Fakultät Informatik und Mathematik
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This paper identifies critical success factors of Business-managed IT based on case study results. Four groups of critical success factors emerge: (1) general approach to Business-managed IT/Business-managed IT strategy, (2) Business-managed IT project prerequisites/Business-managed IT team, (3) Business-managed IT project execution and outcome, and (4) information technology management for Business-managed IT. The results suggest that bilateral responsibility between the business unit and the IT organization is the most favorable governance option for Business-managed IT.
IT-Backsourcing
(2020)
IT-Backsourcing bezeichnet die Re-Integration vormals outgesourcter IT-Services zurück zum auslagernden Unternehmen. Die vorliegende Studie stellt die Ergebnisse einer Umfrage unter IT-Managern zu Einflussfaktoren von IT-Backsourcing-Entscheidungen vor. Es lässt sich feststellen, dass IT-Backsourcing von Unternehmen in unterschiedlichen Branchen und für eine Vielzahl an unterschiedlichen IT-Services, wie z. B. Applikationsentwicklung oder Infrastruktur-Leistungen, durchgeführt wird. Hauptgründe für die Entscheidung für ein IT-Backsourcing sind mangelnde Qualität, hohe Kosten sowie eine schlechte Beziehung zum IT-Dienstleister. Die Ergebnisse der Umfrage zeigen, dass diejenigen Unternehmen, die sich für ein Backsourcing entschieden haben, nach der Entscheidung insgesamt zufriedener waren als diejenigen, die in einer Outsourcing-Beziehung geblieben sind. Zudem werden verschiedene Handlungsempfehlungen für IT-Manager aufgezeigt. Zur Ausarbeitung einer zukunftsorientieren IT-Sourcing-Strategie empfiehlt es sich, eine service-spezifische Sourcing-Strategie zu verfolgen und entsprechend spezialisierte Dienstleister einzusetzen. Im Falle einer Entscheidung für ein IT-Backsourcing sollten verschiedene Erfolgsfaktoren beachtetet werden, wie z. B. eine frühzeitige Neubesetzung von Schlüsselstellen sowie ein lückenloser Wissenstransfer.
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.
There is a common understanding amongst academics that information systems (IS) research sometimes has limited relevance for practitioners. This can be explained by the fact that research lags behind the fast moving IS environment, has limited practical applicability and is hard to access. We have focused on the research area of IS backsourcing, and analyzed practitioner literature to increase our understanding of topics of interest for practitioners, to determine a potential gap between academic and practitioner literature, and to identify future research directions in this field. We observed that most publications are either news or background articles, focusing on describing backsourcing cases. Additionally, we identified four recurring themes, namely reasons for backsourcing, presentation of survey results, discussion of industry trends, and backsourcing success stories. The main reasons identified to trigger backsourcing decisions are cost savings, quality improvements, and increasing control and flexibility. By comparing our findings with academic literature on IS backsourcing, we conclude that generally both literature types cover similar topics. However, researchers have a more formulative or interpretive focus than the often descriptive practitioner literature. Academic literature also examines a broader range of topics, while practitioner literature has a narrower focus. Additionally, we observe one difference regarding applied terminology: while researchers employ the term backsourcing, practitioners mostly use back in-house or insourcing. Our paper contributes to facilitating the exchange between academics and practitioners, presents topics to consider when aiming to increase practical relevance and provides researchers with concrete directions for future research within the field of IS backsourcing.
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.
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.
Lean Management is a standard production mode that has been familiar to production organizations for several decades. To date, however, academic literature has presented surprisingly little information about the application of Lean Management in Information Technology (IT) organizations, or what is called Lean IT. Drawing upon an empirical qualitative case study of the IT departments of two multinational companies, in this paper we identify change management lessons learned for Lean IT implementations, as well as seven characteristics of a corresponding change management approach. As an extension of our work, researchers should validate and expand our initial findings, preferably in a quantitative setting.
Shadow IT and Business-managed IT describe the autonomous deployment/procurement or management of Information Technology (IT) instances, i.e., software, hardware, or IT services, by business entities. For Shadow IT, this happens covertly, i.e., without alignment with the IT organization; for Business-managed IT this happens overtly, i.e., in alignment with the IT organization or in a split responsibility model. We conduct a systematic literature review and structure the identified research themes in a framework of causing factors, outcomes, and governance. As causing factors, we identify enablers, motivators, and missing barriers. Outcomes can be benefits as well as risks/shortcomings of Shadow IT and Business-managed IT. Concerning governance, we distinguish two subcategories: general governance for Shadow IT and Business-managed IT and instance governance for overt Business-managed IT. Thus, a specific set of governance approaches exists for Business-managed IT that cannot be applied to Shadow IT due to its covert nature. Hence, we extend the existing conceptual understanding and allocate research themes to Shadow IT, Business-managed IT, or both concepts and particularly distinguish the governance of the two concepts. Besides, we find that governance themes have been the primary research focus since 2016, whereas older publications (until 2015) focused on causing factors.