcing, and ultimately to improving the success of their IT outsourcing arrangements, must put more emphasis on, and take a more planned approach to, configuring their IT outsourcing arrangements.

A model for studying IT outsourcing relationships

The trend towards using information technology (IT) outsourcing to exploit core competencies and attain competitive advantage is increasing in organizations. In this regard, researchers are studying organizations to understand the variety of factors that influence IT outsourcing relationships. This paper presents a model of factors influencing IT outsourcing relationship efficacy. The model is a synthesis of the work of ten groups of authors on IT outsourcing relationships, and is intended as a guide to question formulation for future research.

Outsourcing the risks : alcohol licensing, risk and the making of the night time economy

Mariana Valverde argues that in the late twentieth century, the British state contracted out the prevention of disorder and monitoring of risks produced by widespread alcohol use to the private sector through the process of liquor licensing. This paper will argue that this scenario was duplicated in Victoria at the same time. It will do so by an analysis of four government-instigated inquiries into liquor licensing regimes from 1965 to 1998. The inquiries were distinguished by the subtly different emphases in their terms of reference. In 1965, the Phillips Royal Commission was directed to inquire into the best ways of dealing with the problems alcohol produced and how best to regulate it for the benefit of the population as a whole. By the time the Nieuwenhuysen Report was commissioned in 1985, the emphasis had changed, and he was directed to inquire how best to serve the interests of alcohol consumers and to produce the licensing regulatory regime which would enable the construction of a 24-hour city. Any anomalies that still existed in the revised Act were eliminated in the 1998 review which was instigated as a direct response to the National Competition Policy. A consequence of these changes over 30 years was the development of particular risk groups, such as ‘binge-drinking young people’, whose violence and nuisance must be controlled to enable all other ‘reasonable’ and ‘moderate’ drinkers be allowed to keep drinking. Thus the notion of risk had been redefined and the responsibility for dealing with these risks had been directed from the state to individual licensees and individual drinkers.

Identifying the extent, motivations and barriers to outsourcing of accounting services

In this paper we analyse the oursourcing of accounting services. The extent to which firms are currently outsourcing, or considering outsourcing such services, and the motivations and barriers associated with outsourcing are identified. Empirical data from a random sample of accounting firms are used in this analysis. Data indicate that the majority of accounting firms are either currently outsourcing or considering outsourcing and that they exopect the volume of oursourced services to increase. In contrast to the scholarly literature advocating labor arbitrage as the primary driver for organizations choosing to outsource, in this study it was found that the main factors underpinning the decision to outsource were the expediting of service delivary to clients, and to enable the firm to focus on its core competencies.

Consideration of selflessness and self-interest in outsourcing decisions

Purpose – The paper aims to discuss the need to balance selflessness and self-interest issues in outsourcing decisions. This discussion is timely given the tensions that currently exist between those who want off-shore outsourcing to continue as a means for increasing international trade, and those who only want to conduct business on-shore.

Design/methodology/approach – A conceptual approach has been taken in this paper in order to highlight key considerations for ethical decision-making with respect to off-shore outsourcing.

Findings – Considerations of selflessness and self-interest are embedded in outsourcing decisions. It is recommended that a balance between making profits and fulfilling social responsibilities is required, ideally, at each stage of decision-making. Hence, managers should think critically about the reasons behind off-shore outsourcing decisions, the process of arriving at decisions, and the impact of their decisions on stakeholders.

Research limitations/implications – This is a conceptual paper and further empirical data to validate the stages of decision-making framework are required.

Practical implications – Failure to take into account the selflessness and self-interest outcomes of off-shore outsourcing could potentially off-set strategic gains by leading to negative media publicity for a company.

Social implications – Ethical considerations as part of outsourcing decisions should result in a transparent, fair and more humane working environment for both the host and the home country representatives involved in the process.

Originality/value – This paper presents an original framework of selflessness and self-interest considerations when making off-shore outsourcing decisions. Both Eastern and Western business perspectives have been incorporated as part of the decision-making framework.

International outsourcing of information technology services : review and future directions

Purpose – The purpose of this paper is to review the development of the empirical literature on international outsourcing of information technology services (ITS) over the 1992-2007 period and to identify future research areas.

Design/methodology/approach – A sample of 78 empirical academic publications on international outsourcing of ITS conducted between 1992 and 2007 across 46 scholarly journals constitutes the main data for analytical purposes. The sample is compiled following extensive electronic searches of the main academic databases. After clustering the studies in the sample according to their main research areas, a narrative approach is used to review developments in each cluster and to identify emerging research areas.

Findings – Four main areas of research are identified, namely outsourcing decision, outsourcing management (OSM), outsourcing outcome and the role of offshore service providers (OSPs). The review suggests that research efforts to date have been predominantly on outsourcing decision and OSM, mostly from the perspective of clients. Future research opportunities exist in the areas of outsourcing strategy and performance, the behaviour and performance of OSPs particularly within the context of firms from less-developed countries competing globally, and the nature of competition among OSPs both within and among countries.

Originality/value – This is the first review which focuses on empirical studies of outsourcing for ITS. This paper identifies several gaps in the literature and points to the need for more research on outsourcing from the perspective of OSPs.

The impact of ITIL (information technology infrastructure library) recommended practices on the IT outsourcing relationship

Over the last two decades, the outsourcing of IT services has become a popular topic for many IS researchers. Furthermore, managing IT services (both internally and externally provided) has become an emerging area for academic research, given the criticality of IT services in modern organizations. One of the better known IT service management frameworks is the Information Technology Infrastructure Library (ITIL) framework. While there are many claims made about the relationship between ITIL and IT outsourcing, these claims still need further empirical research. Using data gathered from a preliminary focus group, this study investigates how ITIL impacts recommended practices on the success of IT outsourcing arrangement.

The impact of switching costs on the decision to retain or replace IT outsourcing vendors

While the IT outsourcing market is growing, outsourcing vendors are being replaced more frequently by firms. Since replacing vendors can affect the stability and quality of the IT services a firm receives, it is important to understand the drivers behind the decision to replace/retain vendors. This paper examines the impact of switching costs on this decision. We classify the various examples of switching costs into three categories (relational, financial and procedural) and develop a model to explain their role in the decision to replace or retain a vendor. The model also includes possible moderators of the relationship between switching costs and the vendor replacement decision. This model will be evaluated through a series of case studies of firms who have made this decision, and the refined model will be tested with a survey of IT outsourcing managers.

Enabling innovation in information technology outsourcing : an empirical study

Information technology outsourcing has become a pervasive and important phenomenon in business organizations and there is substantial evidence about its benefits and pitfalls. Initially, firms used outsourcing as a way to lower costs, gain access to expertise and focus on core activities. Recently, there is a shift in focus and more firms are outsourcing to attain innovative products and services. However, current research is still unclear about how innovation can be achieved through outsourcing. Drawing predominantly from the dynamic capability theory, the objective of this paper is to explore how absorptive capacity unfolds as a process within and between firms when client firms outsource their information technology services with expectations of innovation generation. In this paper, we propose a research model that links absorptive capacity to innovation generation. We draw on three case studies to focus on how absorptive capacity, as a process, impacts innovation generation. Results show that assimilation and transformation stages are critical in generating radical innovation while acquisition and exploitation play a key role in incremental innovation. The implications of these findings for both researchers and practitioners are discussed.