Outsourcing and offshoring engineering projects:understanding the value, sourcing models, and coordination practices

In this paper, we review recent developments in the field of outsourcing and offshoring and the implications for engineering management. We examine three aspects involved in outsourcing and offshoring, namely, sourcing models, coordination, and value extracted from outsourcing projects. We conclude that additional research is needed on recent trends in outsourcing and the impact of such change process on the practice of engineering management. © 2011 IEEE.

Innovation in outsourcing:towards a practical framework

The outsourcing industry is now up for a new challenge: to understand how innovation can be realized from outsourcing engagements. While innovation has been explored and prized within businesses for decades, it is a relatively new topic in the context of outsourcing. And, as such, the perceptions regarding what innovation in outsourcing is, what inhibits or enables innovation in outsourcing, and what client firms are willing to do to ensure they benefit from innovation in outsourcing are still being defined. This paper provides insight into some of the critical aspects in innovation in which both client firms and vendors have taken interest in recent years. We go beyond the simplistic approach we have seen in some recent reports that advocates for the development of trust and close relationships between client firms and vendors as the main enablers of innovation in outsourcing. In our view, innovation in outsourcing can be properly understood only when both contractual and relational aspects are examined as well as the nature of the innovation, i.e. incremental or radical, is explored. Further, we posit that the sourcing model applied has also an impact on the ability to innovate. © 2011 Springer-Verlag.

New studies in global IT and business service outsourcing:5th global scourcing workshop 2011, Courchevel, France, March 14-17, 2011, revised selected papers

This book contains 11 carefully revised and selected papers from the 5th Workshop on Global Sourcing, held in Courchevel, France, March 14-17, 2011. They have been gleaned from a vast empirical base brought together by leading researchers in information systems, strategic management, and operations. This volume is intended for use by students, academics, and practitioners interested in the outsourcing and offshoring of information technology and business processes. It offers a review of the key topics in outsourcing and offshoring, populated with practical frameworks that serve as a tool kit for students and managers. The topics discussed combine theoretical and practical insights, and they are extensively illustrated by case studies from client and vendor organizations. Last but not least, the book examines current and future trends in outsourcing and offshoring, paying particular attention to how innovation can be realized in global or outsourced software development environments.

An Investigation into Outsourcing Practice in Ireland:A New Direction in Logistics and Supply Chain Management

Companies are increasingly focusing on the development of core competencies as an integral part of their overall strategy development and implementation. The corollary of this is that functions regarded as being non-core are being outsourced. This paper investigates the case for and against outsourcing and in addition what is happening in Ireland regards outsourcing. Furthermore to analysis of current literature in the field, an Irish-wide postal and e-mail survey, as well as three case studies revealed many interesting facts. The key findings of the work are manufacturing outsourcing is now the most popular function to be outsourced for both small to medium sized enterprises (SMEs) and large enterprises. Large enterprises (LEs) do not prepare or examine hidden costs more than SMEs, nor do they differ much in relation to the use of consultants. Furthermore, the importance of time spent on preparing or producing contract, and the impact the contract can have on the supplier-buyer relation do not differ significantly. It was found that most companies outsourced within Ireland, which led to further investigation in that area. In relation to logistics outsourcing specifically, this has become very important in the supply chain over the last 20 years as an activity that was traditionally handled by firms as a support function. At that time logistics activities such as warehousing, distribution, transportation and inventory management were given low priority compared with other business functions within the organisation. However, since the customer has become more demanding, the logistics function has now become a source of competitive advantage and there has been a growing emphasis on providing good customer service.

Outsourcing:assessing the risks and benefits for organisations, sectors and nations

Purpose - This research aims to assess the risks and benefits of outsourcing for organisations, sectors and nations. The literature on outsourcing contains little evidence of research on holistic issues of its impact at systems levels beyond the firm, notably sectors and nations. Design/methodology/approach - A Delphi study with senior strategists from private and public sectors captured perspectives and specific observations on benefits and risks of outsourcing. Emergent issues on outsourcing policy, strategy and decision-making processes were synthesised into a framework for analysing factors associated with outsourcing. Findings - The findings suggest that a more holistic view of outsourcing is needed, linking local, organisational issues with sector and national level actions and outcomes. In this way, aggregate risks and benefits can be assessed at different systems levels. Research limitations/implications - Future research might address the motivations for outsourcing; currently there is little research evidence to assess whether outsourcing is a mechanism for failing to solve internal problems, and moving responsibility and risk out of the firm. Additionally most outsourcing research to date has concentrated on an activity either being "in" or "out"; there is little research exploring the circumstances in which mixed models might be appropriate. Practical implications - The framework provides an aid to research and an aide memoire for managers considering outsourcing. Originality/value - This paper contributes to knowledge on understanding of outsourcing at different systems levels, particularly highlighting the implications of outsourcing for sectors and nations. Previously most research has focused at the level of the firm or dyadic relationship. © Emerald Group Publishing Limited.

HR outsourcing:the impact on HR role, competency development and relationships

The business benefits of an outsourcing strategy are well documented, and HR is encouraged to outsource in order to add value. Yet little is known about how HR outsourcing affects the HR role, competencies and relationships with senior management. These issues are examined through 27 semi-structured interviews with senior HR professionals, comparing HR departments engaged in HR outsourcing with those maintaining full in-house HR provision. The findings indicate that HR outsourcing stymies HR role transformation. HR outsourcers experienced limited skill development and an increased focus on cost reduction at the expense of their strategic position. In contrast, non-HR outsourcers actively engaged in other parts of the business, developing competencies that garnered trust and support of senior managers. The benefits of an external HR community appear limited. The study suggests that an 'internal' HR community is better placed to enhance HR departmental roles. © 2013 John Wiley & Sons Ltd.

Outsourcing in Ireland:a literature review, survey and case study perspective

This paper investigates what is happening in Ireland at the moment regards outsourcing. It looks into the literature review and the survey conducted. The research took place over a period of two years, initially as a literature review, and then the survey was conducted through the mediums of e-mail and the postal service. The survey analysis found that Ireland was the most likely place for Irish companies to outsource to, and that nearly 40 percent of the companies that have been surveyed have started on their latest outsourcing initiative since 2004. This indicates that outsourcing is still important on the Island on Ireland, and is important management strategy in terms of SCM (supply chain management). It further shows that Irish companies have confidence in the fact that outsourcing can help their companys’ in some way. The purpose of the literature review and the survey was to come up with an outsourcing roadmap for companies that are considering outsourcing. It builds on what is already in the literature to provide what is felt a comprehensive guide for companies that outsource.

Outsourcing in Ireland:a literature review, survey and case study perspective

Outsourcing, or offshoring as it is now known, has been around for many decades. In the beginning it was only the very peripheral activities that were blue-collar (lower skilled) work outsourced, but this is now all changing with the outsourcing of white-collar jobs. Historically outsourcing was used when organisation could not perform to world-class excellence in all sectors of the organisation due to incompetence of staff and/or management, lack of capacity, financial pressures, and/or technological pressures. The research currently underway is initially focusing on a literature review of current outsourcing applications in the market place and what impact outsourcing has on business performance. This paper will present the findings of the initial literature review. It will also discuss the methodology being followed to explore the Irish Industrial Sector.

Outsourcing:an Irish perspective

This paper investigates three case studies with regards their outsourcing initiatives from an Irish perspective, the benefits and problems they encountered, the contracts they have constructed, and where they have outsourced and the reasons behind them. The research took place over a period of two years, and the information for the case studies was gleaned from a number of sources including: published papers about the companies, the company websites, annual financial reports, the questionnaire they filled out, and interviews with key decision making personnel in the company. Follow up interviews were conducted where it was felt they were required. Key findings were that: it is very important to have the outsourcing initiative driven from the top down, and it is imperative to construct a contract that promotes a relationship based on mutual trust and respect, the use of Ireland for outsourcing, and the benefits and problem companies have experienced.