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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.
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.
An increasing amount of IS offshoring research has been published during the last four years. This paper presents a comprehensive view of the field of study from a managerial point of view. It provides a consolidated view of the field of study between 2010 and 2013 based on a manual search comprising 69 selected journals and 9 conferences, as well as a search using 6 journal databases. The literature review ensures continuity of research by connecting to a comprehensive literature analysis covering the years 1999 to 2009. This way it consolidates and critically reflects the state of the research of the last 14 years. Overall, we compiled 95 relevant publications originating from leading IS journals and IS conference proceedings. The results indicate that IS offshoring research is largely non-theory based, using almost entirely empirical data and interpretive research methods and -to a smaller extent -positivist research designs. The ISO research of the last 14 years focuses on the implementation stages "how" and "outcome" while the pre-implementation-stages “why”, “what”, and “which” are comparatively sparsely researched. Future studies should apply a more theory-driven approach with a greater attention on pre-implementation aspects of information systems offshoring. In addition, future research should investigate the special nature of near- and onshoring, captive offshoring as well asagile (project) management techniques suitable for ISO.
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.
Information systems backsourcing describes the transferof previously outsourced activities, assets, or personnel back to the originating companyto regain ownership and control. While there is much research on information systems outsourcing, the topic of backsourcing information systemsis still an emerging research area. Therefore, ourpaper aims to explore and synthesizethe existing literature on information systemsbacksourcing, since there is no exhaustiveliteraturereview of the state of the research to our knowledge available yet. In this paper, wecreate a framework to structure the existing research along the overallbacksourcing process. We identifydifferent motivators, such asexpectation gaps, orinternal and external organizational changes, leading towards a backsourcing decision, and factors positively or negatively influencing this decision. Additionally, we derive implementation success factors based on the existing literature to guide companies through the backsourcing process.We also differentiate the term backsourcing from related, sometimes synonymously used terms, by emphasizing the change of ownership back to the company of originas the main criterion.Additionally, we discuss opportunities for future research in the field of information systems backsourcing.
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.
Purpose
This paper aims to investigate the main tasks, necessary skills, and the implementation of the offshore coordinator’s role to facilitate knowledge transfer in information systems (IS) offshoring.
Design/methodology/approach
This empirical exploratory study uses the classical Delphi method that includes one qualitative and two quantitative rounds to collect data on IS experts’ perceptions to seek a consensus among them.
Findings
The participants agreed, with strong consensus, for a set of 16 tasks and 15 skills. The tasks focused primarily on relationship management and facilitating knowledge transfer on different levels. The set of skills consists of approximately 25 per cent “hard” skills, e.g. professional language skills and project management skills, and approximately 75 per cent “soft” skills, e.g. interpersonal and communication skills and the ability to deal with conflict. Two factors mainly influence implementing the offshore coordinator role: project size and the number of projects to be supported simultaneously.
Practical implications
The findings provide indications of how to define and fulfill this crucial role in practice to facilitate the knowledge transfer process in a positive way.
Originality/value
Similarities in previous research findings are aggregated to examine the intermediate role in detail from a consolidated perspective. This results in the first comprehensive set of critical tasks and skills assigned to the competency dimensions of the universal competency framework, demonstrating which and how many competency dimensions are critical.