12,202 research outputs found
REVIEWING OUTSOURCING CONTROVERSY IN INDONESIA (An Exploratory Study of Human Resources Outsourcing Practice in Semarang City)
Outsourcing in Indonesia is still a controversy. The different concept of outsourcing
between employers (vendors and users), employees/outsourced workers, and
government makes another problem in outsourcing implementation, especially in
industrial relationship either in enterprise and macro level. This study aims to
determine the concept of outsourcing of each element of the tripartite, the problems
that arise in the implementation, and solutions from each party, in dealing with the
practice of the working system. The problems under study, based on specific issues
related to industrial relations, including: wages, welfare programs, health and safety,
discrimination, job security, and dispute resolution, and termination of employment.
This qualitative research is an exploratory, with the data collection methods:
focus group discussions, observations, interviews, and study documentation. The data
collected from employers (vendors and users), the national unions, worker
outsourcing, and government within the scope of Semarang city.
The results showed that the problems that arise due to differences in each
party's conception of the tripartite elements. Uncertainty rules of outsourcing is a
major problem, giving rise to labor flexibility in the implementation, which implies
profitable for each party, especially the workers of outsourcing. In the end, the
regulation enforcement related to the implementation of the outsourcing firm is badly
needed, to compromise the disputes of workers and employer interests
Analyzing IT Outscoring Relationships as Alliances among Multiple Clients and Vendors
As the business environment become more uncertain and competitive, many organizations are seeking ways to gain economic
efficiency and share in business and technology risk. Despite wide differences in the reference disciplines applied to outsourcing
research, the vast majority of it assumes a one-to-one relationship between the client and the outsourcing vendor. This paper
examines the economic, strategic, and organizational issues involved in IT outsourcing when more complex arrangements are
considered - such as multi-vendor alliances, co-sourcing, and complex multi-vendor, multi-client relationships. In this paper, we
identify a taxonomy of four classes of outsourcing relationships (based on how many clients and vendors are involved in the
outsourcing relationship, and illustrate each with recent business examples. Grounded in this taxonomy, we develop a theoretical
framework that identifies both enabling and constraining forces that may influence client firms in choosing among the four types of
outsourcing relationships. This paper provides insights regarding how the variations in the nature of these outsourcing relationships
may shape the benefits and risks be achieved from outsourcing, as well as the ongoing complexity of managing outsourcing
relationships.Information Systems Working Papers Serie
Effective Strategies for Managing the Outsourcing of Information Technology
More than half of information technology (IT) outsourced projects fail, primarily due to a lack of effective management practices surrounding the outsourcing end-to-end process. Ineffective management of the IT outsourcing (ITO) process affects organizations in the form of higher than expected project costs, including greater vendor switching or reintegration costs, poor quality, and loss of profits. These effects indicate that some business leaders lack the strategies to effectively manage the ITO process. The purpose of this single-case study was to apply the transaction cost economics (TCE) theory to explore strategies 5 business professionals use to manage an ITO project in a financial services organization located in the Midwestern region of the United States. Participant selection was purposeful and was based on the integral role the participants play on the ITO project. Data collection occurred via face-to-face semistructured interviews with the participants and the review of company documents. Data were analyzed using inductive coding of phrases, word frequency searches, and theme interpretation. Three themes emerged: vendor governance and oversight, collaborative strategic partnership, and risk management strategies enabled effective management of ITO. Identifying and executing appropriate outsourcing strategies may contribute to social change by improving outsourcing infrastructure, which might support job creation; increasing standards of living, especially within emerging markets; and heightening awareness of different cultures, norms, and languages among people living in different regions around the world to establish commonalities and gain alignment with business practices
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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
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