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

Success factors in IT Outsourcing

Abstract. To survive and respond to the everchanging business world companies are seeking new ways to concentrate and improve core competencies, as well as improve their competitive status against the market. Companies are exploring how to exploit the core competencies of other companies. The goals of the partnership might differ depending on the scope of the partnership. The goal might be one or many of the following: cost reduction, access to higher quality service, access to technology and/or know-how. Even if the first IT outsourcing was done around 30 years ago by Eastman Kodak and General Dynamics and the area has been studied quite heavily, the topic seems to be still difficult for companies to grasp the wanted benefits. As the IT outsourcing is widely used option in the business world and the results are not firm, I feel the topic is still relevant to study. The research question for the study is: “What factors affect the success of IT outsourcing relationship?” The research question is answered through the literature review. From the literature review eleven high level success factors can be identified. In some cases, some factors are combined. The success factors are Cost and Quality, Trust, Alignment to business strategy, Culture, Communication, Contracts, Strategic Partnership, Governance, Management support, Infrastructure, and Know-how. How important each individual factors are in outsourcing engagement in question depends on the sort of the partnership. The theoretical implications are very limited, but the practical implications regarding communication, trust and governance should be considered when companies enter IT outsourcing partnerships. Putting an emphasis on setting up proper governance functions and people who are good at communicating with the other party will pay the efforts back in success of the relationship

Theory and practice in Finnish teacher education : a rhetorical analysis of changing values from the 1960s to the present day

Our aim in this article is to examine the relationship between theory and practice in Finnish teacher education from the 1960s to the present. We identify four different periods to represent this relationship based on our analysis of national committee and evaluation reports. Theory and practice gradually converged, culminating in a research-based agenda that reflects the current situation. This relationship between theory and practice also reflects the ideal teacher of different times and what a teacher's working orientation should be. We use rhetorical analysis and the concept of a 'philosophical pair' introduced by Perelman and Olbrechts-Tyteca to interpret this development.Peer reviewe