Infusion of social innovation in outsourcing for developing countries: A case in Nepal

Outsourcing has been a buzzword in the business world for last several decades. Information Technology Outsourcing (ITO) and Business Process Outsourcing (BPO) have been dominating the outsourcing jobs to developing countries. Recently, a new shift of outsourcing to impact sourcing have emerged through which digitally-enabled jobs are given to marginalised individuals so that their material conditions would be improved. The aim of this paper is to analyse effects from impact sourcing service providers (ISSPs) on the local communities. First, major stakeholders such as the providers, employees (the communities) and the clients (companies using impact sourcing), have been analysed. Theoretical framework is prepared to show their motivations to be part of the impact sourcing. Altruistic hearts and intents of both the providers and the clients could be a base to promote this impact sourcing model to the next level

The strategic motivation factors for it outsourcing decisions in the banking sector

Outsourcing is the fact of delegating the supply of a given service to an external organization. This phenomenon is a widespread strategy in the corporate business world. The outsourcing of information technology in the banking sector has particularly called our attention. Banking activity is highly dependent on the information technology (IT) process. Banks opt for an Information Technology Outsourcing (ITO) strategy to enjoy expertise from a supplier without hiring experts. Therefore, ITO gives the bank access to technological skills. Meanwhile, it allows the bank to improve the quality of services, reduce cost, provide flexibility, and focus on core activity. Our aim is to study the main factors that motivate ITO strategic decisions in the banking sector. To answer this inquiry, we develop a conceptual model consisting of four ITO factors corresponding to four hypotheses, which will be tested based on the data collected by a survey performed within a multinational bank. Inspiring by solid and contemporaneous scientific research, we apply a survey within our targeted sample and collect data through email. Our result has shown that majority of responders preconize ITO. They recognize ITO strategic motivation factors as saving cost, allowing access to new technology, and focusing on core business and quality service improvement. Besides those benefits, ITO strategy may arise some risks summarized in this paper. We conclude that a successful ITO alliance enables the bank to achieve a competitive advantage over their competitors

Industry Career Guide: IT-BPO

Off-shoring describes the relocation by a company of its business processes like manufacturing, operations, and support processes to other countries, particularly in global production networks. Outsourcing involves the contracting of a third party to perform the necessary processes within the company. The recent development of the ability of companies to outsource suppliers outside the nation gave rise to the concept of off-shoring which not only implies foreign inputs to work domestically, but involves cross-country collaborations as well. The Off-shoring and Outsourcing (O&O) Industry is known widely as the IT-BPO (Information Technology – Business Process Outsourcing) industry. The industry is relatively new, but the dynamism it exhibits is great. Global O&O has grown to 15% in 2008, which is the third largest around the world. In 2008, the industry contributes 3.6% of Philippine GDP and 12.36% of exports which is particular in the export of services

Globalization, Worker Insecurity, and Policy Approaches

[Excerpt] Today’s global economy, or what many call globalization, has a growing impact on the economic futures of American companies, workers, and families. Increasing integration with the world economy makes the U.S. and other economies more productive. For most Americans, this has translated into absolute increases in living standards and real disposable incomes. However, while the U.S. economy as a whole benefits from globalization, it is not always a win-win situation for all Americans. Rising trade with low-wage developing countries not only increases concerns of job loss, but it also leads U.S. workers to fear that employers will lower their wages and benefits in order to compete. Globalization facilitated by the information technology revolution expands international trade in a wider range of services, but also subjects an increasing number of U.S. white collar jobs to outsourcing and international competition. Also, globalization may benefit some groups more than others, leading some to wonder whether the global economy is structured to help the few or the many. The current wave of globalization is supported by three broad trends. The first is technology, which has sharply reduced the cost of communication and transportation that previously divided markets. The second is a dramatic increase in the world supply of labor engaged in international trade. The third is government policies that have reduced barriers to trade and investment. Whether these trends are creating new vulnerabilities for workers is the subject of increasing research and debate

The sustainability of India’s comparative advantage in it offshore outsourcing

In an increasingly competitive business environment characterized by more globalization, deregulation and technological advances, companies have been looking for ways of differentiating their products and services and also rethinking their business model through leaner operations and reduced costs. In this context, a new practice that has recently gained a lot of attention is the offshore outsourcing of information technology (IT) activities and services. It has become an increasingly attractive proposition to companies and organizations in industrialized countries. The most often cited benefit of such a practice is its cost-effectiveness; i.e., the ability of having business tasks or processes performed in an offshore country (most often in India) at an equal quality but significantly reduced cost than doing them at home. This paper presents the benefits and concerns in IT offshore outsourcing and discusses the sustainability of the comparative advantage that India has as the leading offshoring destination in the world. It argues that the currently low wages of skilled IT staff in India may be eroding over time and companies will be shifting their attention to other value-adding benefits as opposed to looking in offshoring countries for just lower cost provision of IT tasks and services

Outsourcing: the Security Risk Management Challenge

The globalisation of business and the growth of the digital networked economy means that virtually any business process can be undertaken by someone else, somewhere in the world. To achieve business transformation within the UK Information and Communication Technology (ICT) sector, BT is taking a strategic approach to outsourcing: this has resulted in a rapid and substantial increase in the outsourcing and offshoring of ICT development, maintenance and support contracts. Each and every outsourcing decision could have major security, legal, regulatory and contractual impacts. It is generally recognised that risks are likely to be compounded when outsourcing to companies based in countries that have different political, economic and cultural environments and, subsequently, that security assessments must be augmented to address this. However, difficulties can occur with the ongoing ownership of responsibilities for outsourced information and its processing, particularly when a number of vendors may be involved with the same product or service. Outsourcing security risks are becoming increasingly dynamic and complex, have major business implications and require both tactical and strategic responses. This presents many challenges for corporate security functions and, to be effective, security assessments must feed into business risk assessments and decisions. This paper describes the approaches taken by BT to ensure that security risk assessments are conducted within a consistent framework and integrated into decisionmaking processes for outsourcing ICT contracts. Specific tools and techniques have been developed to ensure that engagement with stakeholders is effective and timely, that risks and requirements are identified and understood, and that risk mitigation and management strategies are implemented within appropriate compliance and governance frameworks. The method employed by BT is based on the UK Government’s Infosec Standard No. 1: Residual Risk Assessment Method (IS1) and has been tailored to suit a commercial environment. To implement the method, many sources of security profiling data have been consolidated from across the business to create a full picture of information confidentiality, integrity and availability risks; this includes legal and regulatory issues and BT’s responsibilities as a fundamental component of the UK Critical National Infrastructure. This has enabled new approaches to categorising systems and applications in terms of data value and impact. To cater for the ‘industrial scale’ volume of outsourcing requests, automation has been introduced to enable consistent and speedy assessments and to improve the means of communicating the results to stakeholders. The paper also highlights the importance of a taking a hierarchical approach to conducting risk assessments and setting security requirements – within the context of system and contract lifecycles and the need for effective protective monitoring and audit regimes

Success factors in IT outsourcing:vendor’s view

Abstract. The world is getting smaller and thus competition gets fiercer. Therefore, companies are seeking new ways to utilize other companies core competencies by partnering with them. The success of these partnerships is important for both parties. Success factors of an IT outsourcing relationship has been studied quite a bit since the first ones took place in 1990’s. However, due to nature of IT, the outsourcing has been seen cumbersome and thus, it is an appealing topic to investigate. The topic of the thesis was to investigate the definition of success and success factors of an IT outsourcing relationship from vendor’s point of view. Consequently, the research questions are: RQ1: What constitutes a successful IT outsourcing relationship from vendor’s point of view? RQ2: Which factors affect IT outsourcing relationship success from vendor’s point of view? The research questions are answered based on the literature review and data produced in semi-structured interviews, utilizing qualitative research methods. In RQ1 the data analysis method was deductive. The RQ2 answer is conducted from factors identified in literature review, and the factors that were listed as success factors, from vendor’s point of view, in the interviews are counted as success factors in this study. RQ1 answer: The successful IT outsourcing relationship from vendor’s point of view is achieved when the pre-set goals are met. The most fundamental goal is to make business. More precisely, the goals usually are mainly monetary, but they can also be related to developing vendor’s capabilities, or other strategic objectives. RQ2 answer: The success factors identified are communication, trust, strategic partners, governance, contract, competence, culture, and management support as well as personal relationships and chemistry. Combined factors affecting the success are information sharing, business understanding, benefit/risk sharing, interdependence, commitment, coordination, and conflict management, and social competence. The factors might be connected to each other, but their connection and importance depends on the nature and situation of the relationship. This research is done from vendor’s point of view, even if the literature review is originally done from both parties’ point of view. None of the success factors directly affect the IT outsourcing relationship to be successful. They however improve the likelihood of longer relationship and make the relationship more reliable source of income. The study introduces two new success factors 1) social competence, 2) personal relationships and chemistry. The practitioners should ensure that the goals are defined before entering into the relationship. The vendor should also make sure that the vendors’ personnel interacting with customers have high social competence, as well as production and technology related competence is sufficient, and the contract suits the delivery

A Study On Influencing Factors And Performance Of Logistics Outsourcing Practices Among Electrical And Electronics Firms In Malaysia

Penyumberluaran aktiviti logistik telah menjadi strategi popular bagi kebanyakan organisasi dalam memburu kecemerlangan operasi di era persaingan sengit pasaran global. Logistics outsourcing has been growing as a popular strategy for many organizations in pursuit of operational excellence despite the fierce competitive market globally

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