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Lean IT
(2017)
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.
IT-Backsourcing
(2019)
The importance of information systems (IS) for companies has grown rapidly over the recent years. For example, companies from various industries are focusing their efforts to digitize business models, to adopt agile forms of collaboration, and to leverage automation of routine tasks. This forces companies to review their IS sourcing strategies and to potentially consider alternatives for current outsourcing contracts.
One potential option could be to backsource IS services currently performed by external vendors. Based on empirical observations, previous academics defined it as the repatriation of all assets, activities, and skills needed to perform IS services back in-house, which had been outsourced previously to one or multiple vendors. The distinctive characteristic of backsourcing is the change in ownership back to the mother organization. This distinguishes the term backsourcing from similar terms, e.g., backshoring, reshoring, or relocating, which rather focus on the change in location of the service delivery. At the initial sourcing decision, the strategy to outsource an IS service was considered most promising. However, certain developments both inside the company, but also on a broader industry level may lead to a re-evaluation of the situation and thus to an adjustment of the original sourcing strategy.
Over the last years, there has been a strong increase in cloud-based services and a shift towards the deployment of standardized, almost “industrialized” applications as services. Before, large companies leveraged their size in realizing economies of scale within their sourcing volumes. The raise of cloud computing as well as standardization of service delivery decreased those benefits and led towards a decline in large outsourcing contracts across a variety of services and a growth of multi-sourcing of individual IS services from the respective “best-in-breed” vendors for shorter time periods. Besides sourcing the best vendor for each service, companies that implement multi-sourcing strategies additionally aim for cost benefits due to an increased competition between vendors, and an increase in agility and adaptability.
At the same time, a move towards multi-sourcing strategies with shorter contract durations leads to an increase in so-called “second generation sourcing decisions”, namely whether to continue outsourcing a respective service or to bring the service back in-house. Given the developments within the IS environment, this research projects aims at understanding why IS services are backsourced and which factors influence a company’s decision to backsource an IS service.
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.
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.
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.
This paper is directed towards IT executives aiming to promote the adoption of cloud computing (CC) with in their company. We conducted a longitudinal case study on the evolving CC strategy and its implementation at the multinational company Continental, based on a previous case study by Loebbecke et al. (2012). We narrate Continental's pathway towards CC adoption, which comprised the experimentation, professionalization, and utilization of CC, and discuss current and previous barriers encountered during the implementation. We derive five lessons learned that can serve as practical guidance for executives aiming to accelerate CC adoption within their own organization: (1) differentiate the CC strategy by delivery model; (2)drive proof of concepts to generate reusable blueprints; (3) preinvest in the integration of IaaS and PaaS providers; (4) implement CC gradually, transforming applications during the transition to the cloud; and (5) disseminate knowledge within the organization to enable change.
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.
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.
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.
