Antecedents of Onshore and Offshore Business Process Outsourcing

This paper proposes a theoretical framework for adoption of onshore and offshore business process outsourcing (BPO) by firms. Our analysis of data from 244 firms publicly traded in the United States indicates that firms with a stronger information technology infrastructure and business process knowledge are more likely to engage in onshore and offshore BPO. We also find a positive association between offshore BPO and cost-cutting business strategy, and between offshore BPO and IT department focus on innovation. This study makes three contributions. First, we integrate multiple streams of literature (transaction cost economics and capabilities) to create a theoretical framework to understand the drivers of BPO. This theoret- ical framework extends the emerging literature on BPO. Second, we establish a link between IT infrastructure and BPO, using contributions from the information systems literature on IT outsourcing and business process management. Third, we distinguish between onshore and offshore BPO, including contributions from the inter- national business literature on internationalization, to identify any differences between onshore and offshore BPO

Investigating the Information Systems Heterarchy

This article assesses how one IS organization is changing in response to the increased globalization of software development and posits the emergence of a new form of multi-national enterprise (MNE)—the heterarchy. Data from two projects create new insights into the structures and behaviors of ISMNEs as they adapt to global systems development. The article identifies four primary dimensions of impact—cultural, economic, operational, and organizational—and suggests how such organizations are evolvin

Factors Influencing Knowledge Transfer in Onshore Information Systems Outsourcing in Ethiopia

Knowledge transfer in onshore information systems (IS) outsourcing projects in Africa is an important but under-researched phenomenon. This study focuses on the client-vendor perspective and examines the factors that influence knowledge transfer in onshore information systems outsourcing in Ethiopia. Conceptually, knowledge-based perspectives of IS outsourcing is used to identify an initial set of factors to frame the empirical study. This is followed by semi-structured interviews with ten project managers. The findings indicate that five key factors, namely mutual absorptive capacity, mutual learning intent, mutual trust, mutual disseminative capacity and project staff turnover influence knowledge transfer in outsourced IS projects. The results suggest that development and management of the resources, processes and behaviors implied by these factors are vital to ensure successful inter-organizational knowledge transfer and to reverse or minimize the failure rates of outsourced IS projects. The study concludes with implications for research and practice

Assessing the impacts of IS offshoring: preliminary conclusions questioning the validity of cultural consideration

This paper defines an analytic framework with which to research the impact of IS offshoring on its various stakeholders and applies this to two significant case studies of offshoring in the financial services industry. It presents conclusions on one particular segment of the research programme, namely the extent to which IS offshoring drives cultural change for IS practitioners in offshore locations. It concludes that the resultant impact is notable, but not different in any significant way to that experienced by any IS practitioner who works overseas. Further, the cultural differences between onshore and offshore practitioners tend to diminish quickly as they adapt to new cultural environments

How Does Customer Service Offshoring Impact Customer Satisfaction?

Information technology (IT) plays a vital role in customer relationship management (CRM), because CRM processes include the collection and analysis of customer information, firms use technology tools to interact with customers, and IT created the conditions under which firms can offshore CRM processes. Customers have negative perceptions toward offshoring, which suggests that firms might be reluctant to offshore IT-enabled CRM processes. However, firms have significantly increased offshoring for CRM processes, presenting a conundrum. Why would firms increase offshoring for CRM processes if there could be a risk to customer satisfaction? This paper helps to resolve the conundrum by studying the impact of CRM sourcing on customer satisfaction with the firm’s products and services, as measured by the American Customer Satisfaction IndexTM. We analyze data for 150 North American firms and business units over a nine-year period. Front office offshore outsourcing and front office onshore outsourcing are both negatively associated with customer satisfaction, which suggests that negative customer perceptions may be due to the firm boundary dimension rather than the geographic location dimension. Front office offshore outsourcing is not statistically significant for services firms, which suggests that customers are more accepting of offshore providers in a service setting. Over time, the coefficient for back office offshore outsourcing has become more positive, which suggests that firms may expect to see a similar improvement for front office offshore outsourcing in the future. Our empirical results provide a basis to understand why firms have increased IT-enabled CRM offshoring despite short-term risks to customer satisfaction

Antecedents of success in IS offshoring projects - Proposal for an empirical research study

The paper presents a research model and a measurement instrument for a research-in-progress study on the antecedents of success in IS offshoring projects. In this empirical-confirmatory study, we intendto analyse the impact of the constructs “offshoring expertise”, “trust in offshore service provider”, “project suitability”, “knowledge transfer”, and “liaison quality” on offshore project success. Constructs and indicators are derived from an extensive literature review. We plan to formulate astructural equation model and to test it using partial least squares (PLS) as an analysis technique. Our research model addresses the paucity of research that quantitatively examines offshoring success

Control, Process Facilitation, and Requirements Change in Offshore Requirements Analysis: The Provider Perspective

Process, technology, and project factors have been increasingly driving organizations to offshore early software development phases, such as requirements analysis. This emerging trend necessitates greater control and process facilitation between client and vendor sites. The effectiveness of control and facilitation has, however, not been examined within the context of requirements analysis and change. In this study, we examine the role of control and facilitation in managing changing requirements and on success of requirements gathering in the Indian offshore software development environment. Firms found that control by client-site coordinators had a positive impact on requirements analysis success while vender site-coordinators did not have similar influence. Process facilitation by client site-coordinators affected requirements phase success indirectly through control. The study concludes with recommendations for research and practice

Antecedents and drivers of IT-business strategic alignment: Empirical validation of a theoretical model

Aligning information technology (IT) strategy with business strategy has been one of the top concerns of practitioners and scholars for decades. Despite the documented positive effects of strategic alignment on organizational success, only a few organizations consider themselves in alignment. Although numerous studies exist about how to accomplish IT-business alignment, empirical studies based on strong theories have been rare in the literature. This study attempts to fulfill this gap by proposing and empirically validating a comprehensive strategic alignment model. Drawing on prior literature, we identified five antecedents of alignment; centralization, formalization, shared domain knowledge, successful IT history and relationship management. We further hypothesized that the effects of these antecedents are mediated by two drivers of alignment, which are conceptualized as the level of connection of IT and business planning and the level of communication between IT and business managers. Using survey data and structural equation modeling methodology, we show that both drivers had significant effects on alignment, and the effect of connection is about twice that of communications. Our findings also confirm the effects of all antecedents except centralization. Overall, the main contribution of this study is the development and empirical validation of a comprehensive strategic alignment model, providing a more ample prescriptive insight for managing IT-business strategic alignment