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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.
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.
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.
Research on Shadow IT is facing a conceptual dilemma in cases where previously “covert” systems developed by business entities are integrated in the organizational IT management. These systems become visible, are thus not “in the shadows” anymore, and subsequently do not fit to existing definitions of Shadow IT. Practice shows that some information systems share characteristics of Shadow IT but are created openly in alignment with the IT organization. This paper proposes the term “Business-managed IT” to describe “overt” information systems developed or managed by business entities and distinguishes it from Shadow IT by illustrating case vignettes. Accordingly,our contribution is to suggest a concept and its delineation against other concepts. In this way, IS researchers interested in IT originated from or maintained by business entities can construct theories with a wider scope of application that are at the same time more specific to practical problems. In addition, the terminology allows to value potentially innovative developments by business entities more adequately.
Purpose
With the rise of digitization, IT organizations are challenged to provide efficient service delivery and offer innovative digital solutions while maintaining a constant resource capacity. To address this challenge, some IT organizations have adopted Lean Management (LM). Although LM is a standard production mode in manufacturing, it is less familiar to IT organizations. The purpose of this paper is to identify 12 lessons learned from companies who implemented LM in their IT organization (Lean IT) to free up their IT resource capacity from existing day-to-day operations so they could use it to enable their digitization strategy.
Design/methodology/approach
A case study of two major international companies from different industries. Data were collected from 25 structured interviews.
Findings
The lessons learned provide insights into how these companies implemented Lean IT, the potential outcomes they aimed for, what they did to achieve those outcomes, how they facilitated the implementation of Lean IT, and restrictions they encountered during the implementation.
Research limitations/implications
The findings are based on a limited range of IT organizations.
Practical implications
The lessons learned inform those implementing Lean IT because they explain how companies have implemented Lean IT to facilitate digitization and the benefits and pitfalls they encountered. A comparison of Lean IT and Lean Production shows that LM is transferable to IT organizations if domain specific requirements are respected.
Originality/value
This paper reports the unique experience of companies implementing Lean IT, which can inform other companies in a similar situation.
Incomplete conceptualization of the information technology outsourcing (ITO) literature represents a challenge for navigating extant research and engaging into purposeful academic discourse. We extend the analysis of empirical findings on determinants of ITO decisions, outcomes, and governance. We identify increasing levels of research maturity, analyze effects of 38 new independent variables, highlight contradictory findings, and observe increasing interest in emerging topics such as innovation through ITO and multisourcing.
To prepare their IT landscape for future business challenges, companies are changing their IT sourcing arrangements by using selective sourcing approaches as well as multi-sourcing with more but smaller sourcing contracts. Companies therefore have to reconsider and re-evaluate their IT sourcing setup more frequently. Collecting data from 251 global experts, we empirically tested the effect of service quality, relationship quality, and switching costs on IT sourcing decisions using partial least squares (PLS) analysis. Drawing on previously conducted expert interviews, our model extends previous studies and introduces a decision maker’s sourcing preferences as a not yet examined moderator on IT sourcing decisions. This allows us to investigate the influence of the decision maker’s beliefs on the decision process. We were able to confirm the negative effect of switching costs on a decision in favor of backsourcing, however we could not find significant support for the remaining hypotheses. We further discuss potential reasons for our findings and suggest future research opportunities based on our contribution.