Understanding task inter-dependence and co-ordination efforts in multi-sourcing: the suppliers' perspective

The last decade has witnessed a significant growth in the outsourcing of information technologies and business processes. Of a particular trend within the outsourcing industry is the shift from the client firm contracting a single supplier to utilizing multiple suppliers, which is also known as multi-sourcing. Multi-sourcing may potentially offer numerous advantages to client firms, however, it might present some challenges to suppliers. In particular, multi-sourcing could create coordination challenges, as there are inter-dependencies between the outsourced tasks to numerous suppliers. While the current outsourcing literature acknowledges the existence of inter-dependencies, little is known about the efforts required for coordinating the work between suppliers and how these coordination efforts are made to manage task inter-dependence. Three case studies at Pactera (case one) and TCS (cases two and three) serve as the empirical base to investigate the inter-dependence between outsourced tasks and suppliers coordination efforts. This research offers theoretical contributions to both coordination studies and the outsourcing body of knowledge

A Capability Framework for IT Service Integration and Management in Multi-Sourcing

Multi-sourcing, the blending of services from multiple external and internal providers, has gradually become the standard mode of operation in IT outsourcing. It allows companies to assemble a best-of-breed provider portfolio and to reduce costs. A key difference between single- and multi-sourcing is the potential interdependence between services delivered by multiple providers. To deliver a seamless service to the client’s business units, various services often need to be integrated and managed as an end-to-end service. This activity is denoted as service integration and management. Many clients, however, are having difficulties implementing and performing this important task. Therefore, we explore which IT capabilities organizations need to build for performing service integration and management. \ \ After deriving challenges from literature, we perform a multi-stage qualitative study based on a series of focus group sessions and expert interviews. In a qualitative content analysis, we develop a framework of IT capabilities which enable successful service integration and management by addressing the key challenges. We, thus, aim to contribute to more effective multi-sourcing solutions in practice and to lay the groundwork for future research in this important field

Investigating ‘Churnalism’ in real time news

Language Use in Past and Presen

Software as a Service (SaaS) for Small and Medium Enterprises (SMEs): The Role of Intermediaries

Software as a Service (SaaS) is anticipated to provide significant benefits to small and medium enterprises (SMEs) due to ease of access to high-end applications, 7*24 availability, utility pricing, etc. However, underlying SaaS is the assumption that SMEs will directly interact with the SaaS vendor and use a self-service model. In practice, we see the rise of SaaS intermediaries who support SMEs with using SaaS. This paper reports on an empirical study of the role of intermediaries in terms of how they support SMEs in sourcing and leveraging SaaS for their business. The contributions of this paper are: (1) the identification and description of the role of SaaS intermediaries and (2) the specification of different roles of SaaS intermediaries, in particular a more basic role focussing on technological and operational issues and a more added value role with a broader customer and strategic alignment perspective

Towards Multi-Sourcing Maturity: A Service Integration Capability Model

When outsourcing IT services, many enterprises today resort to multi-sourcing. It allows them to reduce costs and assemble a best-of-breed service portfolio. However, this usually also increases complexity. Despite the economic importance of multi-sourcing, though, there is no systematic understanding of the capabilities required to successfully integrate interdependent services and to manage multi-sourcing. This paper develops a capability model for service integration in a grounded coding approach based on literature and expert interviews. The model identifies six key capabilities and 18 sub-capabilities. We evaluate its applicability and validity via an empirical survey and two in-depth case studies. In addition, provide various insights into the implementation of service integration functions. Our contribution should provide orientation for companies how to direct their transformation efforts. It outlines an agenda for future research and builds a solid foundation for maturity models to improve multi-sourcing readiness – ultimately leading to more effective multi-sourcing solutions

Governance Methods Used in Externalizing Information Technology

Information technology (IT) is the largest capital expenditure in many firms and is an integral part of many organizations\u27 strategies. However, the benefits that each company receives from its IT investments vary. One study by Weill (2004) found that the top performer in the sample was estimated to have as high as a 40 greater return on its IT investment than its competitors. To expedite the progress toward getting better value from IT investments, along with the need to deal with the increasing complexity and expense of IT, a growing number of companies are turning to outside service providers to develop and/or manage various aspects of their information systems. The governance methods used by firms to maintain control over the quality, services, and cost of IT outsourcing are the focus of this dissertation.Previously in the literature, researchers have looked into the phenomenon of outsourcing from various perspectives. However, existing literature has not constructed or proposed an outsourcing model that examines the important moderating impact of internal technical capabilities to governance mechanisms. Building on existing literature related to IT outsourcing, this dissertation examines governance mechanisms that were used by firms to maintain control over the quality, services, and the cost of outsourcing of IT in order to identify their contribution to the success of IT outsourcing initiatives from the perspective of managers whose companies have engaged in IT outsourcing. In this dissertation, a research model was developed, and through an on-line survey instrument, data were collected from the members of the Information Systems Community of Practice in the Project Management Institute. The findings showed that the following governance mechanisms had positive impact on managerial perceptions of IT outsourcing success: (1) Financial commitment in the form of dedicated asset-specific investments and (2) attitudinal commitment. This study also confirms the moderation effect that firm technological capab

Sourcing, Risk and the Financial Market

Outsourcing has become a commonly accepted alternative of strategic management. But how do stockholders rate the corporate decision to divest parts of the former business? We study the stock market reaction of outsourcing announcements of the global financial services industry, using event study methodology and multivariate cross-sectional regression analysis. We analyze a sample of 162 outsourcing transactions between 1997 and 2004 in order to investigate the drivers of excess returns to shareholders of outsourcers and insourcers in the global financial services industry. The analysis studies the impact of independent variables, the driving factors. Our findings indicate that many of these factors have significant explanatory power, indicating that capital market’s reaction to an outsourcing announcement might at least partly be forecasted. Partnering with experienced service providers significantly benefits the outsourcer. Evidence indicates that insourcers significantly benefit from large deals and transactions relating to traditional IT processes

Opening the Black Box of Advisors in Information Technology Outsourcing: An Advisory Activity Model

Information technology outsourcing (ITO) is an important market phenomenon and research topic. Recently, research has identified advisors as a key driver for successful ITO engagements. In this paper, we investigate the activities of third-party advisors in ITO engagements for the first time. We used an exploratory qualitative research approach and conducted 14 expert interviews with experienced industry practitioners. In analyzing the data, we identified 104 activities that serve as the basis for a novel IT advisory activity model for ITO. We also identified common viewpoints among the practitioners and matched them with findings from other research studies based on a literature review. Our model provides interesting insights into ITO and the role that advisors play in client-vendor relationships. This study delivers a basis for further research about advisors’ influence on clients and vendors in the ITO context