Using communication to mitigate the challenges of outsourced projects

Abstract: The multi-organisational mode of outsourcing projects increases the significance and complexity of project communication. Communication is essential for any organisation, offering the necessary structures within which people may successfully work together, make decisions and act to accomplish organisational goals. If project necessities are not communicated accurately, negative outcomes are frequently the result, proving detrimental to the organisation and the outsourced project. Literature review revealed ten common challenges to the outsourcing of projects, with mitigation strategies identified to minimise the impacts of such challenges. This study makes use of the case study research method and semi-structured interviews as the primary means of data collection. The method of analysis chosen for the study was the qualitative approach of thematic analysis. A cross-case analysis was done, similarities and variations were grouped together, and themes were identified based on participants’ responses. These were compared to the literature findings. It was found that six of the ten challenges were experienced in all three case studies. Four were unique to particular projects. The findings indicate that challenges affected project teams’ ability to communicate effectively, and that the identified mitigation strategies all included the component of communication, whether synchronous or asynchronous. With the achievement of the research objective, this study will contribute to the existing body of knowledge within the project management fraternity and within academia. Knowledge gained may be used by project management professionals and will, it is hoped, enhance the way projects are outsourced and managed in the engineering sector.M.Phil. (Engineering Management

A catalog of information systems outsourcing risks

Information systems outsourcing risks are a vital component in the decision and management process associated to the provision of information systems and technology services by a provider to a customer. Although there is a rich literature on information systems outsourcing risks, the accumulated knowledge on this area is fragmented. In view of this situation, an argument is put forward on the usefulness of having a theory that integrates the various constructs related to information systems outsourcing risks. This study aims to contribute towards the synthesis of that theory, by proposing a conceptual framework for interpreting the literature and presenting a catalog of information systems outsourcing risks. The conceptual framework articulates together six key risk elements, namely dangers, negative outcomes, undesirable consequences, factors and mitigation actions. The catalog condenses and categorizes the information systems outsourcing risk elements found on the literature reviewed, both from the perspective of the outsourcing customer and from the perspective of the outsourcing provider. Proposals for subsequent work towards the generation of the theory of information systems outsourcing risk are suggested

Can anybody help? : mitigating IS development project risk with user

In this paper we aim to gain insight into the relationship between user participation modes and project risk factors, and then we construct a model that can be used to determine how user participation can be successfully applied in ISD projects with a given set of risk factors. We perform an in-depth literature review, which aims to clarify the concept of user participation as part of risk management. We then report on the results of a case study in Cap Gemini where we conduct an exploratory research of the application of user participation in practice. For this exploratory research, a quantitative and qualitative research method was designed in the form of a survey and interviews. Though the results from our case study we gain insight into the relationship between user participation and IS project risk and also determine how user participation can be used to mitigate such risk

Offshoring effectiveness: Measurement and improvement with optimization approach.

This study takes a refreshing look at IT outsourcing from a vendor\u27s perspective and discusses best practices required to effectively manage offshore business needs and offshoring effectiveness. We have conducted a detailed investigation to learn why outsourcing ventures fail, how to effectively measure up to service provider capability, and how to deliver strategic value to the end customer. Extant literature does not talk about the vendor\u27s issues and problems in outsourcing, and our investigation emphasized the vendor\u27s perspective on offshoring strategy and offshore resource effectiveness as the two important differentiators in a make-or-buy decision. Measurement metrics for each of the two items were devised to estimate their effect on offshoring effectiveness. We spoke to some of the top 10 IT vendors in India, collected offshoring data from both clients and vendors, and used the data to validate our decision framework. The framework helps us to investigate current industry practices in IT outsourcing, identify issues and problems beyond the obvious advantages of outsourcing, and propose measures to assess offshoring effectiveness. The investigation gave us an opportunity to record the best IT practices as well as suggest possible improvements in the service or product delivery cycle to enhance customer experience

Exploring the role of servitization to overcome barriers for innovative energy efficiency technologies – the case of public LED street lighting in German municipalities

In this paper we analyse the case for public application of LED street lighting. Drawing from the energy services literature and transaction cost economics, we compare modes of lighting governance for modernisation. We argue that servitization can accelerate the commercialisation and diffusion of end-use energy demand reduction (EUED) technologies in the public sector if third party energy service companies (ESCo) overcome technological, institutional and economic barriers that accompany the introduction of such technologies resulting in transaction costs. This can only succeed with a supportive policy framework and an environment conducive towards the dissemination of specific technological and commercial knowledge required for the diffusion process

Managing Risk Areas in Software Development Offshoring: A CMMI Level 5 Case

Software companies are increasingly offshoring development to countries with high expertise at lower cost. Offshoring involves particular risk areas that, if ignored, increase the likelihood of failure. However, the offshoring client’s maturity level may influence the management of these risk areas. Against this backdrop, we present an interpretive case study on how managers perceive and mitigate the risk areas in software development offshoring with a mature capability maturity model integration (CMMI) level 5 software company as the client. We found that managers perceived and mitigated most of the offshoring risk areas in accordance with the findings of previous research. However, the risk area of task distribution was a notable exception. In this case, managers perceived high task uncertainty, equivocality, and coupling across sites as risk mitigation rather than risk taking. The paper discusses how and why managers perceived and mitigated the risk areas in this way and the implications for theory and practice in software development offshoring

Risk Mitigation Strategies in Innovative Projects

This chapter discusses the challenge imposed by the dispersed innovation that shifts toward replicating the positive traits of co-location and coupling it with the unique advantages of the global initiative. Key concepts in this chapter include project risk, risk pertinent to the innovative projects, importance of risk mitigation in innovative projects, different risk categorization involved in mitigating risk in innovative projects, risk mitigation planning, risk mitigation strategies in innovative projects, and risk evaluation and mitigation strategies (REMS) in various types of innovative projects including the lesson learnt from the innovative projects to handle project risk by adopting risk mitigation strategies

Public private partnership contract management failure in information technology service delivery: a qualitative inquiry into the South African Department of Labour ERP implementation project

This PhD research project investigated the failure of a Public Private Partnership (PPP) ICT service delivery project between the South African Department of Labour (DOL) and Siemens Information Services (SIS). The research investigated conditions contributing to management failure of the Enterprise Resource Planning (ERP) Implementation project, which had the objective of improving the Department of Labour's service operations and the transfer of ERP technology competence to the DOL. An important objective of this research was to develop an understanding of the special challenges of PPP management in the context of emerging and developing countries. International organizations such as the IMF, World Bank and United Nations (UN) have been encouraging emerging and developing countries to adopt PPPs as vehicles for developing technology competence and improving public sector efficiency. However, little research has been conducted to discover whether these countries have the competencies to successfully implement and manage PPPs. The goal of this PhD study was to develop an understanding of factors and conditions influencing the DOL-SIS PPP failure in order to develop theory and approaches, which could help improve management practices in the area of contracting-out ICT service delivery in the public sector of the Republic of South Africa. The research was guided by an agency theory framework and utilised a multi-method approach to conduct three empirical investigations into the PPP institutional framework, project governance and public accountability aspects of the DOL-SIS project. Some important findings of this research are: (1) Robust institutional policies and governance mechanisms specific to PPPs for ICT service delivery are necessary but not sufficient to combat risks of failure; robust mechanisms for performance monitoring and penalties for shirking are also necessary. (2) Public sector managers need specialised knowledge and competence to effectively manage private partners in the execution of ICT PPP contracts; over dependence on the private partners can significantly increase the risk of project failure, and encourage opportunistic behaviour and shirking by the private partner. (3) Transparent project governance and public accountability mechanisms are necessary to maintaining public support and combating opportunistic behaviour of both private and public partners on a PPP ICT services project. The thesis comprises three empirical studies: Study 1 used an agency theory framework to interrogate the PPP institutional framework to understand its provisions for identifying and managing risk factors in ICT service delivery projects. Study 2 analysed data from interviews with stakeholders, the contract meeting minutes and other relevant documents, guided by the agency theory framework to develop an understanding of project governance challenges. Study 3 focused on identifying public accountability issues and used a critical discourse analysis methodology to interrogate the media discourse concerning the failure of the DOL-SIS ERP Implementation failure. Content analysis with the use of ATLAS/TI and automated tool was used to analyse all the relevant documents for the different studies. The general contribution of this PhD research is an explanatory theory illustrating how interactions among institutional conditions, governance mechanisms, knowledge and management competence deficits, and the behaviour of the PPP actors reinforced dysfunctional organisational conditions, which resulted in project failure. The theory is illustrated using a causal loop modelling technique and a set of five theoretical propositions clarifying the organizational knowledge and competence challenges, which the public sector managers faced, and the consequences of these affecting the success of the PPP project. This is an important contribution to literature on the use of PPPs for ICT service delivery not only in emerging and developing country contexts, but in developed contexts as well. Other contributions specific to the South African perspective are: (1) Study 1 revealed gaps in the institutional framework concerning the management of risks in ICT PPP projects. While South Africa has much experience with managing risks in the engineering and delivery of physical infrastructure, there is a comparable lack experience with managing ICT infrastructure implementation project risks. (2) Studies 1 and 2 reveal gaps in the governance and accountability mechanisms and practices which can be exploited with adverse consequences to the public interest. These studies also point to the importance of robust transparency and governance mechanisms, and high levels of management competence to the effective risk management of PPPs for ICT service delivery. (3) Study 3 reveals importance of the independent media in fostering debate, uncovering evidence, scrutinizing the activities of the actors in the DOL-SIS PPP and defending the public interest. The independent media played a critical role of agitating for public accountability when the DOL was reluctant to do so, and raising issues about SIS underperformance and pushing for public investigation into the governance of the DOL-SIS ERP Implementation project

IT Governance-An Integrated Framework and Roadmap: How to Plan, Deploy and Sustain for Improved Effectiveness

The issues, opportunities and challenges of effectively managing and governing an organization’s Information Technology (IT) demands, investments and resources has become a major concern of the Board and executive management in enterprises on a global basis. A rapidly growing number of organizations have become increasingly dependent on a broad array of technologies to manage and grow their businesses. IT is an integral part of most organizations today and will certainly become more critical in the future. This paper proposes a comprehensive and integrated IT governance framework and roadmap which identifies the appropriate current and emerging best practices methodologies for each of the major IT Governance components that must be addressed in any approach and is critical for companies to achieve more effective alignment and management of IT. The framework can serve as a guideline for any organization to select and customize the appropriate approach applicable to its environment, plans, priorities, capabilities and available resources. The findings and implications are based on extensive primary and secondary research and are grounded in a review of current and emerging industry and government best practices and select case studies of leading global and regional organizations based on the recently published book by the author entitled, “Implementing Effective IT Governance and IT Management,” published by Van Haren Publishers, 2015