Taxonomy of Technological IT Outsourcing Risks: Support for Risk Identification and Quantification

The past decade has seen an increasing interest in IT outsourcing as it promises companies many economic benefits. In recent years, IT paradigms, such as Software-as-a-Service or Cloud Computing using third-party services, are increasingly adopted. Current studies show that IT security and data privacy are the dominant factors affecting the perceived risk of IT outsourcing. Therefore, we explicitly focus on determining the technological risks related to IT security and quality of service characteristics associated with IT outsourcing. We conducted an extensive literature review, and thoroughly document the process in order to reach high validity and reliability. 149 papers have been evaluated based on a review of the whole content and out of the finally relevant 68 papers, we extracted 757 risk items. Using a successive refinement approach, which involved reduction of similar items and iterative re-grouping, we establish a taxonomy with nine risk categories for the final 70 technological risk items. Moreover, we describe how the taxonomy can be used to support the first two phases of the IT risk management process: risk identification and quantification. Therefore, for each item, we give parameters relevant for using them in an existing mathematical risk quantification model

A decision-making approach for investigating the potential effects of near sourcing on supply chain

Purpose - Near sourcing is starting to be regarded as a valid alternative to global sourcing in order to leverage supply chain (SC) responsiveness and economic efficiency. The present work proposes a decision-making approach developed in collaboration with a leading Italian retailer that was willing to turn the global store furniture procurement process into near sourcing. Design/methodology/approach - Action research is employed. The limitations of the traditional SC organisation and purchasing process of the company are first identified. On such basis, an inventory management model is applied to run spreadsheet estimates where different purchasing and SC management strategies are adopted to determine the solution providing the lowest cost performance. Finally, a risk analysis of the selected best SC arrangement is conducted and results are discussed. Findings - Switching from East Asian suppliers to continental vendors enables a SC reengineering that increases flexibility and responsiveness to demand uncertainty which, together with decreased transportation costs, assures economic viability, thus proving the benefits of near sourcing. Research limitations/implications - The decision-making framework provides a methodological roadmap to address the comparison between near and global sourcing policies and to calculate the savings of the former against the latter. The approach could include additional organisational aspects and cost categories impacting on near sourcing and could be adapted to investigate different products, services, and business sectors. Originality/value - The work provides SC researchers and practitioners with a structured approach for understanding what drives companies to adopt near sourcing and for quantitatively assessing its advantage

Outsourcing the Business Services

The nowadays international market of outsourcing services is relatively mature and with age comes wisdom ... Thus, on a grown market, choosing to outsource services can not only be justified by the strive to reduce costs but it aims to meeting more advanced objectives as accurate alignment with business strategies of the enterprise. As a result, outsourcing has reached new forms of expression that can help the enterprises to gain competitive advantage. In the context of a grown market, a new concept appears, namely the multisourcing which it refers to the outsourcing model of the future [1] that businesses must prepare to accept and use. This concept or model of the future refers to working with several suppliers, which are competitors in a spirit of trust and teamwork, in a collaborative process to maximize the benefits associated with outsourcing process.Business Outsourcing, Audit, Economic and Financial Analysis, Information Technology Outsourcing

Developing a theoretical framework of consumer logistics from a comprehensive literature review

Paper delivered at the 21st Logistics Research Network annual conference 2016, 7th-9th September 2016, Hull. Abstract Purpose: Logistics as a business discipline entered academic consciousness in the mid-1960s when work by marketing academics discussed the integration between marketing and logistics. However, the link with consumers in the point-of-origin to point-of-consumption typology was not explored until Granzin and Bahn’s conceptualisation and model of consumer logistics (CL) in 1989. Since then few contributions have followed and neglecting this aspect of logistics research is difficult to understand. Firstly, the consumer represents a productive resource as an important downstream supply chain member carrying out logistics activities and tasks. Secondly, logistics activities directed towards the consumer also act along a marketing axis, i.e. satisfaction and loyalty for an overall shopping experience both from transaction-specific and cumulative levels are influenced by product quality elements and service-related dimensions. This paper presents a theoretical framework for deeper research into the topic of CL. Research approach: A literature review was conducted first following philosophical or field conceptualization principles as a first step towards theory building. Data bases of major logistics and SCM journals were searched however the publication timeframe was not limited as the concept of CL is relatively new. Selection criteria and Boolean searches were conducted and keywords used within article abstracts and title fields of search. Due to a relative scarcity of contributions obtained by that approach and in-line with the principle of methodological triangulation, additional search strategies were applied using Google/ Google Scholar searches. The majority of the cited contributions were also cross-referenced and included in the analysis if appropriate. Findings and originality: The literature search yielded a mother population of 46 documents of which 24 have been considered relevant for further consideration. The document harvest was analysed using Granzin and Bahn’s original CL issues and additional features in order to explore, structure, articulate, orient, hierarchize and delimit the field of CL in the 21st century. Research impact: This paper updates Granzin and Bahn’s work to outline new and distinctive features of CL given the obvious changes in the retail landscape since their work 27 years ago, such as the Internet and omni-channel retailing. More broadly, conceptualizing CL in a holistic manner enhances SCM theory building by questioning traditional notions of time and space ranges, isolated marketing-merchandizing/logistics considerations, traditional understandings of sites /locations, and equipment (e.g. shopping cart or basket)/ infrastructure/ layout and buying stages that are in-line with external evolutions on organizational, technological and societal levels. Practical impact: Understanding and improving CL contributes to supply chain competitiveness via increased consumer satisfaction and loyalty, better order fulfilment via cost reductions and efficiency increases, and enhanced differentiation targeting consumers receptive for sustainability/ ethics/ mobility/ lifestyle/ life quality issues. A dedicated approach to CL also enhances management of repercussions and interactions with upstream/ B2B logistics, visible through retail stores being both a destination and a source for inventory, the rise of drop-ship vendor relationships and new fulfilment options and related infrastructure

Technology geography: a new area of scientific inquiry

Operations management, international management, public policy and\ud economic geography are four scientific areas, which come together in the study of\ud international technology transfer. This paper shows how each of these four areas has its\ud own central issues but also have specific parts that are relevant for research on\ud international technology transfer. It is essential for companies to thoroughly understand\ud the issues of productivity of production technologies employed by them, and for\ud international companies the relationship of productivity of a specific production line and\ud the environment in which this production line operates. Simultaneously, it is essential for\ud governments to understand the productivity of its work force and therefore to understand\ud the relationship of its country characteristics and the productivity of specific industries (or\ud production technologies). A recommendation is made to add a new focus to the research\ud on international technology transfer called: Technology Geography. Its primary purpose is\ud to investigate the linkages between technology and its location, and its consequences for\ud technology transfer and international production operations

Globalisation of HR at Function Level: Exploring the Issues Through International Recruitment, Selection and Assessment Processes

Much of the debate around convergence-divergence is based around comparative analysis of HR systems. However, we need now to combine these insights with work in the field of IHRM on firm-level motivations to optimise, standardise and export HR models abroad. A series of the changes are being wrought on a range of IHRM functions – recruitment, global staffing, management development and careers, and rewards - by the process of globalisation highlighting the difference between globally standardised, optimised or localised HR processes. This paper reports on a study of firm-level developments in international recruitment, selection and assessment, drawing upon an analysis of four case studies each conducted in a different context. Organisations are building IHRM functions that are shifting from the management of expatriation towards supplementary services to the business aimed at facilitating the globalisation process, and this involves capitalising upon the fragmentation of international employees. As HR realigns itself in response to this process of within-function globalisation (building new alliances with other functions such as marketing and IS) the new activity streams that are being developed and the new roles and skills of the HR function carry important implications for the study of convergence and divergence of IHRM practice. Globalisation at firm level revolves around complexity, and this is evidenced in two ways: first, the range of theory that we have to draw upon, and the competing issues that surface depending on the level of analysis that is adopted; and second, the different picture that might emerge depending upon the level of analysis that is adopted. This paper shows that although the field of IHRM has traditionally drawn upon core theories such as the resource-based view of the firm, relational and social capital, and institutional theory, once the full range of resourcing options now open to IHRM functions are considered, it is evident that we need to incorporate both more micro theory, as well as insights from contingent fields in order to explain some of the new practices that are emerging

Outsourcing of supply chain processes: evaluating the impact of congruence between outsourcing drivers and competitive priorities on performance

The outsourcing of elements of supply chain processes is now an integral component of the operationalization of a firm s competitive business strategy. While the purported goal of outsourcing is usually to derive a competitive advantage in the marketplace, it is not clear whether the outsourcing decisions made by firms are always strategically aligned with their overall competitive strategy. To shed light on this important issue, this research study empirically examines the performance impact of the alignment (congruence) between a firm s competitive priorities (cost, flexibility, innovativeness, quality, and time) and the drivers of its outsourcing decisions. First, we develop and validate a survey instrument used to collect data for this study from manufacturing firms operating in the United States. Next, we use structural equation modeling to examine the impact of alignment between individual competitive priorities and related groups of outsourcing drivers. This analysis finds a significant positive relationship between outsourcing alignment and performance for a number of competitive priorities. Finally, we use cluster analysis to develop a taxonomy of manufacturing strategies which are tested to determine the relationship between the alignment of outsourcing decisions and performance. The taxonomic investigation identifies three unique clusters of firms based on their competitive priorities and then determines alignment between each cluster strategy and outsourcing to be significantly associated with better performance. To the best of our knowledge, there are no studies in the literature that address the issue of strategic congruence between the outsourcing drivers and competitive priorities of a firm, and the impact of such congruence on firm performance.Ph.D.Committee Chair: Soumen Ghosh; Committee Member: Jeff Stratman; Committee Member: Lawrence James; Committee Member: Ravi Subramanian; Committee Member: Vinod Singha

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

Entering China : an operations management case study

Market forces and international competition are driving companies to reduce costs. The operations management issues experienced by 50 Australian companies when investing in China were examined. Many experiences were found to be common to most of the participant\u27s industries. Relationships with government, associations, local partners and members of supply chains were considered highly important. Levels of technology in China were not considered to be a significant issue. Access to staff with sufficient technology training (particularly for product development) and technology implementation was an important issue. The paper presents a model relating the various operations management issues identified to one another.<br /