Global IT Multisourcing: Objectives, Challenges And Requirements In Multinational Insurance Companies

In recent times, information technology (IT) multisourcing has emerged as a key strategy in the field of IT outsourcing. Most of the current scholarlyand practitioner-related literature acknowledges the importance of multisourcing, but linear extensions of the dyadic client-vendor relationship are insufficient to capture its nuances. Multinational financial services providers (such as banks and insurance companies) have been pioneers in the fieldof IT outsourcing. However, there is a lack of experience-based research about the implementation of global IT multisourcing. In this article we present findings from a cross-case study investigating the implementation of global IT multisourcing in four leading insurance companies. First, the article presents the objectives of the insurers in pursuing global IT multisourcing. Second, the researchreveals challenges the companies are facing in implementing global IT multisourcing. Finally, requirements for implementing IT multisourcing are derived. The insights of these real-life examples extend existing literature on IT outsourcing and provide helpful orientation for organizations that are implementing global IT multisourcing

Deriving a Research Agenda for the Management of Multisourcing Relationships Based on a Literature Review

There has been considerable development in Information Technology (IT) outsourcing during the last two decades. Nowadays, practitioner-related as well as scholarly literature have identified multisourcing as an emerging key strategy. Multisourcing is described as the blending of services from multiple internal and external vendors. Especially in the case of multisourcing the management of relationships is complex. For a certain field of research it is important to have an overview of the existing literature and a common understanding of basic terms. In this article we identify and analyze the body of knowledge in the area of managing multisourcing relationships. We hence conduct a structured literature review based upon an established literature review framework. It can be observed that the current literature lacks depth in terms of management of multisourcing relationships and that only a few articles cover the aspects of multisourcing in detail. Particularly regarding performance management, governance and knowledge management of multisourcing relationships we propose further research. We subsequently deduce a detailed research agenda for future research options

Towards a Better Understanding of IT Cost Drivers of Asset Management Companies

Effectiveness and even more efficiency are substantial indicators of information technology (IT) performance management. Evaluation of an organisation’s IT performance relies heavily on benchmarking with other organisations. The comparability of IT key performance indicators (KPIs) is critical for resilient benchmarking results. KPI suggestions of established frameworks remain very generic. They are incapable of taking individual characteristics of different business models into account and impede, therefore, a sophisticated benchmarking. Such an occurrence can be observed frequently, especially in the environment of business groups. In the case of one leading international financial service business group, we analysed this problem and applied action research to identify IT cost drivers and develop specific KPIs for the group IT performance management. This article provides insights into a real-life example of evaluating IT performance and suggests a set of KPIs for IT cost efficiency benchmarking among asset management firms within a business group considering the firm’s different business models

IT Shared Service Center and External Market Activities

In the last few years many corporate groups reorganized their IT-Services and established IT Shared Service Centers (IT SSC). These IT SSCs primarily delivered IT services internally; nevertheless some IT SSC provided IT services to external customers as well. These external market activities failed in most cases. In spite of the relevance to organizations, little research has been done investigating the reasons for such failures. In order to address this issue, we have conducted a qualitative study with eight IT SSC cases and five experts interviews. We have triangulated the results between the case studies and the expert interviews and we have identified two set of factors, one explaining IT SCC successes in internal markets and the other explaining IT SSC failures in external markets. The enabling factors for the successes of IT SSCs in internal markets include having the same corporate culture, knowledge of the parent organization and its processes, lower transactions cost, lower average cost, no dependence on external IT service providers, better data protection, improved IT opportunities and obligation to provide services. The factors explaining external market failures include the lack of experience with acquisition, no professional sales and marketing, lack of investment funds, weak unique features of IT services, reassessment of strategic group portfolio by the parent company, higher IT service costs, and inconsistent business models. These findings are relevant to managers of IT SSCs to make decisions on their corporate strategy, as well as to researchers to utilize these findings as a starting point for future research on IT SSCs

Fostering Efficiency in Information Systems Support for Product-Service Systems in the Manufacturing Industry

The ongoing shift towards stronger service orientation is leading to a rising number of industrial services offered in the manufacturing industry. In the attempt to fulfill ever-increasing service demands while at the same time reducing operating costs, manufacturing firms search for appropriate information technology (IT) solution for planning and execution. The industry has not yet reached a common understanding of product-service systems and the corresponding processes and IT systems. In order to holistically support such broad design and transformation tasks, we develop a maturity model capturing the key requirements for the information systems (IS) support of product-service systems based on a multiple case study. For a critical reflection on the extant literature, we compared those requirements with scientifically recognized maturity models and standard specifications. Being an integral part of the design science research approach, the model evaluation is organized in accordance with approved evaluation perspectives

Association for Information Systems AIS Electronic Library (AISeL) Global IT Multisourcing: Objectives, Challenges And Requirements In Multinational Insurance Companies Recommended Citation GLOBAL IT MULTISOURCING: OBJECTIVES, CHALLENGES AND REQUIREMENTS

Abstract In recent times, information technology (IT) multisourcing has emerged as a key strategy in the fiel

State of the art: Managing costs and performance of Information Technology

The management of information technology (IT) is a complex task, particularly in the case of multinational corporations, where installations dispersed across distance and cultures can lead to a low level of transparency on costs and performance. Managing costs and performance of IT describes the discipline of ensuring the effective and efficient usage of IT resources. The aims of this are to provide a common understanding of the topic and delivering an overview of existing frameworks as well as actual research results. The structured literature review approach of this paper turned out that scientists as well as practitioner have not to full extent a common perspective of managing costs and performance of IT. Furthermore, existing frameworks are seldom covering aspects of federal organizations. Actual research results focus mostly on small facets of the entire topic. Particularly regarding governance and federal organization implications we propose further research. The paper concludes with a suggested research agenda for future research opportunities

MANAGING AND MONITORING IT APPLICATION DEVELOPMENT AND MAINTENANCE SUPPLIERS IN A MULTISOURCING CONTEXT

Many international corporations are now adopting multisourcing approaches to information technology (IT). Multisourcing is described as the blending of services from multiple company-internal – such as captive offshore centers – and company-external suppliers, and is primarily concerned with the relationship between the client organization and the suppliers. To date, aspects relating to performance measurement and governance have scarcely been covered in the IT outsourcing literature and established IT frameworks such as COBIT or ITIL provide only imprecise approaches for monitoring suppliers. With this research study, we intend to sharpen the existing understanding of how corporations manage and monitor suppliers in a multisourcing environment. We provide insights into a real-life example of monitoring IT application development and maintenance (ADM) suppliers and suggest a framework with corresponding key performance indicators (KPIs). This article aims to contribute to the existing body of knowledge in three ways. First, it describes established frameworks that are applied when monitoring suppliers; second, it presents insights into a real-life example of monitoring multiple IT ADM suppliers across various business entities in a leading financial services provider; and third, it proposes a framework and corresponding IT ADM KPIs. This research study is also expected to help corporations facing similar challenges by providing a best practice framework with definite KPIs

MANAGEMENT OF IT COSTS AND PERFORMANCE IN BUSINESS GROUPS: ANALYSIS OF UNADDRESSED REQUIREMENTS

Information technology (IT) management is a multifaceted and sophisticated mission, particularly in the context of multinational corporations. Loosely coupled heterogeneous IT systems and almost independent IT departments within business groups around the globe do not facilitate transparency of IT costs and performance. The management of costs and performance of IT, also known as IT controlling, describes the discipline of ensuring the effective and efficient usage of IT resources. The basis of this paper is a case study of seven multinational corporations. Our findings reveal several unaddressed requirements by best-practice IT management frameworks, with regards to managin

The Influence Of Information Technology On Industrial Services In The Manufacturing Industry – A Literature Review And Future Research Directions

In the last 40 years, industrial organizations have optimised their production processes through information technology (IT). Nowadays, manufacturing firms are confronted with shrinking margins, service-demanding customers, and increased competition that are associated with the structural shift from a product-dominant to a service-dominant economy. In order to answer the changed market conditions, those firms started to offer industrial product-service systems that refer to customer life cycle oriented combinations of products and services realised in an extended value-creation network. Since enterprise information systems (IS) are designed and optimised for production planning, a clear lack in functionality and integration for industrial services can be ascertained. In particular, the life cycle management for product-service systems is not adequately covered in current standard software solutions. Firms heavily rely on individual software instead. Due to the cross-disciplinary field of research, it is important to have an overview of the extant literature. Therefore, we present a structured literature review grounded in an established literature review framework. The results suggest that extant literature lacks depth in covering the specificity of industrial services in IT solutions supporting life cycle management. We propose further research in requirements engineering, IT architecture, IT infrastructure, IT governance, and sourcing