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.

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.

Coercive, Normative, and Mimetic Influences on the Assimilation of BCM in Outsourcing Relationships

Today many business processes are based on IT systems. These systems are exposed to different threats, which may lead to failures of critical business pro-cesses. Thus, enterprises prepare themselves against threats and failures of critical IT systems by means of Business Continuity Management (BCM). The phe-nomenon of outsourcing introduces a new dimension to BCM. In an outsourcing relationship the client organization is still responsible for the continuity of its processes but does not have full control over the implemented business continuity measures. In this paper we build a research model based on institutional and assimilation theories to describe and explain how and why BCM is assimilated in outsourcing relationships. In our case studies we found evidence that primarily coercive and normative pressures influence the assimilation of BCM in outsourcing relationships and support the explanation of variation across enterprises. Mimetic pressures seem to influence the assimilation but do not explain variations.

Designing gainsharing model variations with logistics service company

This thesis studies, in collaboration with a Finnish logistics service company, gainsharing and the development of a gainsharing models in a logistics outsourcing context. The purpose of the study is to create various gainsharing model variations for the use of a service provider and its customers in order to develop and enhance the customer’s processes and operations, create savings and improve the collaboration between the companies. The study concentrates on offering gainsharing model alternatives for companies operating in internal logistics outsourcing context. Additionally, the prerequisites for the gainsharing arrangement are introduced. In the beginning of the study an extensive literature review is conducted. There are three main themes explored which are the collaboration in an outsourcing context, key account management and gainsharing philosophy. The customer expectations and experiences are gathered by interviewing case company’s employees and its key customers. In order to design the gainsharing model prototypes, customers and other experts’ knowledge and experiences are utilized. The result of this thesis is five gainsharing model variations that are based on the empirical and theoretical data. In addition, the instructions related to each created model are given to the case company, but are not available in this paper

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.

Asset specificity and behavioral uncertainty as moderators of the sales growth-employment growth relationship in emerging ventures

New venture growth is a central topic in entrepreneurship research. Although sales growth is emerging as the most commonly used measure of growth for emerging ventures, employment growth has also been used frequently. However, empirical research demonstrates that there are only very low to moderately sized correlations between the two (Delmar et aL, 2003; Weinzimmer, et al., 1998). In addition) sales growth and employment growth respond differently to a wide variety of criteria (Baum et al., 2001; Delmar et al., 2003). In this study we use transaction cost economics (Williamson, 1996) as a theoretical base to examine transaction cost influences on the addition of new employees as emerging ventures experience sales growth. \\le theorize that transaction cost economics variables will moderate the relationship between sales growth and employment growth. W'e develop and test hypotheses related to asset specificity, behavioral uncertainty, and the influence of resource munificence on the strength of the sales growth/ employment growth relationship. Asset specificity is theorized to be a positive moderator of the relationship between sales growth and employment growth. When the behavioral uncertainty associated with adding new employees is greater than that of outsourcing or subcontracting, it is hypothesized to be a negative moderator of the sales growth/employment growth relationship. We also hypothesize that resource scarcity will strengthen those relationships.

Intra-organizational information asymmetry in offshore ISD outsourcing

Purpose - Contemporary offshore Information System Development (ISD) outsourcing is becoming even more complex. Outsourcing partner has begun ‘re-outsourcing’ components of their projects to other outsourcing companies to minimize cost and gain efficiencies. This paper aims to explore intra-organizational Information Asymmetry of re-outsourced offshore ISD outsourcing projects. Design/methodology/approach - An online survey was conducted to get an overall view of Information Asymmetry between Principal and Agents (as per the Agency theory). Findings - Statistical analysis showed that there are significant differences between the Principal and Agent on clarity of requirements, common domain knowledge and communication effectiveness constructs, implying an unbalanced relationship between the parties. Moreover, our results showed that these three are significant measurement constructs of Information Asymmetry. Research limitations/implications - In our study we have only considered three main factors as common domain knowledge, clarity of requirements and communication effectiveness as three measurement constructs of Information Asymmetry. Therefore, researches are encouraged to test the proposed constructs further to increase its precision. Practical implications - Our analysis indicates significant differences in all three measurement constructs, implying the difficulties to ensure that the Agent is performing according to the requirements of the Principal. Using the Agency theory as theoretical view, this study sheds light on the best contract governing methods which minimize Information Asymmetry between the multiple partners within ISD outsourcing organizations. Originality/value - Currently, to the best of our knowledge, no study has undertaken research on Intra-organizational Information Asymmetry in re-outsourced offshore ISD outsourcing projects.

Vendors' perspectives of coordination in the information technology offshore outsourcing industry : An exploratory study from the Philippines

This study investigates how offshore information technology (IT) service providers (vendors) coordinate work with their clients (employers) in order to succeed in the global IT offshore outsourcing industry. We reviewed literature on coordination studies, interviewed offshore service providers in the Philippines, and used thematic analysis to analyse coordination practices from the point of view of these individual vendors in a newly industrialized country. We used Olson and Olson's framework on 'collaboration at a distance' as a lens to structure the results. The study provides an understanding of vendors' individual attitudes towards the coordination of distributed work and draws attention to how differences in power affect the work situation of vendors, and by implication all stakeholders. We offer this insight as a way to enhance existing CSCW frameworks, by imbuing them with the perspective of non-equal relationships. The study found that vendors were generally able to produce outputs that satisfy their clients, however these results were only achieved because individuals were willing to take risks and make sacrifices in their personal lives. The relationship was further characterised by a complex interplay between the client's control of the overall work arrangements and the vendors' ability to establish a level of autonomy in their work practices and their flexible use of coordination tools.

IT outsourcing issues in Singapore : the vendor's perspective

Most studies undertaken in the area of IT outsourcing seem to focus only on the customer’s perspective leaving a gap in knowledge about the vendor’s perspective. This study aims to correct this deficiency by investigating the views of four organisations providing IT services in Singapore, and comparing this to the current literature base of customer views. The findings showed that the vendor’s views about security, contract management and flexibility differed from the customer’s point of view. However, two issues, partnerships and vendor inexperience, seem to match the vendor issues found in this study. Additionally, two approaches were found to be used by vendors in the IT outsourcing activities, multiple-team approach and single-team approach. A multiple–team approach is likely to be used by vendors having a contract-based relationship and single-team approach is likely to be used by vendors having a partnership-based relationship.

Reconceptualising outsourcing in the public sector : choices and outcomes

National Competition Policy’s introduction encouraged the use of outsourcing in the public sector, but variations in the extent and types of services outsourced were evident. Through reviewing the economic and political literature, this paper has uncovered six reasons for outsourcing that straddle the two paradigms. The desire to reduce costs and increase efficiency, focus on core competitive advantage, introduce workforce flexibility, manage industrial relations’ problems, satisfy decision-makers’ personal objectives and adhere to the neo-liberal government agenda are discussed. The paper puts forward a number of models which delve into the relationship between the theoretical factors which economic and political theorists have proposed as being important in making the decision to outsource and delineates between those factors which are perceived by decision-makers as important in their reasoning and those which are unperceived but impact on the outcomes. It concludes that is only by understanding the complex relationship between reasons, and perceived and unperceived factors, will outcomes be able to be predicted.

The derivation of a conceptual model for outsourcing IT security

IT security outsourcing is the establishment of a contractual relationship with an outside vendor to assume responsibility for one or more security functions. Outsourcing in IS has had a variable history of success and the complexity of the decision making process leads to a substantial degree of uncertainty. This is especially so in the realm of IS security since the protection of both hardware and software systems in is placed in the hands of an external provider. This is the second paper discussing the improvement of the effectiveness of the decision making process by means of a conceptual model using Soft System Methodology techniques that integrates security benefits, costs and their respective performance measures. In this paper the methodology used to develop the model and its validation are discussed.

The derivation of a conceptual model for IT security outsourcing

IT security outsourcing is the establishment of a contractual relationship between an organization with an outside vendor which assumes responsibility for the organisation’s security functions. Outsourcing in IS has had a variable history of success and the complexity of the decision making process leads to a substantial degree of uncertainty. This is especially so in the realm of IS security since the protection of both hardware and software systems is placed in the hands of an external provider. This paper is a fuller and more comprehensive paper of a previous paper outlining the effectiveness of the decision making process by means of a conceptual model using Soft System Methodology techniques that integratessecurity benefits, costs and their respective performance measures. In this paper the methodology used to develop the model is discussed in detail.

Outsourcing in the Australian health sector : the interplay of economics and politics

Purpose – The paper discusses the reasons and approaches used at three health organisations in introducing outsourcing. It specifically answers the question: why have managers of health organisations outsourced some functions in preference to others?

Design/methodology/approach – This research employs a case study method making use of qualitative analysis. The health organisations were chosen first as representatives of their type, and secondly due to the nature of the outsourcing decisions made. The first health organisation operates in the rural sector; the second is a metropolitan network; and the third is a large metropolitan hospital, which, in contrast to the other two case study organisations, had made only one decision to outsource, producing the largest outsourcing contract in health in Australia. Furthermore, this situation was distinctive as the contract was terminated and re-issued to another private sector organisation.

Findings – The reasons for outsourcing varied within and between health organisations. Although generally they were made on the bases of the characteristics of the labour market, employee skill levels and the nature of industrial relations, the perception of what was core, the level of internal management skills, the ability of internal teams to implement change and the relationship between management and staff. Even though cost savings and a downsized labour force resulted, generally these occurred even when services were not outsourced, through the use of other change processes, such as introducing new technology, changing structures and promoting workforce flexibility. The interplay of political reasons and economic effects was evident along with the political nature of the decision-making and processes used. The paper concludes that the power of managers was a moderating factor between the desire for outsourcing and whether outsourcing actually occurred.

Research limitations/implications – Although this research was conducted solely within the health sector it has implications for other public sector bodies and the private sector.

Practical implications – Managerial decision making can be enhanced with the exploration of the full complement of reasons for the outsourcing decision.

Originality/value – The paper has value to both academics researching in the public sector and public sector managers.