A New Conceptual and Operational Framework for the Switching of IT Outsourcing Providers

The switching of information technology (IT) providers is a subject of considerable significance, since the IT outsourcing (ITO) market is still growing and ITO deals are regularly reaching the end of their contract period, whilst other ITO contracts are prematurely discontinued. The transitional phase to a new provider is a highly complex, resource intensive and critical phase of strategic importance. The objective of this phase is that the contract with the new provider is implemented and the incumbent provider is replaced. Existing literature suggests that an unsuccessful transition can endanger the business continuity of the ITO client. Yet, to date, no research has holistically focused on how successful ITO transitions can be performed. This research seeks to contribute to the understanding and knowledge of which factors support the successful transition of ITO providers for the switching client. It does so by identifying critical success factors, secondary success factors, key risks, and then develops a conceptual framework and a practical operational guide. This qualitative research is conducted within a constructivist paradigm. Twenty-one practitioners from seven different organisations were interviewed. The interviewed practitioners represent three different groups - IT outsourcing client (8), incumbent provider (6) and new provider (7). The focus is on complex ITO deals, where ‘complex’ is considered to comprise large ITO deals with total contract value of more than €100 million, and where at least two IT services have been outsourced and need to be switched. All interviews were transcribed and the data analysis was conducted based on a modified grounded theory approach and the NVivo software tool facilitated the coding process. The results of the analysis and the development of the conceptual and operational framework were subject to validation procedures and verification strategies, such as member checking. The thesis provides a comprehensive critical review of the literature on switching ITO providers and related relevant literature on IT outsourcing to act as the basis of this research. This is refined and augmented through the empirical work to present a final holistic framework that details the success factors and risks involved. This framework provides a holistic view of the management capabilities and business activities that are necessary to ensure a successful switching of ITO providers. For each management capability or business activity a RACI table is provided, which outlines key tasks and responsibilities. Collectively, the new conceptual framework and associated analysis and materials will provide a significant contribution to both literature and practice in the ITO field

Outsourcing of logistics : a survey of the practices of medium and large kenyan manufacturing firms

A research project in partial fulfillment of the requirements for the degree Master of Business and Administration (MBA), Faculty of Commerce, University of NairobiThe tough economic times in the country have endeared firms to reconsider their options in order to acquire and sustain competitive advantage. To ensure this, they have adopted a number of strategies. There has been a move to strategically manage the operations of the business unit that demands the evaluation of core activities and Competencies as to stay in what the firm-does best or what is the 'raison d'etre' of the firm. However the other activities found to be either non-core or that the firm does not do well still have-to be done. This has led to the outsourcing of these activities to other firms in the industry that could do these activities better and contribute positively in the value addition function of the organisation. Logistics has been identified as one of the functions that are very frequently outsourced by firms. Indeed the study found that about 80% o fthe firms surveyed outsourced at least one activity in the logistics function.The study found that both medium and large sized firms equally outsource logistics services and the ownership of the firm does not have a significant influence on the prevalence of outsourcing of logistics services in Kenyan firms, Firms quoted three reasons as being most influential in outsourcing of the logistical activities. The first one is the need to avail time for other crucial activities for managers. The second is the need to reduce overall cost and the third, the need to make use of the expertise of service providers. The triggers found to lead to outsourcing were the need to improve overall efficiency, need to focus on the core business and the demand from customers for a higher service level. The study found that staff resistance to change was the factor that was an obstacle to the implementation of outsourcing of logistical services. The surveyed firms did not identify any serious pitfalls in the outsourcing of logistical services in Kenya.The evidence for a partnership relationship is not very strong; hence, Kenyan firms need to strengthen their relationship with suppliers for optimal realisation of benefits and value addition for customers. The area of e-logistics is not well developed in Kenya hence investment in the sector could boost trading and enhance operational effectiveness.Outsourcing of logistics if carried out properly is a very important practice for firms in Kenya that may want to maintain competitive advantage in the industry.The tough economic times in the country have endeared firms to reconsider their options in order to acquire and sustain competitive advantage. To ensure this, they have adopted a number of strategies. There has been a move to strategically manage the operations of the business unit that demands the evaluation of core activities and Competencies as to stay in what the firm-does best or what is the 'raison d'etre' of the firm. However the other activities found to be either non-core or that the firm does not do well still have-to be done. This has led to the outsourcing of these activities to other firms in the industry that could do these activities better and contribute positively in the value addition function of the organisation. Logistics has been identified as one of the functions that are very frequently outsourced by firms. Indeed the study found that about 80% o fthe firms surveyed outsourced at least one activity in the logistics function.The study found that both medium and large sized firms equally outsource logistics services and the ownership of the firm does not have a significant influence on the prevalence of outsourcing of logistics services in Kenyan firms, Firms quoted three reasons as being most influential in outsourcing of the logistical activities. The first one is the need to avail time for other crucial activities for managers. The second is the need to reduce overall cost and the third, the need to make use of the expertise of service providers. The triggers found to lead to outsourcing were the need to improve overall efficiency, need to focus on the core business and the demand from customers for a higher service level. The study found that staff resistance to change was the factor that was an obstacle to the implementation of outsourcing of logistical services. The surveyed firms did not identify any serious pitfalls in the outsourcing of logistical services in Kenya.The evidence for a partnership relationship is not very strong; hence, Kenyan firms need to strengthen their relationship with suppliers for optimal realisation of benefits and value addition for customers. The area of e-logistics is not well developed in Kenya hence investment in the sector could boost trading and enhance operational effectiveness.Outsourcing of logistics if carried out properly is a very important practice for firms in Kenya that may want to maintain competitive advantage in the industry

Prioritizing Offshore Vendor Selection Criteria for the North American Geospatial Industry

The U.S. market for geospatial services totaled US $2.2 billion in 2010, representing 50% of the global market. Data-processing firms subcontract labor-intensive portions of data services to offshore providers in South and East Asia and Eastern Europe. In general, half of all offshore contracts fail within the first 5 years because one or more parties consider the relationship unsuccessful. Despite the high failure rates, no study has examined the offshore vendor selection process in the geospatial industry. The purpose of this study was to determine the list of key offshore vendor selection criteria and the efficacy of the analytic hierarchy process (AHP) for ranking the criteria that North American geospatial companies consider in the offshore vendor selection process. After the selection of the initial list of factors from the literature and their validation in a pilot study, a final survey instrument was developed and administered to 15 subject matter experts (SMEs) in North America. The SMEs expressed their preferences for one criterion over another by pairwise comparisons, which served as input to the AHP procedure. The results showed that the quality of deliverables was the top ranked (out of 26) factors, instead of the price, which ranked third. Similarly, SMEs considered social and environmental consciousness on the vendor side as irrelevant. More importantly, the findings indicated that the structured AHP process provides a useful and effective methodology whose application may considerably improve the quality of the overall vendor selection process. Last, improved and stabilized business relationships leading to predictable budgets might catalyze social change, supporting stable employment. Consumers could benefit from derivative improvements in product quality and pricing

An analysis of physical distribution service quality in the online retail market

Abstract unavailable please refer to PD

A study of organisational response to the management of operational property assets and facilities support services as a business resource - real estate asset management. Vol. 1-2

The research was driven by three objectives: • to clarify the nature and strength of the link between strategic business planning and the contributory role of the corporate real estate assets; • to model the management processes that are necessary for a proactive approach to real estate provision and their ongoing management as operational facilities; and • to develop an integrated management development model for real estate asset management that is built on continuous improvement. The underlying aim of the study is to develop models and frameworks that justify and provide for the competencies necessary for the continuous alignmof the operational real estate assets to changing business requirements. The above research objectives were operationalised by investigating three related organisational variables - structure, processes and competencies. The main findings reflect a situation in which organisations are looking to optimise on all its business resources. The dynamics of the market place and the pace of technological development are forcing many organisations to look at their operational assets more closely. The evidence from the case studies organisations supports the following: Structure - It is not so much the positioning in terms of closeness to corporate management, but the level of influence that real estate/facilities executives have on the corporate decision making processes that relate to operational facilities issues. Processes - A proactive management approach must provide for procedures that incorporate the strategic business intentions in facilities dimensions and be in a position to provide solutions to business needs. Competencies - It is incumbent upon the real estate/facilities department to understand the nature of the business they are supporting and develop competencies that support the corporate strategic intent. The research proposes an integrated resource planning framework that incorporates the requirements of three principal business resources; people, technology and property. The proposed framework regards Real Estate Asset Management, REAM, as an integrative planning and management process that considers the outcome in operational facilities provision as matching the requirements of people, technology and property; to consciously create the desired workplace environment as defined by real estate variables (via the strategic facilities brief) and facilities services variables (via the service levels brief). The proposed framework was validated against a panel of experts practising in the field of real estate and facilities management. The contribution in knowledge in the field may be viewed in terms of a critical examination of the role of operational facilities as a business resource and the implications this has on the practice of real estate asset management in an organisational setting

Developing the Service Sector as an Engine of Growth for Asia

[Excerpt] This book takes an in-depth look at the barriers that stand in the way of service sector development in Asia to systematically assess the prospects for the sector to be an engine of growth. It covers a number of themes that are relevant for the sector throughout the region including trade, foreign direct investment, the relationship between services and growth, and the emerging information technology–business process outsourcing industry. It also includes studies on the service sectors of five major Asian economies: the People’s Republic of China, India, the Republic of Korea, the Philippines, and Thailand. The book is the key output of an ADB regional technical assistance research project financed by the e-Asia and Knowledge Partnership Fund established by the Republic of Korea at the Asian Development Bank. The project benefited from in-depth collaboration with the Peterson Institute for International Economics, one of the world’s top think tanks

Managing the “Fuzzy front end” of open digital service innovation in the public sector: A methodology

There are many obstacles to effective open innovation in the public sector context, especially at the “fuzzy front end” (FFE), where the need or opportunity is known but serious resources have not yet been committed to possible solutions. In this paper, we report on a theoretically inspired and practically tested methodology for FFE public sector digital innovation. The methodology was purpose-built for the context and has been progressively refined using reflection-on-practice, but broadly consists of a hybrid of private sector open innovation practices, and agile software development processes. We outline the background, context, principles, stages and artefacts. Then we evaluate the method in terms of barriers and opportunities to FFE public sector innovation. We note that establishing the necessary context: a nurturing environment; cross-agency commitments in cash and in kind; and boundary spanning appointments, is as important to success as is the detailed execution of the method

Cost and Performance Optimisation in the Technological Phase of Parcel Delivery – A Literature Review

The present review paper provides a systematic insight into the studies published so far when it comes to the research on the cost and performance optimisation in the parcel delivery phase. Globalisation, as well as the new trends, such as selling online, directly influences the demands for the delivery of goods. Demand for the delivery of goods proportionally affects the transport prices. A great majority of deliveries is carried out in densely populated urban areas. In terms of costs, the greatest part in the courier organisations costs is observed in the technological phase of parcel delivery, which is at the same time the least efficient. For that reason, significant improvement of performance and cost optimisation in the very delivery phase is a rather challenging field for the researchers. New algorithm-based technologies, innovations in the logistics and outsourcing of individual technological phases are ways by means of which one strives to enhance the delivery efficiency, to improve performance and quality, but also - to optimise the costs in the last phase of delivery. The aim of the present paper is to offer a systematic review into the most recent research in the field of technology, innovations and outsourcing models with the aim of reducing the cost and enhancing the productivity and quality in parcel delivery