Factors impacting knowledge transfer success in information systems outsourcing

Despite increased research interest on knowledge transfer in information systems (IS) outsourcing, the field still lacks sound and holistic understanding of the key factors influencing knowledge transfer success. The present paper attempts to provide a synthesis of existing theoretical perspectives and empirical findings related to the factors that facilitate or hamper knowledge transfer success in IS outsourcing. The data collection method is discussed and the key findings are presented. Conclusion is drawn and further research is suggested

Outsourcing the Human Resource Function: Environmental and Organizational Characteristics that Affect HR Performance

A theoretical model is presented that identifies environmental and organizational characteristics that affect human resource (HR) performance in an organization. Specifically, we address the issue of when and under what circumstances does HR outsourcing contribute value to the firm by attempting to identify environmental and organizational characteristics that affect HR department performance and how HR outsourcing mediates that relationship. We propose that supplier competition in the HR provider market has a direct effect on the amount of HR outsourcing which in turn has a direct effect on HR performance. Environmental uncertainty (primary, competitive, and supplier) is proposed to moderate the relationship between amount of HR outsourcing and HR performance while asset specificity is proposed to moderate the relationship between supplier competition and amount of HR outsourcing. An earlier version of this paper was presented at the Southwest Academy of Management meeting in Houston, Texas, March, 2003, and received the 2003 Irwin/McGraw-Hill Distinguished Paper Awar

How Client Capabilities, Vendor Configuration and Location Impact BPO Outcomes

Despite the increasing use of onshore and offshore business process outsourcing (BPO), a comprehensive literature review [38] finds that there has been limited empirical research on BPO outcomes. This article responds to the call for research by developing and testing a conceptual model for BPO outcomes using data from 50 firms publicly traded in the U.S., including 38 firms in the Forbes Global 2000. We find that client firm capabilities, vendor configuration, and country location lead to interesting tradeoffs in the BPO quality, cost, and time outcomes. For example, while multi-sourcing offers advantages such as risk mitigation, client firms encounter reduced BPO time benefits when they use multiple vendors. While onshore BPO can lead to an improved quality, higher onshore labor costs result in lower BPO cost savings. And while offshore destinations such as India offer lower labor costs, time zone differences lead to reduced BPO time benefits

The Fit between Client IT Capability and Vendor Competence and Its Impact on Outsourcing Success

This study investigates the impact of client firm’s IT capability, vendor firm’s competence and their fit on the outsourcing success. In theory building, by concretizing the concepts of IT capability and competence based on the resource-based view, the importance of fit between the client’s IT capability and the vendor’s competence is emphasized. We then hypothesize that both factors are stronger together than the individual impact of either the client’s IT capability or the vendor’s competence. For validation, 267 client-vendor-matched-pair data were collected. To avoid potential imbalance caused by the bilateral perspective, an exploratory approach, all-possible-subsets-regression method was adopted. The results reveal that the vendor’s competence is the most significant factor in outsourcing success, but interestingly, the fit between vendor competence and the client’s IT capability is the second most important. The client’s IT capability also has a positive impact on outsourcing success but with the smallest explanation power

Development of an integrative model for electronic vendor relationship management for improving technological innovation, social change and sustainability performance

Vendor relationship management (VRM) is a software tool that helps to provide seamless connectivity between buyer and supplier. With the rapid development of information and communication technology (ICT) most firms have migrated to electronic VRM (EVRM) capability. Only a few studies have examined how EVRM can impact the dynamic B2B capability of firms that combine technological and social innovation in support of transitions and the achievement of business goals. There are also very few interdisciplinary studies using a range of performance matrices to explore the relationship between firms' dynamic B2B capabilities and their sustainability performance, mediated through their various sustainable growth opportunities. In this context, this study aims to develop an integrative model for B2B EVRM capability and firm sustainability. With the help of dynamic capability view (DCV) theory and related literature, a theoretical model is proposed. This model was later validated using the covariance-based structural equation modeling technique (CB-SEM), in considering 378 responses from Indian firms. The study has three main findings. First, EVRM capability significantly and positively impacts B2B dynamic relationship capability between the firm and the vendors. Second, B2B dynamic relationship management capability has a significant and positive impact on firms' sustainability performance mediated through the financial, environmental, and operational performance of the firm. And third, Environmental dynamism (ED) plays a significant role as a moderator, influencing B2B dynamic relationship management capability

The impact of IT vendor to firm’s IT outsourcing

This study seeks to better understand the impact of IT vendor to firm’s IT outsourcing in Korea. Using the event study methodology, we empirically analyze the impact of IT vendor in Korea. IT vendors’ characteristics (such as services with asset specificity, size, and nationality) that may affect the success of IT outsourcing are considered. We find that IT outsourcing announcements significantly increase firms’ market value in Korea. In terms of IT vendors’ characteristics, our study find that IT outsourcing announcements with large vendors are statistically significant while with small vendors are not. We also find that the market response to Korean IT vendor is significantly greater than to foreign vendor. However, unlike the US, the difference between IT outsourcing for high asset-specific service and for low asset-specific service is not found

Flattening the World of Legal Services? The Ethical and Liability Minefields of Offshoring Legal and Law-Related Services

This article examines offshore outsourcing of legal and law-related services as the newest twist in the international market for legal services. We consider the impact of offshore outsourcing on the profession generally and analyze the ethical issues raised by offshore outsourcing, both as it exists today and as the practice may develop in the future. The article begins by situating offshore outsourcing in the framework of relationships created in the context of delivery of legal services. This framework is used, in turn, to construct a structure of analysis for the ethical implications of offshore outsourcing. Lawyers who outsource to offshore providers must conduct an investigation to ensure that the referral is appropriate. We also consider the potential reputation and economic benefits and disadvantages to law firms and legal departments in outsourcing offshore. We find that offshore outsourcing creates new opportunities for non-U.S. lawyers without putting them on equal footing with lawyers trained and licensed in the U.S. Instead, as with many aspects of globalization, offshore outsourcing emphasizes the divisions already present in the legal profession

The Effect of Conflict Resolution Methods on the Implemenation of IS Outsourcing

This study investigates the effect of conflict resolution methods on the IS outsourcing performance. A survey of 207 IS outsourcing relationships of U.S. firms indicates that (1) constructive/proactive methods, such as joint problem solving, is positively related to the success of IS outsourcing relationships, and that (2) destructive/passive methods, such as persuasion, smoothing/avoiding, domination, and use of harsh words are negatively related to the success of IS outsourcing relationships. The findings suggest that the manner in which conflict is resolved can be productive or destructive for the IS outsourcing performance

Flattening the World of Legal Services? The Ethical and Liability Minefields of Offshoring Legal and Law-Related Services

This article examines offshore outsourcing of legal and law-related services as the newest twist in the international market for legal services. We consider the impact of offshore outsourcing on the profession generally and analyze the ethical issues raised by offshore outsourcing, both as it exists today and as the practice may develop in the future. The article begins by situating offshore outsourcing in the framework of relationships created in the context of delivery of legal services. This framework is used, in turn, to construct a structure of analysis for the ethical implications of offshore outsourcing. Lawyers who outsource to offshore providers must conduct an investigation to ensure that the referral is appropriate. We also consider the potential reputation and economic benefits and disadvantages to law firms and legal departments in outsourcing offshore. We find that offshore outsourcing creates new opportunities for non-U.S. lawyers without putting them on equal footing with lawyers trained and licensed in the U.S. Instead, as with many aspects of globalization, offshore outsourcing emphasizes the divisions already present in the legal profession

Buying Core Competencies?A Study of the Impact of Outsourcing on IT Infrastructure Flexibility

In business, information technology (IT) outsourcing is the practice of purchasing information systems equipment or services from a vendor external to the firm. In businesses where information technology is key to business processes or products, issues concerning outsourcing are quite controversial. Does outsourcing allow firms to reduce high overhead costs and thus improve overall performance? Or does purchasing information systems services from the market weaken the business\u27s position to use the technology either to innovate strategic uses or to keep up with competitors\u27 innovations? A great deal of print has been dedicated to this debate in practitioners\u27 professional and trade journals (see, for example, Halper\u27s 1993 works) as well as in high-profile case studies (Huber 1993, and Loh and Venkatraman 1992b). Yet little deliberate research has been conducted to date (a notable exception is Loh and Venkatraman, 1992a). In a 1994-95 study on IT infrastructure flexibility in the insurance industry, data on outsourcing behavior was collected from 82 firms to determine whether it affected infrastructure flexibility. Preliminary analysis of the data has resulted in evidence that in the insurance industry, outsourcing is negatively correlated with certain characteristics of infrastructure flexibility. This paper summarizes the theoretic grounds for both attitudes about outsourcing, briefly describes the study conducted, and explains the nature of the early findings