Information Systems Skills Differences between High-Wage and Low-Wage Regions: Implications for Global Sourcing

Developing Information Systems (IS) skills for a company’s workforce has always been challenging, but global sourcing growth has caused the determination of needed IS skills to be more complex. The increased use of outsourcing to an IS service provider and from high-wage regions to low-wage regions has affected what IS skills are required globally and how to distribute the workforce to meet these needs. To understand what skills are needed in locations that seek and those that provide outsourcing, we surveyed IS service provider managers in global locations. Results from 126 reporting units provide empirical evidence that provider units in low-wage regions value technical skills more than those in high-wage regions. Despite the emphasis on commodity skills in low-wage areas, high- and low-wage providers value project management skills. Low-wage regions note global and virtual teamwork more than high-wage regions do. The mix of skills and the variation by region have implications for domestic and offshore sourcing. Service providers can vary their staffing models in global regions which has consequences for recruiting, corporate training, and curriculum

Everywhere and nowhere: Nearshore software development in the context of globalisation

Offshore software outsourcing, a major contributor to globally distributed work (GDW), has been identified as one of the most striking manifestations of contemporary globalisation. In particular, offshoring resonates with influential views that suggest that ICTs have rendered location irrelevant. Some research, however, has questioned this “placeless logic” and suggested that location may be significant to the success of offshoring ventures. In this paper, we draw on evidence from two nearshore software development ventures in the Caribbean to identify a number of locational characteristics relating to the physical, economic and cultural setting, local resources and government policy that may be important in influencing the suitability of offshore outsourcing venues. Some of these are recognised, even by companies pursuing placeless location strategies, while others were unanticipated. The cases also suggest that companies may be able to actively shape certain characteristics to their advantage. Implications for vendors and clients of nearshore information services, and potentially also for companies considering offshore ventures in non-traditional locations, are identified

Job Creation Through Building the Field of Impact Sourcing

Provides an overview of the field of impact sourcing - using business process outsourcing to create sustainable jobs for the lowest-income populations. Offers case studies, examines models, outlines challenges, and presents an action agenda

How Many U.S. Jobs Might Be Offshorable?

Using detailed information on the nature of work done in over 800 BLS occupational codes, this paper ranks those occupations according to how easy/hard it is to offshore the work— either physically or electronically. Using that ranking, I estimate that somewhere between 22% and 29% of all U.S. jobs are or will be potentially offshorable within a decade or two. (I make no estimate of how many jobs will actually be offshored.) Since my rankings are subjective, two alternatives are presented—one is entirely objective, the other is an independent subjective ranking. It is found that there is little or no correlation between an occupation’s “offshorability” and the skill level of its workers (as measured either by educational attainment or wages). However, it appears that, controlling for education, the most highly offshorable occupations were already paying significantly lower wages in 2004.

Industrial clusters and economic integration : theoretic concepts and an application to the European Metropolitan Region Nuremberg

"Economic integration typically goes along with disintegration of production through outsourcing and offshoring (Feenstra 1998). As horizontal and vertical links between firms become more and more pronounced, value chains within regions are increasingly organized by production and innovation clusters. On the basis of a literature overview, we argue that in a world of economic integration clusters can be expected to play a prominent role. Therefore clusters can also be seen as a key element in the European Metropolitan Region concept. Within such an economic space, localisation economies according to the 'Marshallian trinity' (knowledge spillovers, input sharing and labour market pooling (Rosenthal/Strange 2003)) can be realized. The paper builds on a comprehensive company survey for the core of the European Metropolitan Region Nuremberg that includes customer-supplier relationships and various forms of cooperation. As indicated by numerous empirical studies, the characteristics of clusters differ substantially. In order to overcome the fuzziness of the concept we suggest a bottom-up methodology of cluster identification using a set of qualitative and quantitative indicators. Given that many kinds of barriers to interregional and international trade are becoming less and less important and transport cost are falling, modern production clusters tend to have a higher geographical extension than traditional ones. We therefore raise the question of whether clustering is relevant for economic integration on the regional, national and supra-national level." (Author's abstract, IAB-Doku) ((en))Stadtregion, regionales Cluster, Standort, Industrieregion, Regionalökonomie, zwischenbetriebliche Kooperation, Zulieferer, Wirtschaftsstruktur, regionales Netzwerk, Nürnberg, Oberfranken, Mittelfranken, Franken, Bayern

Managing Risk Areas in Software Development Offshoring: A CMMI Level 5 Case

Software companies are increasingly offshoring development to countries with high expertise at lower cost. Offshoring involves particular risk areas that, if ignored, increase the likelihood of failure. However, the offshoring client’s maturity level may influence the management of these risk areas. Against this backdrop, we present an interpretive case study on how managers perceive and mitigate the risk areas in software development offshoring with a mature capability maturity model integration (CMMI) level 5 software company as the client. We found that managers perceived and mitigated most of the offshoring risk areas in accordance with the findings of previous research. However, the risk area of task distribution was a notable exception. In this case, managers perceived high task uncertainty, equivocality, and coupling across sites as risk mitigation rather than risk taking. The paper discusses how and why managers perceived and mitigated the risk areas in this way and the implications for theory and practice in software development offshoring

Distance Advantages in IS Nearshoring: Do They Matter?

This paper reviews and extends previous literature on information systems offshoring by providing a critical analysis of theadvantages of shorter client-supplier distance in nearshoring projects (as compared to farshoring ones). Prior researchindicated that nearshoring brings forth a number of critical distance advantages, e.g. real-time overlaps, cultural similarities,linguistic connections, as well as political/economical similarities, and that firms increasingly consider nearshoring as part oftheir sourcing strategies in order to benefit from the relative proximity of nearshore suppliers. The conceptual paper at handdevelops six propositions challenging this simplified perspective by presenting emerging arguments which downplayfrequently mentioned advantages resulting from proximity. Our results suggest that the advantages of nearshoring overfarshoring in practice may not be as significant as previously assumed due to a number of factors including small size andavailability of nearshore labor force, limited nearshore supplier experience, and increasing international awareness

Information Systems Offshoring—A Literature Review and Analysis

IS offshoring has become one of the most discussed phenomena in IS research and practice. Particularly due to its rapid evolvement, current research on IS offshoring lacks a consolidated view on existing results. The article at hand seeks to meet this need by systematically reviewing and analyzing prior academic literature on IS offshoring. Based on a review of top-ranked IS and management journals as well as IS conference proceedings, we compile an exhaustive bibliography of ninety-six publications solely focusing on IS offshoring from a (project) management perspective. To adequately address the immense diversity of these publications, a multi-perspective research framework consisting of three perspectives, namely, research focus, research approach, and reference theory, is introduced and forms the basis for our literature analysis. The analysis results confirm the appropriateness of our framework and reveal directions for future research along the framework perspectives: Most importantly, in an effort to increase the significance and the trustworthiness of their results, researchers should apply a more theory-driven approach and provide a better description of their research context. Moreover, future research needs to pay particular attention to the pre-implementation stages of an IS offshoring initiative as well as the special nature of nearshoring and captive offshoring. Across all project stages, researchers should not only concentrate on the client point of view but incorporate multiple points of view