The outsourcing enterprise: The power of relationships

Engineering Journal, 2020

Recently, the advancement in business competition is increasing. Outsourcing has become an important strategy in the organizations. Most of the outsourcing objectives are for cost-saving and focusing on the main activities in the organization. To realize the importance of outsourcing, the goal of this research is to explore the key theoretical views that are related to Business Process Outsourcing (BPO) and Information Technology Outsourcing (ITO) relationships which BPO and ITO, which are the same, means that others are responsible for the non-core work but is a different part of the work. Therefore, this research is interesting in terms of seeing the different perspectives of outsourcing. The research articles in the ScienceDirect database from 2000 to 2018 with related domains were collected using related keywords such as BPO, ITO, outsourcing performance, and outsourcing contract duration. After all relative papers were collected, they are categorized into four major topics including (1) Understanding in outsourcing, (2) Related costs in outsourcing, (3) Outsourced long-term relationships, and (4) Internal control systems in outsourced projects. Based on our systematic review, this study summarized the current trends of research in the concerned areas, together with significant findings that can be applied, integrated, or compared with this study.

Proceedings of the 39th Hawaii International Conference on Systems Sciences (HICSS) 2006, 2006

International journal of multidisciplinary and current research, 2016

Outsourcing has become very sophisticated and technology intensive. This is attributed to the demand for enhanced productivity and the maintenance of standards. It cannot be emphasised enough that skilled personnel is a key requirement when conducting outsourcing. This article investigates The Dynamics and Complexity of Outsourcing through the use of secondary method of data collection. The key findings suggest that the increase in outsourcing of core and non-core activities creates business opportunities. The successful management of outsourcing relationships, the adoption of Total Quality Management (TQM) and the skillful compilation of outsourcing contracts are considered to be of paramount importance in attaining successful outsourcing outcomes. Outsourcing creates jobs with minimal remuneration for vendor companies to attain higher profits and job loss of permanent personnel which is a complex issue to address. Union leaders globally have viewed outsourcing as unfavourable for their members. The challenge however lies in identifying suitable formulae to compensate retrenched workers and the compilation of favourable remuneration packages for outsourcing personnel. In conclusion, supply chains open markets globally allowing free trade to take place which consequently results in increased economic growth and development.

Pacis 2012 Proceedings, 2012

Over the last decades outsourcing has established itself as widely accepted management practice. Information systems researchers have spent considerable effort in studying the outsourcing phenomenon and theorizing about it. Through the interaction between research and practice, as well as through own experiences, industry managers underwent a noticeable learning curve. This poses the question: is research still up to date or do we need to think about the next stage, a form of next generation outsourcing?

International Journal of Operations & Production Management, 2005

Purpose -This research aims to assess the risks and benefits of outsourcing for organisations, sectors and nations. The literature on outsourcing contains little evidence of research on holistic issues of its impact at systems levels beyond the firm, notably sectors and nations. Design/methodology/approach -A Delphi study with senior strategists from private and public sectors captured perspectives and specific observations on benefits and risks of outsourcing. Emergent issues on outsourcing policy, strategy and decision-making processes were synthesised into a framework for analysing factors associated with outsourcing. Findings -The findings suggest that a more holistic view of outsourcing is needed, linking local, organisational issues with sector and national level actions and outcomes. In this way, aggregate risks and benefits can be assessed at different systems levels.

2019

With the advent of globalisation and fierce competition, outsourcing is considered as a smart management technique and a strategic initiative, which enables organisations to achieve competitive advantage in today’s market. Accordingly, most of the organisations from both private and public sectors have tended to outsource at least one of their services to outside service providers. Over the years, a number of researchers have discussed themes of outsourcing in different perspectives, and the aim of this paper is to synthesize the existing literature in order to provide a clearer picture of the outsourcing concept. Though outsourcing has been written extensively, as the researchers highlighted, most of the previous studies have focused on two key questions: ‘‘should we outsource?’’ and ‘‘what to outsource?’’. Therefore, this paper goes beyond what is often addressed in literature and discusses different definitions of outsourcing, the notions identified through those definitions, dif...

As the world recovers from the economic slowdown, the outsourcing industry has to adapt via strategic planning and right governance to cater to the changing business requirements and objectives. The authors review the transactional, contractual and relational governance of outsourcing arrangements along with its underlying characteristics, so companies can choose an appropriate governance forms. Authors emphasize the positive effect of relational governance on the outcome of the outsourcing arrangement and illustrate their arguments through a case study. Authors recommend relational governance for desired benefits with flexibility to accommodate changes and mechanisms built in to cope with change. INTRODUCTION As more and more companies are adopting outsourcing, they place their valuable processes and customers in the hands of outsourcing service organizations. For safeguard, the managers often address the legal aspects of outsourcing contracts but pay scant attention to the right governance of processes associated with outsourcing arrangements.

2007 40th Annual Hawaii International Conference on System Sciences (HICSS'07), 2007

The outsourcing market has been growing for decades. Also the impact of IT services on the performance of business processes is still growing. Therefore the need for governance structure in outsourcing relationships is undisputed. Service recipients and service providers have sometimes difficulties to control their outsourcing relationship. This research includes an overview of IT governance frameworks and items. Our research is based on two global IT outsourcing relationships. The governance strategies in these two case studies are

Empirical Software Engineering, 2013

Most large software companies are involved in offshore development, now smalland medium-sized companies are starting to undertake global sourcing too. Empirical research suggests that offshoring is not always successful; however, only a few comprehensive failure stories have been reported. The objective of our study has been to understand why small and medium-sized companies terminate their offshore outsourcing relationships and what alternative arrangements they undertake afterwards. Therefore, we designed a multiple case study of four medium-sized Scandinavian software companies that have terminated their offshore outsourcing relationships. Our results are based on data collected through semi-structured interviews, informal dialogues and analysis of company documents. We found that all companies terminated their offshore contracts because of low quality of the software being developed. This was caused by an inability to build the necessary human and social capital. The companies reported challenges with domain knowledge, a lack of commitment of external developers, cultural clashes, poor communication and high turnover, which only amplified the problems.

Journal of Corporate Accounting & Finance, 2008