A Conjoint Approach to Understanding IT Application Services Outsourcing

The sourcing of application development is becoming increasingly complex. While much prior work has investigated sourcing in a homogeneous marketplace, sourcing choices have increased in complexity, with a myriad of choices ranging from insourcing to domestic outsourcing to engaging Application Service Providers (ASP) to offshoring . In this study, based upon four organizational theories (Transaction Cost, Resource-Based View, Resource-Dependence View, and the Knowledge-Based View of the Firm), we suggest 10 attributes that firms consider when deciding upon outsourcing of applications. We tested the attributes’ strength by performing conjoint analysis on data collected from 84 IS executives. We constructed profiles, which are combinations of attributes having different levels. Each executive responded to 18 such distinct profiles and selected corresponding outsourcing choices. Our results found that the three most significant drivers of an IT application service choice were cost, risk, and vendor capability. However, the importance of these drivers varied across the different sourcing options. Based upon this, we offer implications for decision-makers and researchers, along with directions for future research

Mobile Communications Industry Scenarios and Strategic Implications for Network Equipment Vendors

Mobile infrastructure markets have changed dramatically during the past years. The industry is experiencing a shift from traditional large-scale, hardware-driven system roll-outs to software and services -driven business models. Also, the telecommunications and internet worlds are colliding in both mobile infrastructure and services domains requiring established network equipment vendors and mobile operators to transform and adapt to the new business environment. This paper utilizes Schoemaker's scenario planning process to reveal critical uncertain elements shaping the future of the industry. Four possible scenarios representing different value systems between industry's key stakeholders are created. After this, five strategic options with differing risk and cost factors for established network equipment vendors are discussed in order to aid firm's strategic planning process. --

Key Decision-making Phases And Tasks For Outsourcing Information Technology

Outsourcing has become an attractive option for today\u27s organisation. Since outsourcing Information Technology (IT) is a relatively new phenomenon in Australia, little research has been conducted as to IT management strategies needed when considering outsourcing. To guide management in the decision whether or not to outsource IT, the study developed and tested a decision-making model comprising the phases of intelligence, analysis and planning, strategy selection, action, and evaluation and monitoring. The significance of decision phases and tasks contained in the model was established through a survey of major Australian organisations. The sample included Australia\u27s top 390 companies. Such organisations would be likely to have large IT installation and therefore would have greater knowledge of IT outsourcing. The model was also applied in four major case studies to contribute to the survey and to help in interpreting the survey results. Respondent experiences in making IT outsourcing decisions were discussed. The study found that the \u27action\u27 phase of IT outsourcing is the most important decision-making phase. It is largely determined by the track record and the ability of the potential vendor to provide high service levels for the client. The need for an acceptable level of service is also strongly apparent when management evaluates and monitors the outcome of IT outsourcing. In recognition of the importance of the action phase the study presented an expanded model. It shows an expanded representation of the activities, presented in life eyrie form, related to selecting a suitable vendor and entering into an outsourcing contract. The study concluded that the proposed model was sufficiently comprehensive and structured to be a useful guide for IS outsourcing decision making. It enabled decision makers to consider complex, wide ranging and interrelated decision criteria concerning IS outsourcing for their particular circumstances and needs. Knowledge of the above findings should provide the following benefits: *The identification and description of phases, tasks and subtasks provides a checklist of what needs to be taken into account during IT outsourcing decision-making; *The identification of key phases, tasks and sub tasks will help management and others to focus on critical areas that need to be managed well in order for IT outsourcing to be successful; *The identification of the action phase as the most important phase enables management attention to be particularly focussed; *The framework can be used on a \u27as needed\u27 basis thereby making it useful for different outsourcing decision scenarios and situations. The study concludes with the research limitations and suggestions for future research

Strategies for global information systems development

Developing global information systems is a formidable task. Multinational companies operate in regions that are thousands of miles, many time zones, and many cultures away from headquarters. Organizing the activities and aligning the tasks and mindsets of people that are so far apart and to change the way that business is conducted through the use of IS is a major challenge. This study discusses alternative global IS development strategies and the factors that impact their selection. Four systems from a large transportation company are presented as real life examples to demonstrate the viability of these strategies and the accompanying factors

APPLICATION OUTSOURCING IN THE BANKING INDUSTRY – ITO MODEL

Information Technology Outsourcing (ITO) in terms of the replacement of the in-house production of IT activities by the use of third party suppliers had already started in the 1960s and has increased considerably. For 2013, the Gartner Group expected that the global ITO market would reach a volume of 288 bn US dollars. Until 2017, the market should grow on average about 5.4% yearly. Despite the rich set of experiences companies have already had with ITO, the chances of success are seen as at best 50:50. Currently, the dramatic growth of ITO is accompanied by backsourcing of formerly outsourced IT functions or reports about dissatisfaction and problems with ITO. Scientists put ITO failures or problems down to a lack of modelling of all the possible factors affecting ITO success and demand a specific ITO theory as a basis for better explaining and predicting successes and failures in an IT sourcing context. This thesis takes up this research gap. The aim of this thesis is to develop a novel ITO Model which aids organisations in planning and implementing ITO solutions by guiding them through the ITO process steps of preparation, selection, contract, transition, execution, and post-deal comprising a comprehensive picture of the weighted aspects relevant to ITO success and their interdependencies. In order to achieve this aim, the following objectives were established for this thesis: raising the topical level of scientific knowledge of the last decades about successinfluencing factors in the ITO field based on an extensive literature survey of 48 scientific articles deriving ITO success factors from empirical research work; structuring of this success factor knowledge by the development of two ITO taxonomies (taxonomy of success factors and taxonomy of success factor interdependencies); testing its practical applicability on the basis of 8 real long-running application outsourcing cases in the banking industry; further development of the success factor knowledge by identification of weightings and the temporal relevance of relevant success factors / success factor interdependencies within the ITO process. Design of the novel ITO Model based on the empirical knowledge gained by development of rules for relevant success factors and success factor interdependencies, by arrangement of these rules in temporal order within the ITO process and by assignment of these rules to four levels of environment

REVIEWING OUTSOURCING CONTROVERSY IN INDONESIA (An Exploratory Study of Human Resources Outsourcing Practice in Semarang City)

Outsourcing in Indonesia is still a controversy. The different concept of outsourcing between employers (vendors and users), employees/outsourced workers, and government makes another problem in outsourcing implementation, especially in industrial relationship either in enterprise and macro level. This study aims to determine the concept of outsourcing of each element of the tripartite, the problems that arise in the implementation, and solutions from each party, in dealing with the practice of the working system. The problems under study, based on specific issues related to industrial relations, including: wages, welfare programs, health and safety, discrimination, job security, and dispute resolution, and termination of employment. This qualitative research is an exploratory, with the data collection methods: focus group discussions, observations, interviews, and study documentation. The data collected from employers (vendors and users), the national unions, worker outsourcing, and government within the scope of Semarang city. The results showed that the problems that arise due to differences in each party's conception of the tripartite elements. Uncertainty rules of outsourcing is a major problem, giving rise to labor flexibility in the implementation, which implies profitable for each party, especially the workers of outsourcing. In the end, the regulation enforcement related to the implementation of the outsourcing firm is badly needed, to compromise the disputes of workers and employer interests

A New Approach for Evaluating the Order Fulfillment Process Options of B2C Horizontal Portals Using DEA (Data Envelopment Analysis)

By using the traditional statistical or operations research methods for deciding the product-delivery logistics, the portal companies are not using their competitive advantages on being more e-enabled, informed and computationally able than their traditional counterparts. In this paper, we show some typical characteristics of the portals like their handling of a huge range of goods in terms of transactional values or volumes. Subsequently, we have identified three types of generic product-delivery logistics of the portals with various intermediate entities or trading partners. Then, a completely different approach using an extreme point method rather than the traditional central-tendency-based statistical methods has been suggested