Risk Management in the Arctic Offshore: Wicked Problems Require New Paradigms

Recent project-management literature and high-profile disasters—the financial crisis, the BP Deepwater Horizon oil spill, and the Fukushima nuclear accident—illustrate the flaws of traditional risk models for complex projects. This research examines how various groups with interests in the Arctic offshore define risks. The findings link the wicked problem framework and the emerging paradigm of Project Management of the Second Order (PM-2). Wicked problems are problems that are unstructured, complex, irregular, interactive, adaptive, and novel. The authors synthesize literature on the topic to offer strategies for navigating wicked problems, provide new variables to deconstruct traditional risk models, and integrate objective and subjective schools of risk analysis

Bringing Global Sourcing into the Classroom: Experiential Learning via Software Development Project

Global sourcing of software development has imposed new skill requirements on Information Technology (IT) personnel. In the U.S., this has resulted in a paradigm shift from technical to softer skills such as communications and virtual team management. Higher education institutions must, consequently, initiate innovative curriculum transformations to better prepare students for these emerging workforce needs. This paper describes one such venture between Marquette University (MU), U.S.A. and Management Development Institute (MDI), India, wherein IT students at MU collaborated with Management Information Systems (MIS) students at MDI on an offshore software development project. The class environment replicated an offshore client/vendor relationship in a fully virtual setting while integrating communications and virtual team management with traditional IT project management principles. Course measures indicated that students benefited from this project, gained first-hand experience in the process of software offshoring, and learned skills critical for conduct of global business. For faculty considering such initiatives, we describe the design and administration of this class over two semesters, lessons learned from our engagement, and factors critical to success of such initiatives and those detrimental to their sustenance

Control, Process Facilitation, and Requirements Change in Offshore Requirements Analysis: The Provider Perspective

Process, technology, and project factors have been increasingly driving organizations to offshore early software development phases, such as requirements analysis. This emerging trend necessitates greater control and process facilitation between client and vendor sites. The effectiveness of control and facilitation has, however, not been examined within the context of requirements analysis and change. In this study, we examine the role of control and facilitation in managing changing requirements and on success of requirements gathering in the Indian offshore software development environment. Firms found that control by client-site coordinators had a positive impact on requirements analysis success while vender site-coordinators did not have similar influence. Process facilitation by client site-coordinators affected requirements phase success indirectly through control. The study concludes with recommendations for research and practice

Risk Profiles in Individual Software Development and Packaged Software Implementation Projects: A Delphi Study at a German-Based Financial Services Company

The aim of this paper is to compare risk profiles of individual software development (ISD) and packaged software implementation (PSI) projects. While researchers have investigated risks in either PSI projects or ISD projects, an integrated perspective on how the risk profiles of these two types of information system (IS) projects differ is missing. To explore these differences, this work conducted a Delphi study at a German-based financial services company. The results suggest that: First, ISD projects seem to be more heterogeneous and face a larger variety of risks than the more straightforward PSI projects. Second, ISD projects seem to be particularly prone to risks related to sponsorship, requirements, and project organization. Third, PSI projects tend to be predominantly subject to risks related to technology, project planning, and project completion. Finally, in contrast to available lists of risks in IS projects and irrespective of the project type, the paper found a surprisingly high prominence of technology and testing-related risks

Bringing Global Sourcing into The Classroom: Experiential Learning Via a Global Software Development Project

The growing trend in offshore software development has imposed new skills requirements on collaborating global partners. In the U.S. this has translated into skill sets that include communications, project management, business analysis, and team management. In a virtual setting, these skills take on a complex proportion. This paper describes an educational initiative in offshore software development between undergraduate students enrolled in a project management course at Marquette University, USA and graduate business students enrolled in an Information Systems Analysis and Design course at Management Development Institute, India. The course replicated an offshore client/vendor relationship in a virtual setting. For faculty considering such initiatives, this paper describes the setting and factors critical to success of this initiative and cautions against others that can be detrimental to such an effort

Governance of Offshore IT Outsourcing at Shell Global Functions IT-BAM Development and Application of a Governance Framework to Improve Outsourcing Relationships

The lack of effective IT governance is widely recognized as a key inhibitor to successful global IT outsourcing relationships. In this study we present the development and application of a governance framework to improve outsourcing relationships. The approach used to developing an IT governance framework includes a meta model and a customization process to fit the framework to the target organization. The IT governance framework consists of four different elements (1) organisational structures, (2) joint processes between in- and outsourcer, (3) responsibilities that link roles to processes and (4) a diverse set of control indicators to measure the success of the relationship. The IT governance framework is put in practice in Shell GFIT BAM, a part of Shell that concluded to have a lack of management control over at least one of their outsourcing relationships. In a workshop the governance framework was used to perform a gap analysis between the current and desired governance. Several gaps were identified in the way roles and responsibilities are assigned and joint processes are set-up. Moreover, this workshop also showed the usefulness and usability of the IT governance framework in structuring, providing input and managing stakeholders in the discussions around IT governance

Distributed software development in a financial services organisation

The outsourcing of IS functionality to offshore development firms has been a growth industry that has blossomed over the last 10 years. This is as a result of organisations, seeking to optimise costs, mitigate risks, and achieve greater return on shareholder value by delegating the delivery of business information systems and applications to third party vendors. At the same time, distributed approaches to software development has arisen, there has been a growing interest in the applicability of lightweight or Agile development methodologies. As such, this paper this paper discusses experiences of a European Financial Services firm in outsourcing, and subsequently offshoring, two of its IT projects to vendor firms in India, where Agile approaches were used. The authors provide a model of the financial firm’s critical success factors presented as a frame of reference for others interested and involved in this topical area

Offshore outsourcing - A global shift in the present IT industry

The paper analyses the offshore outsourcing of IT services (OOIT), which have become increasingly important for the global IT industry. Through this rapid process of firm relocation, a new terminology has emerged, which forms the starting point for our paper. We compare wage cost differentials of IT workers in key offshore locations like India to those in the US and Europe, incorporating the hidden costs of offshoring - including long-term risks and opportunities - in order to determine the total cost of offshore outsourcing activities. The debate on the potential future negative employment impacts in the major OECD countries recently became a point of political contention in the US presidential election campaign, reflecting widespread fears in the US and elsewhere that outsourcing will lead to decreased income and job loss. In Europe, policy makers are searching for instruments to guide these developments so that major social disruptions do not lead to disproportionately negative welfare impacts in the short term. The future costs and benefits of outsourcing can currently be assessed only in broad terms due to the lack of adequate data and representative statistics. However, the theory of comparative advantages suggests that overall, offshoring and inshoring countries will gain from the new international division of labour in the long run. --offshore outsourcing of IT,international factor movements and labour markets,international business,multinational firms

Information systems offshore outsourcing: a descriptive analysis

Purpose - The present paper has as its aim to deepen in the study of Information Systems Offshore Outsourcing, proposing three essential steps to make this decision: weighing up the advantages and risks of Offshore Outsourcing; analysing the taxonomy of this phenomenon; and determining its current geography. Design/Methodology/Approach - With that objective in mind, it was decided to base the research work on the literature about this topic and the review of reports and statistics coming from different sources (consultants, the press, public institutions, etc.). Findings - Offshore Outsourcing has grown vertiginously in recent years. Its advantages exceed even those of onshore outsourcing, though it also involves greater risks derived from the (cultural and physical) distance existing between customer and provider. Various types of services and customer-provider relationships hide under the umbrella of Offshore Outsourcing; i.e. it is not a homogeneous phenomenon. The main Offshore Outsourcing customers can be found in the USA and Europe, mainly in the UK but also in other countries such as Germany and France. As for provider firms, most of them are located in Asia −outstandingly in India but also in China and Russia. At present, there are important providers scattered in other continents as well. Originality/Value - The conclusions suggest that the range of potential Offshore Outsourcing destinations must be widened and that the search for a provider cannot be based exclusively on cost savings; other considerations such as quality, security and proximity of the provider must also be taken into consideration. That is precisely the reason why the study of new countries like Spain as Offshore Outsourcing destinations is proposed

A framework and tool to manage Cloud Computing service quality

Cloud Computing has generated considerable interest in both companies specialized in Information and Communication Technology and business context in general. The Sourcing Capability Maturity Model for service (e-SCM) is a capability model for offshore outsourcing services between clients and providers that offers appropriate strategies to enhance Cloud Computing implementation. It intends to achieve the required quality of service and develop an effective working relationship between clients and providers. Moreover, quality evaluation framework is a framework to control the quality of any product and/or process. It offers a tool support that can generate software artifacts to manage any type of product and service efficiently and effectively. Thus, the aim of this paper was to make this framework and tool support available to manage Cloud Computing service quality between clients and providers by means of e-SCM.Ministerio de Ciencia e Innovación TIN2013-46928-C3-3-RJunta de Andalucía TIC-578