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The identification of suitable applications or projects is a main initial step in any software development or maintenance related IS offshoring arrangement. This paper examines evaluation criteria and their importance for selecting application or project candidates for offshoring. Based on a literature analysis and interviews with 47 experts from 36 different German companies describing 64 case examples, we find that in contrast to the literature, “size”, “codification”, and “language” are perceived as important selection criteria by experts. Case examples additionally show that “business specificity” seems to be a main reason for application or project failures, that “business criticality” appears to be less important than suggested by the literature, and that adequate “size” might be a necessary prerequisite, but seems not to be a sufficient criterion for an application’s or project’s suitability for offshoring. These differences in comparison to findings from the literature may be explained by cultural and language differences.
This paper empirically examines the current state of the IS offshoring phenomenon in Germany regarding project characteristics and success patterns. Relying on a sample of 304 projects conducted at various industry sectors and companies, results show that IS offshoring primarily occurs in sectors Telecommunications and IT at large corporations. Cost reduction is the main reason for going offshore and offshore projects are executed as part of a larger program at companies. Noticeably, most projects are delivered from India. Additionally, neither captive offshoring nor offshore outsourcing dominates as a de-livery option. Comparing different project subgroups regarding project success, the results reveal that projects delivered by an internal or partially owned service provider are more successful. Other project characteristics such as a project’s embedded-ness in a larger offshoring program, a project’s size, or a project’s offshoring degree in terms of relatively offshored labor hours show few significant differences. The paper addresses the paucity of empirical research on the current state of the IS offshoring phenomenon in Germany.
This paper develops a categorization of cloud security risks, elaborates how they impact information security, and discusses potential security benefits from cloud sourcing. This review integrates the literature on information systems and computer science to summarize managerial and technological mitigation measures that enhance cloud security. The analysis uncovers gaps regarding the empirical investigation of security considerations in the corporate decision-making process. Specifically, the micro level of how security comes into play in the decision-making process and whether mitigation measures proposed by scholars are practically feasible requires further investigation. Furthermore, the macro level, how stakeholders perceive cloud sourcing, is not yet well understood.
Business-managed IT and Shadow IT describe the autonomous deployment/management of IT instances by business units. For the former, this happens in alignment with the IT organization of the enterprise, for the latter, without alignment. We analyze why and how Business-managed IT and Shadow IT transform knowledge sharing with two case studies drawing on the theoretical lens of the knowledge-based view. Several motivators lead to the autonomous implementation of knowledge management systems (KMSs), for example, shortcomings of existing systems. The implemented KMSs have multiple benefits for knowledge sharing, such as a reduction of knowledge sharing barriers. However, we notice that the Shadow IT KMS leads to challenges for cross-unit knowledge sharing due to the covert nature of Shadow IT. Based on the findings of our case studies, we develop a mid-range theory to explain the transformation of knowledge sharing in enterprises supported by Business-managed IT and Shadow IT.
A quantitative analysis of culture-induced differences in pivotal IT outsourcing contract features
(2019)
More than 30 years after its first implementation, IT outsourcing (ITO) is unanimously considered a critical component of corporate strategy for private and public institutions alike. While implementations of ITO around the world share some common characteristics like typical reasons for outsourcing, key success factors, or dimensions along which they can be classified, extant research also points to regional differences. However, research on this topic, specifically regarding pivotal contract features like contract value, contract length, or pricing methods, is still in its infancy, and quantitative analyses on the subject are particularly scarce. We address this research gap by analyzing data on 14,917 ITO contracts closed between 2007 and 2017 through the lens of cultural regions and three statistical methods. The contribution of our paper is threefold. First, our descriptive analysis points to globally decreasing contract lengths and contract values, confirming previous studies and practice reports. Second, an ANOVA with independent post-hoc testing provides quantitative supportfor the degree of dissimilarity among individual regions in pivotal ITO contract features. Finally, our quantitative replication of a previous study identifies culture-induced regional differences between USA and Japan regarding the effect of influence factors on ITO contract features.
Adaptive Moment Estimation (Adam) is a very popular training algorithm for deep neural networks, implemented in many machine learning frameworks. To the best of the authors knowledge no complete convergence analysis exists for Adam. The contribution of this paper is a method for the local convergence analysis in batch mode for a deterministic fixed training set, which gives necessary conditions for the hyperparameters of the Adam algorithm. Due to the local nature of the arguments the objective function can be non-convex but must be at least twice continuously differentiable.
One of the most popular training algorithms for deep neural networks is the Adaptive Moment Estimation (Adam) introduced by Kingma and Ba. Despite its success in many applications there is no satisfactory convergence analysis: only local convergence can be shown for batch mode under some restrictions on the hyperparameters, counterexamples exist for incremental mode. Recent results show that for simple quadratic objective functions limit cycles of period 2 exist in batch mode, but only for atypical hyperparameters, and only for the algorithm without bias correction. We extend the convergence analysis to all choices of the hyperparameters for quadratic functions. This finally answers the question of convergence for Adam in batch mode to the negative. We analyze the stability of these limit cycles and relate our analysis to other results where approximate convergence was shown, but under the additional assumption of bounded gradients which does not apply to quadratic functions. The investigation heavily relies on the use of computer algebra due to the complexity of the equations.
High labor cost in western countries allows cost savings by companies engaging in IS offshoring. However, studies worldwide indicate that a large number of companies that engaged in IS offshoring are not satisfied with the outcome. Our study examined the determinants of IS offshore project success: We developed a model and empirically tested it with data collected from 304 experts who reported on projects offshored from Germany to a wide range of near and distant countries. The model posited a direct effect of offshoring expertise and trust in offshore service provider (OSP) on success, as well as an indirect effect mediated by project suitability, knowledge transfer, and liaison quality. An analysis using partial least squares (PLSs) provided significant support for almost all these relationships. However, it showed that offshoring expertise played a minor role in explaining success and the mediating constructs. Trust in OSP had a small direct effect on success and a medium to large effect on the mediating constructs. Project suitability, knowledge transfer, and liaison quality all had small direct effects on success.
In der Produktion gilt „Lean Management“ als einer der de-facto Standardmanagementansätze. Lean Management in IT-Organisationen (Lean IT) ist dahingegen in der Praxis weniger verbreitet und in der Wissenschaft kaum erforscht. Dieser Beitrag aggregiert und erweitert die Ergebnisse mehrerer Forschungsarbeiten. Dabei werden vorrangig zwei Aspekte diskutiert: (1) Ein mögliches Einführungsmodell für Lean IT. Dieses verknüpft fünf Rollen (Sponsor, Programmleiter, Navigator, Linienführungskraft und Linienexperte) mit vier Phasen (Vorbereitung, Analyse, Gestaltung und Implementierung). (2) Besondere Herausforderungen für Linienführungskräfte, die aufgrund der „bottom up“-Ausrichtung bei Lean-IT-Einführungen stark gefordert werden. Neben einer klaren Vision für die Organisationseinheit und dem Verständnis, an welcher Stelle Lean IT die Organisationseinheit konkret unterstützen kann, benötigen sie Offenheit, Veränderungswillen und die Bereitschaft Verantwortung an Mitarbeiter zu delegieren. Außerdem sollten sie über ein ausreichendes Zeitbudget für die Einführung verfügen, um ihrer gestaltenden und qualitätssichernden Funktion nachkommen zu können.
Basierend auf einer systematischen und umfangreichen Analyse von Praxisbeiträgen zum Thema Schatten-IT, die zwischen September 2015 und August 2016 erschienen sind, beschreibt der vorliegende Artikel Governance-Aspekte zu diesem Phänomen. Er ergänzt damit vorhergehende akademische Studien. Es zeigt sich, dass unter Praktikern der Eindruck vorherrscht, dass IT-Abteilungen unter zunehmendem Druck stehen, schneller auf sich ändernde Anforderungen aus den Fachbereichen reagieren zu müssen. Können IT-Abteilungen diesen Erwartungen nicht entsprechen, beschaffen sich Fachbereiche und Nutzer selbst Lösungen in Form von Schatten-IT. Als mögliche Antwort darauf kann sich die IT-Abteilung agiler organisieren und die IT-Architektur im Unternehmen modernisieren. Eine weitere Möglichkeit besteht darin, sich das innovative Potenzial von Schatten-IT zunutze zu machen und deren Umsetzung aktiv durch organisatorische und technische Maßnahmen zu unterstützen. IT-Sicherheitsmanagement und technische Schutzmechanismen können helfen, die so entstandenen Lösungen abzusichern und die Risiken zu minimieren. Nach vorherrschender Ansicht entwickelt sich die IT-Abteilung als Konsequenz aus all diesen Maßnahmen zu einem nutzerorientierten, internen Service-Provider und strategischen Partner für die Fachbereiche.