A Capability Framework for IT Service Integration and Management in Multi-Sourcing

Multi-sourcing, the blending of services from multiple external and internal providers, has gradually become the standard mode of operation in IT outsourcing. It allows companies to assemble a best-of-breed provider portfolio and to reduce costs. A key difference between single- and multi-sourcing is the potential interdependence between services delivered by multiple providers. To deliver a seamless service to the client’s business units, various services often need to be integrated and managed as an end-to-end service. This activity is denoted as service integration and management. Many clients, however, are having difficulties implementing and performing this important task. Therefore, we explore which IT capabilities organizations need to build for performing service integration and management. \ \ After deriving challenges from literature, we perform a multi-stage qualitative study based on a series of focus group sessions and expert interviews. In a qualitative content analysis, we develop a framework of IT capabilities which enable successful service integration and management by addressing the key challenges. We, thus, aim to contribute to more effective multi-sourcing solutions in practice and to lay the groundwork for future research in this important field

An Analysis of IT Sourcing Practices: Identification and Exploration of Cultural Distance as a Key Factor in IT Outsourcing Engagements

Information technology outsourcing (ITO) can be defined as “the commissioning of a third party (or a number of third parties) to manage a client organization’s IT assets, people, and/or activities […] to required results” (Fitzgerald and Willcocks, 1994). It has been a pivotal topic on Chief Information Officers’ (CIO) agendas ever since Eastman Kodak’s decision to hand over their information systems function to IBM, DEC, Anderson Consulting, and Businessland in 1989. Never before had such a wellknown company that considered IT as a strategic asset handed over responsibility for it to an external partner (Applegate, 1992). The deal showed that ITO can constitute an alternative to managing complex Information Technology (IT) systems in-house (Kern and Willcocks, 2000) and subsequently led executives across different industries to follow suit and sign large contracts worth multiple hundred million dollars. The “Kodak effect” served as a starting point to what would become an important strategic matter for IT managers to consider (Caldwell, 1994). 30 years later, ITO has developed into a common practice for organizations of all sizes, industries, and geographies (Qi and Chau, 2013). Over the course of three decades, practitioners have come to appreciate ITO especially for its advantages in terms of cost, flexibility, and the possibility to capitalize on external capabilities (Martins et al., 2015; Schneider and Sunyaev, 2016). Today, virtually every Fortune 500 company2 and many large public institutions outsource a significant portion of their IT services (Patil and Wongsurawat, 2015). As a consequence, an entire global industry has evolved around ITO, with annual growth rates of around 10% and an estimated market size of around 320 billion US dollars in 2015 (Faisal and Raza, 2016). The increasing relevance of ITO in practice has also attracted considerable research that has explored various aspects of outsourcing, including common motivations, outcomes, success factors, benefits, and risks (Dibbern et al., 2004; Gonzalez et al., 2006; Lacity et al., 2009; Lacity et al., 2010; Lacity et al., 2016; Liang et al., 2015). Notwithstanding its three decades of existence, however, ITO remains a dynamic phenomenon that is subject to the ongoing rapid developments in the economic and societal environment in which it is embedded. Major developments in the field of IT, particularly the ever-progressing digitalization and the rise of IT-centered and -enabled business models (Bughin et al., 2019; Harvey Nash/KPMG, 2018; Legner et al., 2017), require adequate consideration in IT sourcing decision-making

The Impact of Equity Engagement Evaluating the Impact of Shareholder Engagement in Public Equity Investing

Over the last decade, growing numbers of investors have become increasingly concerned with the environmental and social impact of their investments across asset classes. This trend has recently been driven by new waves of "impact investors" proactively seeking measurable social and environmental impact in addition to financial returns, and by "responsible investors" making commitments to engage on environmental, social, and governance (ESG) issues through initiatives such as the United Nations-backed Principles for Responsible Investment (PRI). At the same time, engaged shareholders have had long-standing experience using "the power of the proxy" and their voices as investors to hold companies accountable for the impacts they have on employees, stakeholders, communities, and ecosystems.While investor interest in shareholder engagement has grown, our understanding of the impacts associated with engagement activities remains largely anecdotal.In 2012, an important study on Total Portfolio Activation provided a new conceptual and analytical framework for investors to pursue environmental and social impact across all asset classes commonly found in a diversified investment portfolio. Building upon the insights of Total Portfolio Activation, the Impact of Equity Engagement (IE2) initiative seeks to deepen our understanding of the nature of impact in one specific asset class—public equities— where investors' engagement activities have generated meaningful social and environmental impacts.Given the large social and environmental footprints of publicly traded corporations and the persistently high allocation to public equities in most investor portfolios, public equity investing presents a major opportunity for impact investing. Yet impact investing, as currently practiced, has concentrated primarily on smallscale direct investments in private equity and debt, where many investors perceive that social and environmental impact can be more readily observed than in publicly traded companies where ownership is intermediated, diluted, and diffused through secondary capital markets.Indeed, the nature of impact within public equity investing remains poorly understood and insufficiently documented. Because of this, many investors may be overlooking readily available opportunities for generating impact within their existing investment portfolios.To address these misperceptions and missed opportunities, the IE2 initiative is developing a more rigorous framework for documenting the impact of engagement within the public equity asset class.

Understanding task inter-dependence and co-ordination efforts in multi-sourcing: the suppliers' perspective

The last decade has witnessed a significant growth in the outsourcing of information technologies and business processes. Of a particular trend within the outsourcing industry is the shift from the client firm contracting a single supplier to utilizing multiple suppliers, which is also known as multi-sourcing. Multi-sourcing may potentially offer numerous advantages to client firms, however, it might present some challenges to suppliers. In particular, multi-sourcing could create coordination challenges, as there are inter-dependencies between the outsourced tasks to numerous suppliers. While the current outsourcing literature acknowledges the existence of inter-dependencies, little is known about the efforts required for coordinating the work between suppliers and how these coordination efforts are made to manage task inter-dependence. Three case studies at Pactera (case one) and TCS (cases two and three) serve as the empirical base to investigate the inter-dependence between outsourced tasks and suppliers coordination efforts. This research offers theoretical contributions to both coordination studies and the outsourcing body of knowledge

Towards Multi-Sourcing Maturity: A Service Integration Capability Model

When outsourcing IT services, many enterprises today resort to multi-sourcing. It allows them to reduce costs and assemble a best-of-breed service portfolio. However, this usually also increases complexity. Despite the economic importance of multi-sourcing, though, there is no systematic understanding of the capabilities required to successfully integrate interdependent services and to manage multi-sourcing. This paper develops a capability model for service integration in a grounded coding approach based on literature and expert interviews. The model identifies six key capabilities and 18 sub-capabilities. We evaluate its applicability and validity via an empirical survey and two in-depth case studies. In addition, provide various insights into the implementation of service integration functions. Our contribution should provide orientation for companies how to direct their transformation efforts. It outlines an agenda for future research and builds a solid foundation for maturity models to improve multi-sourcing readiness – ultimately leading to more effective multi-sourcing solutions

Paving the way to net-zero : identifying environmental sustainability factors for business model innovation through carbon disclosure project data

Net-zero emission targets are crucial, given the environmental impact of the food and beverage industries. Our study proposes an environmentally focused Sustainable Business Model (SBM) using data from 252 food, beverage, and tobacco companies that reported to the Carbon Disclosure Project (CDP). We investigated the risks, opportunities, business strategies, emission reduction initiatives, and supply chain interactions associated with climate change by analyzing their qualitative answers using the NVivo software. Following the grounded theory approach, we identified the Environmental Sustainability Factors (ESFs) that support businesses in meeting pollution reduction targets. The ESFs were integrated with Osterwalder’s business model canvas to create an archetype focused on delivering “net-zero” or “carbon neutral” value to customers. The model’s efficacy is enhanced by the advantages and motivations of environmental collaborations. The paper provides critical support for sustainability theories and assists Small and Medium Enterprises (SMEs) to develop strategic business models for net-zero emission targets

ACUTA Journal of Telecommunications in Higher Education

In This Issue Making Dollars and Sense Out of Cloud Computing Surfing the Wave of Cloud Computing VolP Meets the Cloud A Quick Look at Cloud Computing in Higher Education,2012 Cloud Computing: ls the Forecast Bright or Overcast? Cloud E-Mail Momentum Swells Institutional Excellence Award lndividual Awards President\u27s Message From the Executive Director Q&A with the CI

Governance Methods Used in Externalizing Information Technology

Information technology (IT) is the largest capital expenditure in many firms and is an integral part of many organizations\u27 strategies. However, the benefits that each company receives from its IT investments vary. One study by Weill (2004) found that the top performer in the sample was estimated to have as high as a 40 greater return on its IT investment than its competitors. To expedite the progress toward getting better value from IT investments, along with the need to deal with the increasing complexity and expense of IT, a growing number of companies are turning to outside service providers to develop and/or manage various aspects of their information systems. The governance methods used by firms to maintain control over the quality, services, and cost of IT outsourcing are the focus of this dissertation.Previously in the literature, researchers have looked into the phenomenon of outsourcing from various perspectives. However, existing literature has not constructed or proposed an outsourcing model that examines the important moderating impact of internal technical capabilities to governance mechanisms. Building on existing literature related to IT outsourcing, this dissertation examines governance mechanisms that were used by firms to maintain control over the quality, services, and the cost of outsourcing of IT in order to identify their contribution to the success of IT outsourcing initiatives from the perspective of managers whose companies have engaged in IT outsourcing. In this dissertation, a research model was developed, and through an on-line survey instrument, data were collected from the members of the Information Systems Community of Practice in the Project Management Institute. The findings showed that the following governance mechanisms had positive impact on managerial perceptions of IT outsourcing success: (1) Financial commitment in the form of dedicated asset-specific investments and (2) attitudinal commitment. This study also confirms the moderation effect that firm technological capab

Three IT-Business Alignment Profiles: Technical Resource, Business Enabler, and Strategic Weapon

There is a growing recognition among alignment researchers and IT professionals that one size does not fit all. In this article, we provide an important extension of alignment research that shows three profiles linking IT to different business objectives. We address the need to identify the appropriate types of IT alignment by using a multi-method study including interviews and cases. Two dimensions define the three alignment profiles: internal IT-business integration and external market engagement. The technical resource profile calls for low levels of IT-business integration and IT-market engagement. The business enabler profile deploys IT in some business processes and begins engaging IT with customers and suppliers. The strategic weapon profile uses IT to mobilize and extend the enterprise, which requires extensive IT deployment, both internally and externally. Each profile differs in strategies, criteria, capabilities, and mental models. Importantly, IT decision-makers should not adopt stage-model thinking which assumes that technical resource profiles naturally progress up the chain. Rather, successful use of IT requires specifying the requisite alignment profile as an initial design decision so that appropriate levels of resource allocation and management involvement occur