Explaining Variations in Client Extra Costs between Software Projects Offshored to India

Gaining economic benefits from substantially lower labor costs has been reported as a major reason for offshoring labor-intensive information systems services to low-wage countries. However, if wage differences are so high, why is there such a high level of variation in the economic success between offshored IS projects? This study argues that offshore outsourcing involves a number of extra costs for the ^his paper was recommended for acceptance by Associate Guest Editor Erran Carmel. client organization that account for the economic failure of offshore projects. The objective is to disaggregate these extra costs into their constituent parts and to explain why they differ between offshored software projects. The focus is on software development and maintenance projects that are offshored to Indian vendors. A theoretical framework is developed a priori based on transaction cost economics (TCE) and the knowledge-based view of the firm, comple mented by factors that acknowledge the specific offshore context The framework is empirically explored using a multiple case study design including six offshored software projects in a large German financial service institution. The results of our analysis indicate that the client incurs post contractual extra costs for four types of activities: (1) re quirements specification and design, (2) knowledge transfer, (3) control, and (4) coordination. In projects that require a high level of client-specific knowledge about idiosyncratic business processes and software systems, these extra costs were found to be substantially higher than in projects where more general knowledge was needed. Notably, these costs most often arose independently from the threat of oppor tunistic behavior, challenging the predominant TCE logic of market failure. Rather, the client extra costs were parti cularly high in client-specific projects because the effort for managing the consequences of the knowledge asymmetries between client and vendor was particularly high in these projects. Prior experiences of the vendor with related client projects were found to reduce the level of extra costs but could not fully offset the increase in extra costs in highly client-specific projects. Moreover, cultural and geographic distance between client and vendor as well as personnel turnover were found to increase client extra costs. Slight evidence was found, however, that the cost-increasing impact of these factors was also leveraged in projects with a high level of required client-specific knowledge (moderator effect).

Der Einfluss kultureller Unterschiede beim IT-Offshoring

Dieser Beitrag zeigt auf der Basis von sechs Anwendungsentwicklung-sprojekten in Indien, welche kulturellen Einflussgrößen bei der Auslagerung von IT-Projekten einzubeziehen sind, wie diese Determinanten den Projekterfolg beeinflussen und durch welche Maßnahmen von Seiten des Managements kulturelle Herausforderungen zur Sicherung des Projekterfolgs gemeistert werden können: - Als kritische Kulturfaktoren haben sich Unterschiede in der Macht-distanz, dem Designverständnis und der aktiven versus passiven Arbeitseinstellung herauskristallisiert. - Diese Faktoren wirken direkt auf wichtige Stellgrößen der Beziehungs-qualität, wie dem Vertrauen, der Leistung des Anbieters, dem Grad der Kooperation und auftretenden Konflikten. Auf diese Weise wirken sie indirekt auf den Erfolg von Offshoring-Projekten. - Eine klare Definition von Rollen und Mechanismen, starke Mitarbeiterführung und ein aktives Kulturmanagement, das eine An- passung an die Kultur des Kunden oder an die des Anbieters beinhaltet, haben sich als effektive Managementmaßnahmen zur Bewältigung kultureller Herausforderungen herausgestellt

Herausforderungen und Chancen der Internationalisierung für mittelständische Softwareunternehmen in Deutschland

Die Internationalisierung ist für Softwareunternehmen im deutschen Mittelstand einerseits ein Muss, um den Anforderungen international ausgerichte-ter Kunden gerecht zu werden, anderseits eröffnet sie der Softwarebranche die Chance, aktiv neue Märkte zu erschließen. Anhand ausgewählter Beispiele deutscher Softwareunternehmen, die bereits international tätig sind, werden in die-ser Studie auf Basis von Experteninterviews Treiber, Strategien und Umsetzungs-ansätze der Internationalisierung vor dem Hintergrund der jeweiligen Eigenschaf-ten der Softwareprodukte dargestellt. Die Ergebnisse zeigen erste Zusammenhänge auf und bieten wichtige Ansatzpunkte für weitere Forschung im Bereich der Internationalisierung von Softwareunternehmen.

The Emergence of Partnership Networks in the Enterprise Application Development Industry - A Global Corporation Perspective

Currently, dramatic changes are happening in the IS development industry. The incumbent system developers (hubs) are embracing partnerships with less well established companies (spokes), acting in specific niches. This paper seeks to establish a better understanding of the motives for this strategy. Relying on existing work on strategic alliance formation, it is argued that partnering is particularly attractive, if these small companies possess certain capabilities that are difficult to obtain through other arrangements than partnering. Again drawing on the literature, three categories of capabilities are identified: the capability to innovate within their niche, the capability to provide a specific functionality that can be integrated with the incumbents’ systems, and the capability to address novel markets. These factors are analyzed through a case study. The case represents a market leader in the global IS development industry, which fosters a network of smaller partner firms. The study reveals that temporal dynamics between the identified factors are playing a dominant role in these networks. A cyclical partnership model is developed that attempts to explain the life cycle of a partnership within such a network.

An Architecture to offer Cloud-Based Radio Access Network as a Service

This paper addresses the novel notion of offering a radio access network as a service. Its components may be instantiated on general purpose platforms with pooled resources (both radio and hardware ones) dimensioned on-demand, elastically and following the pay-per-use principle. A novel architecture is proposed that supports this concept. The architecture's success is in its modularity, well-defined functional elements and clean separation between operational and control functions. By moving much processing traditionally located in hardware for computation in the cloud, it allows the optimisation of hardware utilization and reduction of deployment and operation costs. It enables operators to upgrade their network as well as quickly deploy and adapt resources to demand. Also, new players may easily enter the market, permitting a virtual network operator to provide connectivity to its users.

The use of unmanned aerial vehicles and wireless sensor networks for spraying pesticides

The application of pesticides and fertilizers in agricultural areas is of crucial importance for crop yields. The use of aircrafts is becoming increasingly common in carrying out this task mainly because of their speed and effectiveness in the spraying operation. However, some factors may reduce the yield, or even cause damage (e.g., crop areas not covered in the spraying process, overlapping spraying of crop areas, applying pesticides on the outer edge of the crop). Weather conditions, such as the intensity and direction of the wind while spraying, add further complexity to the problem of maintaining control. In this paper, we describe an architecture to address the problem of self-adjustment of the UAV routes when spraying chemicals in a crop field. We propose and evaluate an algorithm to adjust the UAV route to changes in wind intensity and direction. The algorithm to adapt the path runs in the UAV and its input is the feedback obtained from the wireless sensor network (WSN) deployed in the crop field. Moreover, we evaluate the impact of the number of communication messages between the UAV and the WSN. The results show that the use of the feedback information from the sensors to make adjustments to the routes could significantly reduce the waste of pesticides and fertilizers.

Agent-based Content Retrieval for Opportunistic Content-Centric Networks

In this paper, we describe agent-based content retrieval for opportunistic networks, where requesters can delegate content retrieval to agents, which retrieve the content on their behalf. The approach has been implemented in CCNx, the open source CCN framework, and evaluated on Android smart phones. Evaluations have shown that the overhead of agent delegation is only noticeable for very small content. For content larger than 4MB, agent-based content retrieval can even result in a throughput increase of 20% compared to standard CCN download applications. The requester asks every probe interval for agents that have retrieved the desired content. Evaluations have shown that a probe interval of 30s delivers the best overall performance in our scenario because the number of transmitted notification messages can be decreased by up to 80% without significantly increasing the download time.

Information-Centric Networking in Mobile and Opportunistic Networks

Information Centric Networking (ICN) as an emerging paradigm for the Future Internet has initially been rather focusing on bandwidth savings in wired networks, but there might also be some significant potential to support communication in mobile wireless networks as well as opportunistic network scenarios, where end systems have spontaneous but time-limited contact to exchange data. This chapter addresses the reasoning why ICN has an important role in mobile and opportunistic networks by identifying several challenges in mobile and opportunistic Information-Centric Networks and discussing appropriate solutions for them. In particular, it discusses the issues of receiver and source mobility. Source mobility needs special attention. Solutions based on routing protocol extensions, indirection, and separation of name resolution and data transfer are discussed. Moreover, the chapter presents solutions for problems in opportunistic Information-Centric Networks. Among those are mechanisms for efficient content discovery in neighbour nodes, resume mechanisms to recover from intermittent connectivity disruptions, a novel agent delegation mechanisms to offload content discovery and delivery to mobile agent nodes, and the exploitation of overhearing to populate routing tables of mobile nodes. Some preliminary performance evaluation results of these developed mechanisms are provided.

Towards an SMS-based Social Network for Health Workers in Rural Areas in Myanmar

Seventy percent of the population in Myanmar lives in rural areas. Although health workers are adequately trained, they are overburdened due to understaffing and insufficient supplies. Literature confirms that information and communication technologies can extend the reach of healthcare. In this paper, we present an SMS-based social network that aims to help health workers to interact with other medical professionals through topic-based message delivery. Topics describe interests of users and the content of message. A message is delivered by matching message content with user interests. Users describe topics as ICD- 10 codes, a comprehensive medical taxonomy. In this ICD-10 coded SMS, a set of prearranged codes provides a common language for users to send structured information that fits inside an SMS.

Optimizing Triage and Hospitalization in Adult General Medical Emergency Patients. The Triage Project

Background: Patients presenting to the emergency department (ED) currently face inacceptable delays in initial treatment, and long, costly hospital stays due to suboptimal initial triage and site-of-care decisions. Accurate ED triage should focus not only on initial treatment priority, but also on prediction of medical risk and nursing needs to improve site-of-care decisions and to simplify early discharge management. Different triage scores have been proposed, such as the Manchester triage system (MTS). Yet, these scores focus only on treatment priority, have suboptimal performance and lack validation in the Swiss health care system. Because the MTS will be introduced into clinical routine at the Kantonsspital Aarau, we propose a large prospective cohort study to optimize initial patient triage. Specifically, the aim of this trial is to derive a three-part triage algorithm to better predict (a) treatment priority; (b) medical risk and thus need for in-hospital treatment; (c) post-acute care needs of patients at the most proximal time point of ED admission. Methods/design: Prospective, observational, multicenter, multi-national cohort study. We will include all consecutive medical patients seeking ED care into this observational registry. There will be no exclusions except for non-adult and non-medical patients. Vital signs will be recorded and left over blood samples will be stored for later batch analysis of blood markers. Upon ED admission, the post-acute care discharge score (PACD) will be recorded. Attending ED physicians will adjudicate triage priority based on all available results at the time of ED discharge to the medical ward. Patients will be reassessed daily during the hospital course for medical stability and readiness for discharge from the nurses and if involved social workers perspective. To assess outcomes, data from electronic medical records will be used and all patients will be contacted 30 days after hospital admission to assess vital and functional status, re-hospitalization, satisfaction with care and quality of life measures. We aim to include between 5000 and 7000 patients over one year of recruitment to derive the three-part triage algorithm. The respective main endpoints were defined as (a) initial triage priority (high vs. low priority) adjudicated by the attending ED physician at ED discharge, (b) adverse 30 day outcome (death or intensive care unit admission) within 30 days following ED admission to assess patients risk and thus need for in-hospital treatment and (c) post acute care needs after hospital discharge, defined as transfer of patients to a post-acute care institution, for early recognition and planning of post-acute care needs. Other outcomes are time to first physician contact, time to initiation of adequate medical therapy, time to social worker involvement, length of hospital stay, reasons fordischarge delays, patient’s satisfaction with care, overall hospital costs and patients care needs after returning home. Discussion: Using a reliable initial triage system for estimating initial treatment priority, need for in-hospital treatment and post-acute care needs is an innovative and persuasive approach for a more targeted and efficient management of medical patients in the ED. The proposed interdisciplinary , multi-national project has unprecedented potential to improve initial triage decisions and optimize resource allocation to the sickest patients from admission to discharge. The algorithms derived in this study will be compared in a later randomized controlled trial against a usual care control group in terms of resource use, length of hospital stay, overall costs and patient’s outcomes in terms of mortality, re-hospitalization, quality of life and satisfaction with care.

An IEEE 802.11 energy efficient mechanism for continuous media applications

The widespread deployment of wireless mobile communications enables an almost permanent usage of portable devices, which imposes high demands on the battery of these devices. Indeed, battery lifetime is becoming one the most critical factors on the end-users satisfaction when using wireless communications. In this work, the optimized power save algorithm for continuous media applications (OPAMA) is proposed, aiming at enhancing the energy efficiency on end-users devices. By combining the application specific requirements with data aggregation techniques, {OPAMA} improves the standard {IEEE} 802.11 legacy Power Save Mode (PSM) performance. The algorithm uses the feedback on the end-user expected quality to establish a proper tradeoff between energy consumption and application performance. {OPAMA} was assessed in the OMNeT++ simulator, using real traces of variable bitrate video streaming applications, and in a real testbed employing a novel methodology intended to perform an accurate evaluation concerning video Quality of Experience (QoE) perceived by the end-users. The results revealed the {OPAMA} capability to enhance energy efficiency without degrading the end-user observed QoE, achieving savings up to 44 when compared with the {IEEE} 802.11 legacy PSM.

SDR-based Passive Indoor Localization System for GSM

This study deals with indoor positioning using GSM radio, which has the distinct advantage of wide coverage over other wireless technologies. In particular, we focus on passive localization systems that are able to achieve high localization accuracy without any prior knowledge of the indoor environment or the tracking device radio settings. In order to overcome these challenges, newly proposed localization algorithms based on the exploitation of the received signal strength (RSS) are proposed. We explore the effects of non-line-of-sight communication links, opening and closing of doors, and human mobility on RSS measurements and localization accuracy. We have implemented the proposed algorithms on top of software defined radio systems and carried out detailed empirical indoor experiments. The performance results show that the proposed solutions are accurate with average localization errors between 2.4 and 3.2 meters.

Virtual Infrastructures as a Service enabling Converged Optical Networks and Data Centres

Abstract Cloud computing service emerged as an essential component of the Enterprise {IT} infrastructure. Migration towards a full range and large-scale convergence of Cloud and network services has become the current trend for addressing requirements of the Cloud environment. Our approach takes the infrastructure as a service paradigm to build converged virtual infrastructures, which allow offering tailored performance and enable multi-tenancy over a common physical infrastructure. Thanks to virtualization, new exploitation activities of the physical infrastructures may arise for both transport network and Data Centres services. This approach makes network and Data Centres’ resources dedicated to Cloud Computing to converge on the same flexible and scalable level. The work presented here is based on the automation of the virtual infrastructure provisioning service. On top of the virtual infrastructures, a coordinated operation and control of the different resources is performed with the objective of automatically tailoring connectivity services to the Cloud service dynamics. Furthermore, in order to support elasticity of the Cloud services through the optical network, dynamic re-planning features have been provided to the virtual infrastructure service, which allows scaling up or down existing virtual infrastructures to optimize resource utilisation and dynamically adapt to users’ demands. Thus, the dynamic re-planning of the service becomes key component for the coordination of Cloud and optical network resource in an optimal way in terms of resource utilisation. The presented work is complemented with a use case of the virtual infrastructure service being adopted in a distributed Enterprise Information System, that scales up and down as a function of the application requests.