An empirical evaluation of client-vendor relationships in high maturity Indian software outsourcing companies

The study presented in this thesis investigates offshore software outsourcing relationships. Offshore software outsourcing has been increasing continuously for the last decade. More and more software vendor companies from different countries such as India, Russia, Brazil and China are joining the offshore `bandwagon'. Indian software companies especially have managed to secure a leading position as offshore software outsourcing vendors. However, with more client companies outsourcing their software operations offshore, issues associated with the establishment and management of offshore outsourcing relationships have become more important. With the growing volume of offshore outsourcing, the number of failures is also increasing. A review of the literature suggests that success or failure is mainly dependent on the management of relationships between client and vendor. Subsequently, it is imperative to identify critical factors that can help to better manage offshore software outsourcing relationships. Furthermore, it is also important to identify the difficulties faced in managing offshore relationships and also how clients and vendors develop mutual trust. Trust is important to understand in the offshore software outsourcing context as it has been reported as the most significant contributor to the management of any human relationship. Nonetheless, different advantages that motivate clients to outsource are also important in understanding offshore software outsourcing. In this study, motivators, difficulties, critical relationship management factors and trust building factors are studied by means of empirical investigation into eighteen high maturity Indian software companies and six of their clients based in the USA and Europe. Multiple case studies with grounded theory analysis techniques are used to conduct the empirical investigation. Grounded theory, which is a part of qualitative research, helps to develop emergent model from empirical data. Furthermore, multiple case studies are used as objects to collect qualitative data and organise overall investigation. The research methods used were piloted with two Indian software companies before conducting the full empirical investigation. The results of this investigation suggest that client companies are motivated to outsource their software offshore by cost savings, quality, flexibility, core competence, skills availability, higher productivity, faster development, technical expertise and high maturity of vendor. The results also uncovered difficulties faced by clients and vendors in managing relationships. Difficulties include managing cultural differences, expectation mismatch, language differences, loss of control, distance, time zone differences, workforce reshuffling and post-contractual matters. This investigation further identifies critical factors to managing offshore outsourcing relationships such as effective communication, a process driven approach, commitment to the project, transparency in actions, consistency in performance, value addition and allocating resources effectively in the project. Furthermore, results from this study suggest that previous work reference, experience and reputation in the offshore outsourcing business, background of the key vendor employees, investments, prototyping and personal visits from the client are important for achieving trust. This study also identifies that to maintain trust in the relationship both clients and vendors perceive critical factors such as commitment, process driven approach, communication, confidentiality, performance, honesty, transparency, demonstrability, personal relationships and working together in outsourcing project. Based on the results of the empirical results and their discussions, this study presents an emergent model and practical guidelines for managing offshore software outsourcing relationships. The uniqueness of this investigation is in its large scale empirical investigation into high maturity software companies. Furthermore, most previous studies have investigated either clients or vendors, whereas this study investigates vendors and their corresponding clients. An investigation into trust in offshore software outsourcing relationships is also a significant addition to the existing literature relevant to software outsourcing. The empirical investigation gave rise to proposals for discussions and to an emergent empirical model. Thus the current body of knowledge in offshore software outsourcing is enhanced by this work. Moreover, practical guidelines, based on empirical results are proposed for client and vendors to help them manage their offshore software outsourcing relationships

Selective Outsourcing in Global IT Services : Operational Level Challenges and Opportunities

Companies need to answer and react timely and efficiently to their customers’ perception in order to stay in business. Companies are finding ways to control and reduce costs. Increasingly, internal IT development and service delivery activities are outsourced to external suppliers. The most common outsourcing forms are total and selective outsourcing, which are produced in nearshore and/or offshore mode. In this dissertation, the case units are two global units in Nokia Devices: IT unit and Delivery Quality and Corrective Action Preventive Action (DQ and CAPA) unit. This dissertation consists of five publications and five research questions. The motives for the research questions originate from the case units’ real-life needs and challenges. The research approach used is qualitative. Action research was conducted during years 2009-2013. This research gives focus on the global IT service delivery, although the case company’s core-competence was to produce end-consumer products. The target was to get operational level knowledge from the case units’ outsourcing operation and practices in a Global Selective Outsourcing Environment (GSOE). This dissertation addresses the opportunities and challenges of outsourcing faced by the operational level personnel. In the GSOE, the service purchasing company’s personnel and the supplier’s personnel jointly cooperate to produce the expected outcomes and IT services. This research found that the GSOE-based operation includes multi-level customer- and supplier-ships. In order to answer the customers’ perception, the operation included quality and customer-centric practices. This research found that defining and implementing customer centricity is challenging. Unclear definitions, requirements, roles, responsibilities, and activities can negatively affect the operational level implementation. The GSOEbased operation includes also contract negotiations among the GSOE parties. Successful IT outsourcing is not built only on formal contracts. Focus is needed also on building trust, commitment, communication, and mutual cooperation and dependence. This study found that retaining operational level progress and information visibility inside the service purchasing company made it possible to hold the ownership and avoid getting into a “supplier trap.” The operational level cooperation, interaction and quality management practices affected the service purchasing company’s trust and satisfaction. The trust in the case units was found to exist among people, and this trust was formed based on an individual’s knowledge, capabilities, behavior, and performance. Quality management practices played a significant role in building trust that added to the credibility of the operation

A Conceptual Definition of Information Technology Project Management: A Campaign-Driven Perspective

Despite the importance of the project management phenomenon in information technology projects, the information technology project management (ITPM) concept lacks clarity and is narrowly defined. In this paper, we adopt a change management perspective to propose a multidimensional and configurable conceptualization of ITPM. More specifically, using a “campaign” metaphor, we identify twelve key underlying activities of ITPM, grouped under three dimensions, i.e., diplomatic, promotional, and martial, then position these activities within the organizational control theory framework

Organizational Learning From Information System-Related Incidents

Aquesta tesi analitza com les organitzacions intenten palanquejar l’experiència dels ISRI (information system-related incidents) per tal d’evitar la recurrència de fallades i reduir-ne els impactes. En conseqüència, per estudiar-ho s’adopta una perspectiva d’aprenentatge situat i una visió pràctica per tal de respondre la pregunta: “Com aprenen les organitzacions de SI dels seus principals incidents interns, relacionats amb els sistemes d’informació?” Mitjançant el disseny d’un cas múltiple i inductiu, aquest estudi arriba a la conclusió que les organitzacions adopten una gran varietat de pràctiques durant i després del procés de gestió d’un incident. Això ha portat a l’articulació de cinc formes d’aprenentatge: 1) l’aprenentatge mitjançant la gestió de l’incident, 2) la reflexió posterior a l’incident, 3) l’aprenentatge transversal, 4) l’aprenentatge externalitzat i 5) l’aprenentatge a través de la substitució material. Si bé les dues primeres formes d’aprenentatge estan documentades en altres camps, aquest estudi mostra que les característiques dels ISRI afecten les pràctiques relacionades amb aquestes dues formes d’aprenentatge. A més, l’anàlisi se centra també en les altres tres formes, que semblen típiques d’aquest sector. L’aprenentatge transversal fa referència al fet que mentre algunes pràctiques d’aprenentatge se centren en incidents individuals, hi ha unes pràctiques específiques d’aprenentatge que tenen en compte molts esdeveniments adversos. L’aprenentatge externalitzat indica que l’experiència que s’obté d’un incident sovint es capitalitza confiant en proveïdors especialitzats a gestionar incidents. Finalment, la naturalesa particular dels processos de treball de la SI i la seva base material permeten aprendre a través de la substitució material. Aquesta tesi enriqueix la nostra comprensió dels processos pels quals les organitzacions aprenen dels ISRI i, per tant, contribueix als desenvolupaments teòrics de la literatura sobre el coneixement i l’aprenentatge. Més concretament, els resultats d’aquesta recerca qüestionen la visió temporal establerta sobre quan es produeix un procés d’aprenentatge. Si bé la literatura existent en matèria d’aprenentatge organitzacional assenyala que l’aprenentatge té lloc durant l’incident (a través de pràctiques de gestió de l’incident) o (immediatament) després (a través de la reflexió i l’aprenentatge posteriors a l’incident), aquest estudi suggereix que el model temporal del procés d’aprenentatge no s’exhaureix necessàriament en aquesta dicotomia. El concepte d’aprenentatge transversal indica la importància d’observar les pràctiques d’aprenentatge que tenen lloc paral•lelament i a una distància temporal considerable dels incidents que es produeixen en un moment adequat d’aprenentatge. La tesi se suma a la literatura sobre el coneixement destacant la importància dels règims de materialitat subjacents en el procés d’aprenentatge. La idea de l’aprenentatge a través de la substitució material mostra que el règim modular i adaptable de la materialitat que domina en els ISRI pot portar les organitzacions a beneficiar-se de la seva experiència en incidents, sense conèixer-ne necessàriament les causes i les seves possibles solucions. Finalment, la tesi ens ajuda a comprendre millor el rol de la política i la governança de l’aprenentatge a partir dels incidents en el sector de la SI. I ho fa en subratllar els rols de neutralització (enfront de normalització) i de dramatització (enfront de racionalització) en el procés d’aprenentatge. Aquest estudi ha descobert que la ignorància dels actors influents en els aspectes tècnics del problema pot aprofitar-se per part dels agents d’aprenentatge per tal de sumar-se a la pressió política necessària per impulsar les iniciatives d’aprenentatge. L’estudi també destaca la importància crítica de la governança organitzacional per al procés d’aprenentatge. El concepte d’aprenentatge externalitzat subratlla la importància del sistema de governança de l’aprenentatge, que complementa les dues governances d’aprenentatge dominants en la literatura –és a dir, l’aprenentatge intraorganitzatiu i l’interorganitzatiu. Això demostra que, per treure profit de les experiències d’incidents passats, les organitzacions poden evitar fer pràctiques d’aprenentatge, especialment quan tracten amb una gran varietat de tecnologies canviants (abstinència d’aprenentatge), perquè el coneixement que se n’obtingui probablement serà obsolet o perdrà valor amb el temps.Esta tesis analiza cómo las organizaciones intentan apalancar la experiencia de los ISRI (information system-related incidents) para evitar la recurrencia de fallos y reducir sus impactos. En consecuencia, para su estudio se adopta una perspectiva de aprendizaje situado y una visión práctica para dar respuesta a la pregunta: “¿Cómo aprenden las organizaciones de SI de sus principales incidentes internos, relacionados con los sistemas de información?” Mediante un diseño de un caso múltiple e inductivo, este estudio llega a la conclusión que las organizaciones adoptan una gran variedad de prácticas durante y después del proceso de gestión de un incidente. Esto ha llevado a la articulación de cinco modos de aprendizaje: 1) aprendizaje mediante la gestión del incidente, 2) reflexión posterior al incidente, 3) aprendizaje transversal, 4) aprendizaje externalizado y 5) aprendizaje a través de la sustitución material. Si bien los dos primeros modos de aprendizaje están documentados en otros campos, el presente estudio muestra que las características de los ISRI afectan las prácticas relacionadas con estos dos modos de aprendizaje. Además, el análisis se centra también en los otros tres modos, que parecen típicos de este sector. El aprendizaje transversal se refiere al hecho de que mientras algunas prácticas de aprendizaje se centran en incidentes individuales, existen prácticas específicas de aprendizaje que tienen en cuenta múltiples eventos adversos. El aprendizaje externalizado indica que la experiencia que se obtiene de un incidente con frecuencia se capitaliza confiando en proveedores especializados en gestionar incidentes. Finalmente, la naturaleza particular de los procesos de trabajo de la SI y su base material permiten aprender a través de la sustitución material. Esta tesis enriquece nuestra comprensión de los procesos por los cuales las organizaciones aprenden de los ISRI y, por tanto, contribuye a los desarrollos teóricos de la literatura sobre el conocimiento y el aprendizaje. Más específicamente, los resultados de esta investigación cuestionan la visión temporal establecida sobre cuándo se produce un proceso de aprendizaje. Si bien la literatura existente en materia de aprendizaje organizacional señala que el aprendizaje tiene lugar durante el incidente (a través de prácticas de gestión del incidente) o (inmediatamente) después (a través de la reflexión y el aprendizaje posteriores al incidente), el presente estudio sugiere que el modelo temporal del proceso de aprendizaje no se restringe necesariamente a esta dicotomía. El concepto de aprendizaje transversal indica la importancia de observar las prácticas de aprendizaje que tienen lugar paralelamente y a una distancia temporal considerable de los incidentes que se producen en un momento adecuado de aprendizaje. La tesis se suma a la literatura sobre el conocimiento destacando la importancia de los regímenes de materialidad subyacentes en el proceso de aprendizaje. La idea del aprendizaje a través de la sustitución material muestra que el régimen modular y adaptable de la materialidad que domina en los ISRI puede llevar a las organizaciones a beneficiarse de su experiencia en incidentes, sin conocer necesariamente las causas de dichos incidentes y sus posibles soluciones. Finalmente, la tesis mejora nuestra comprensión del rol de la política y la gobernanza del aprendizaje a partir de los incidentes en el sector de la SI. Al efecto, subraya los roles de neutralización (frente a normalización) y dramatización (frente a racionalización) en el proceso de aprendizaje. Este estudio ha descubierto que la ignorancia de los actores influyentes en los aspectos técnicos del problema puede ser aprovechado por los agentes de aprendizaje para sumarse a la presión política necesaria para impulsar las iniciativas de aprendizaje. El estudio también destaca la importancia crítica de la gobernanza organizacional para el proceso de aprendizaje. El concepto de aprendizaje externalizado subraya la importancia del sistema de gobernanza del aprendizaje, que complementa las dos gobernanzas de aprendizaje dominantes en la literatura –es decir, el aprendizaje intraorganizativo y el interorganizativo. Ello demuestra que, para sacar provecho de las experiencias de incidentes pasados, las organizaciones pueden evitar realizar prácticas de aprendizaje, especialmente cuando tratan con una gran variedad de tecnologías cambiantes (abstinencia de aprendizaje), puesto que el conocimiento que se obtiene probablemente será obsoleto o perderá valor con el tiempo.This thesis examines how organizations try to leverage the experience of major information system-related incident (ISRI) to avoid the recurrence of failure and to reduce their impacts. Accordingly, the study utilizes a situated learning perspective and a practice view to respond to the question “how do IS organizations learn from their internal, large Information system-related incidents?” Employing a multiple, inductive case study design, the study found that organizations adopt a wide range of practices during and after the incident handling process. This resulted in articulating five learning modes: 1) learning through incident handling, 2) post-incident reflection, 3) transversal learning, 4) outsourced learning, and 5) learning through material replacement. Although the first two learning modes are documented in other domains, the study shows how the characteristics of ISRIs affect the practices associated to these two learning modes. Further, the analysis focuses on the other three learning modes that seem to be typical of this sector. Transversal learning refers to the fact that while some of the learning practices are focused on individual incidents, specific learning practices exist which take into account multiple adverse events. Outsourced learning indicates that capitalizing on the experience of an incident is often carried out through relying on specialized providers that handle incidents. Finally, the particular nature of the IS work processes and its material basis allow for learning through material replacement. The thesis enriches our understanding of the processes whereby organizations learn from ISRIs, thus providing contributions to theoretical developments in knowledge and learning literature. More specifically, the results of the research challenge the established temporal view about when learning process takes place. While the existing literature on organizational learning suggests that learning takes place either during incident (through incident handling practices) or (right) after (through post-incident reflection and learning), the current study suggests that the temporal pattern of learning process is not necessarily confined to this established dichotomy. The concept of transversal learning indicates the importance of looking at learning practices that take place in parallel and with a considerable temporal distance from incidents that occur in a proper moment of learning. The thesis adds to knowledge literature by foregrounding the importance of the materiality regimes underlying the learning process. The idea of learning through material replacement shows that the modular, adaptable regime of materiality that dominates ISRIs can lead organizations to benefit from their incident experience, without necessarily knowing the causes of incidents and their potential solutions. Finally, the thesis advances our understanding of the role of politics and governance of learning from incidents in the IS sector. It does so by highlighting the role of neutralization (versus normalization) and dramatization (versus rationalization) in the process of learning. The study found that the ignorance of influential actors about the technical aspects of the problem could be leveraged by learning agents to add to the political pressure needed to drive learning initiatives. The study also highlights the critical importance of organizational governance for the process of learning. The concept of outsourced learning underscores the importance of a learning governance system, which complements the two dominant learning governances in the literature –i.e., intra and inter-organizational learning. This shows that for capitalizing on the experiences of past incidents, organizations might avoid performing learning practices, especially when they are dealing with a wide range of changing technologies (learning abstinence), since the knowledge gained is expected to be obsolete or decrease in value through time

Offshore Business Processing Outsourcing by Australian Enterprises to Service Providers Located in India

The primary research question for this PhD was: “What are the key factors that contribute to the success of offshore business process outsourcing (OBPO) by Australian and international organisations to service providers located in India and the Philippines?” A qualitative research design in the positivist paradigm was adopted, involving longitudinal case studies of five client companies. A primary contribution was identification of critical success factors for management of OBPO at the individual company level

Rise and Fall of an Information Technology Outsourcing Program: A Qualitative Analysis of a Troubled Corporate Initiative

Information technology outsourcing (ITO) is a common business practice and a widely studied topic in academic literature. However, far less attention is paid to the implications and social dynamics of executives’ pursuit of personal career achievement through the implementation of ITO programs. Focused mainly on gaining organizational power for career advancement and accomplishment, executives can create unintended consequences for their employees, their suppliers, their company, their shareholders, and their own careers. This research focused on a large information technology outsourcing program from its inception to early implementation at a single Fortune 1000 firm. The time span covered was just over five years, which included the two years prior and more than three years of the initiative’s lifespan. The data for this study included fifty-two interviews conducted with employees and executives over eighteen months as well as my personal observations and field notes. The uniqueness of this study compared to other published research stems from my dual role as both researcher and executive at the firm throughout this work. The data informed a grounded theory of how and why the ITO initiative unfolded as it did, while giving equal voice to the employees and executives involved. The central theoretical premises of this analysis relied on Pierre Bourdieu’s concepts of habitus, capital, and fields in conjunction with Bruce Lincoln’s taxonomies and anomalies within social structures. The study’s analysis was further informed by Brown and Duguid’s infocentrism, Erving Goffman’s dramaturgy, impression management, and moral career, along with Thomas Kuhn’s paradigms within the structure of scientific revolutions, Jackall’s bureaucratic ethic and Harvey’s Abilene Paradox. Analysis of the data identified the organization’s habitus as a collection of visible and shadow social practices, mental models, and organizational rules for accumulating power. The habitus shaped employees’ and executives’ behaviors toward each other and toward their ITO provider. As this study ended, the ITO initiative was in its fourth year, significantly delayed, and its chances of success doubtful