Governance in IT Outsourcing Partnerships

Author(s):  
Erik Beulen

The literature first devoted attention to IT outsourcing partnerships in 1990 (Gantz, 1990; Rochester & Douglas, 1990). An IT outsourcing partnership consists of a service recipient and one or more external service providers and the relationship between them. The service recipient hands over the responsibility for the execution of the IT services to the service provider but remains the responsibility for managing the IT outsourcing partnership. The relationship between the service recipient and the service provider is defined in contracts describing the mutual obligations. The contract value of IT outsourcing partnerships is substantial, meaning over 10 million US$ or Euros. These contracts are also long-term contracts. The average duration of contracts is over 36 months (Cox, 2002). This description is based on the work of Lacity and Hirschheim (1993), Willcocks, Fitzgerald and Feeny (1995), and Currie and Willcocks (1998). The IT services outsourcing market is still growing every year, approximately 10% (Cox, 2002). Therefore, it is essential that sufficient attention be devoted to the governance of IT outsourcing partnerships.

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Marwa Ghanem ◽  
Ibrahim Elshaer ◽  
Samar Saad

Purpose This study aims to address the absence of a thorough understanding of commitment in tourism public-private partnerships (PPP) by exploring antecedents of PPP commitment and their underpinning relationships in regard to the destination management system (DMS). Design/methodology/approach An empirical investigation of the case of the Egyptian DMS, a PPP which was forsaken by the government partner and which subsequently failed. Qualitative and quantitative approaches are used for a comprehensive overview of the researched phenomena pertaining to external and internal stakeholders. Findings The results indicated that stakeholder management, relational capital, perceived benefits and stakeholder capabilities could influence intentions to commit to a tourism PPP project. Also, the latter three factors were found to mediate the relationship between stakeholder management and long-term PPP commitment. The results also shed light on the important aspects of non-contractual, interpersonal relationships between internal and external PPP stakeholders. Originality/value This research pioneers inquiries on the commitment of Tourism PPP/DMS projects and its possible drivers in a non-Western context. Also, this study contributes to knowledge by exploring the relationship within and between internal (partners) and external (e.g. local service providers) stakeholder groups and provided evidence on the crucial role of both on long-term PPP commitment and success. The current study has a few significant contributions to the PPP literature regarding the commitment and success of PPP in the complicated environments in which tourism PPP projects are operated. Moreover, this study offers essential information and practices for improving partner relationships with external stakeholders.


Author(s):  
Alexander Herzfeldt ◽  
Sebastian Floerecke ◽  
Christoph Ertl ◽  
Helmut Krcmar

With the increasing maturity of cloud technologies and the growing demand from customers, the cloud computing ecosystem has been expanding continuously with both incumbents and new entrants, whereby it has become more distributed and less transparent. For cloud service providers previously focusing on growth strategies, it is now necessary to shift the attention to providing service efficiently, as well as profitably. Based on 14 explorative interviews with cloud service experts, the relationship between cloud service provider profitability and value facilitation, which stands for the capability to build up resources in advance of future customer engagements, is investigated. The results indicate a positive relationship between cloud service profitability and value facilitation and deliver valuable insights for both researchers and practitioners. In particular, guidelines on how to design profitable cloud service offerings are discussed.


Author(s):  
Patrick Wild

<div>Due to the increasing importance of the tertiary sector, information technology (IT) organizations need to face up to new challenges, since their daily business has changed from development and operation of information technology to the customer oriented provision and management of IT services. In order to survive in the market, service providers need to offer and manage competitive and distinctive IT services. The “Profit Impact of Market Strategies” (PIMS) program has emphasized the need for service quality as being a crucial, strategic competitive factor. However, IT service providers do not have guidance of what quality requirements are supposed to be fulfilled to provide high-quality IT services. Different reference models and frameworks such as ITIL (Information Technology Infrastructure Library), COBIT (Control Objectives for Information and related Technology) and ISO 20000 are widely used by many IT organizations for improving service management processes and performance. However, these reference models do not address the improvement of service quality in a consistent manner and it is not clear whether these models have the capability to close quality gaps which may arise within a service provider environment.</div><div><br></div><div>Therefore, this chapter proposes an IT service quality model for identifying potential quality&nbsp;gaps and quality dimensions in an IT service provider environment. Furthermore, it proposes a set of different quality requirements combined in a “Quality Requirements Model for IT Services” that are needed in order to close the respective quality gaps and fulfill the individual quality dimensions. The model is developed by mapping&nbsp;the reference models ITIL v3, COBIT and ISO 20000 to the previously developed quality model. The results of the mappings emphasize that all three models are partially capable to close the individual gaps of the quality model as well as to guarantee the fulfillment of respective quality dimensions. The fulfillment of these developed quality requirements can be utilized as a guideline for providing and managing high-quality IT services in the long term.</div><div><br></div><div>Finally, the maturity level is analyzed and pointed out that most of the quality requirements are assigned to maturity stage 2 or 3. This implies that an IT service provider does not necessarily have to reach a maturity stage 4 or 5 being able offering high service quality.</div><div><br></div><div>In summary, the chapter provides guidance and quality-oriented IT Service Management to answer the following questions:</div><div><br></div><div><ul><li>What kind of quality gaps exist in a service provider environment?<br></li><li>Do reference models such as ITIL, COBIT and ISO 20000 have the capability to close quality gaps which may arise within a service provider environment?<br></li><li>What processes, activities and functions from which reference model are needed in order to close the respective gaps?<br></li><li>What quality requirements need to be implemented in order to provide high-quality IT services?<br></li><li>What maturity level do service providers need to reach in order to fulfill quality requirements?<br></li></ul></div>


Author(s):  
Alexander Herzfeldt ◽  
Sebastian Floerecke ◽  
Christoph Ertl ◽  
Helmut Krcmar

With the increasing maturity of cloud technologies and the growing demand from customers, the cloud computing ecosystem has been expanding continuously with both incumbents and new entrants, whereby it has become more distributed and less transparent. For cloud service providers previously focusing on growth strategies, it is now necessary to shift the attention to providing service efficiently, as well as profitably. Based on 14 explorative interviews with cloud service experts, the relationship between cloud service provider profitability and value facilitation, which stands for the capability to build up resources in advance of future customer engagements, is investigated. The results indicate a positive relationship between cloud service profitability and value facilitation and deliver valuable insights for both researchers and practitioners. In particular, guidelines on how to design profitable cloud service offerings are discussed.


2011 ◽  
Vol 19 (2) ◽  
pp. 27-44 ◽  
Author(s):  
Nguyen Thu Huong ◽  
Umemoto Katsuhiro ◽  
Dam Hieu Chi

This paper discusses the knowledge transfer process in offshore outsourcing. The focus is a case study of software offshore outsourcing from Japan to Vietnam. Initial results confirm that willingness to cooperate and good impressions facilitate the knowledge transfer process. In addition, communication barriers, cultural differences, lack of equivalence in individual competence, and lack of common rules slow down the transfer process. The study also identifies the Bridge System Engineer (Bridge SE)-a type of coordinator who mediates and enhances the relationship between Japanese clients and Vietnamese service providers. Employing a Bridge SE is an effective way to fill the communication gap, the cultural gap, and generally improve the business relationship. Bridge SEs use their background of higher education and long-term residence in Japan to give advice to Vietnamese software teams on Japanese cultural characteristics, such as the apology culture and the separation between work and private time. In other situations, Bridge SEs use their IT background and communication skills to verify and adjust communication contents before information is sent from one side to another.


Author(s):  
David P. Boyd

In their quest for economic efficiency, American firms are increasingly outsourcing their processes as well as their products. Companies may outsource operations themselves or use the services of special outsource firms such as contract manufacturers and external service providers (ESPs). The present study focuses on evolving dynamics within these intermediaries, particularly their accelerated move to offshore operations. This paper examines the causes and effects of this trend. The first casualties register in the American workforce. Though U.S. firms and consumers enjoy some near-term benefit from this job transfer, long-term implications are ominous. By broadening their geographic locus and hiring local professionals, ESPs unwittingly expedite the emergence of an indigenous labor pool to replace them. Already domestic providers are encountering local ventures that offer value-added technology in upstream areas like architecture, development and integration. If such firms continue to gain recognition in high-end activity, they may credibly lay claim to the commodity work of product assembly and transaction processes. American firms are targeting these same areas, especially the nascent realm of business process outsourcing (BPO). As U.S. outsourcers rush relentlessly downstream and transplant their backend support services to overseas locations, they may be outsourcing their own future. The paper will give three case study examples at each end of this labor food chain. As domestic examples we include a domestic contract manufacturer and a BPO provider. Both firms have established an overseas presence. Lastly, we examine an overseas competitor leveraging its upstream success in high-value IT services to secure a beachhead in BPO.


Author(s):  
Jordan Shropshire ◽  
Christopher Kadlec

Information technology plays a pivotal role in defining the success of organizations. Given its importance, one might assume that modern organizations take steps to ensure the recovery of IT services following disasters. Unfortunately, this is rarely the case. To understand the variation in degree of IT disaster recovery planning, this research focused on those responsible for managing IT resources and IT directors. For the study, a survey was mailed to 337 financial service institutions in the southeastern United States. Over 150 IT directors completed self-assessments for measuring the extent to which their organization engages in IT disaster recovery planning. In addition, they responded to a number of questions regarding their work-related values, and over 63% of the variance in degree of IT disaster recovery planning was explained by two predictors: uncertainty avoidance and long-term orientation. Results show that firms with IT professionals who prefer to avoid uncertainty and who have long-term outlooks have more developed IT disaster recovery plans.


2010 ◽  
pp. 1702-1722
Author(s):  
Leonardo Legorreta ◽  
Rajneesh Goyal

Outsourcing is one of the most talked about and widely debated topics. Over the past few years, firms have been outsourcing their IT operations at increasing rates. The fact that firms are turning to outside vendors in increasing numbers in order to meet their needs does not mean that outsourcing is without problems. Firms often enter outsourcing deals without considering risks or assuming that all risks lay with the external service provider. In this chapter, we provide an overview of IT outsourcing, its risks, and a model for managing those risks. We identify different firm-vendor configurations for sustaining long-term relationships aimed at diversifying risk over time and discuss the need for psychological contracts to manage such outsourcing relationships.


2016 ◽  
Vol 2 (2) ◽  
pp. 176-193 ◽  
Author(s):  
Murthy Chebiyyam ◽  
Vibhava Srivastava ◽  
Vijay Aggarwal ◽  
Narain Gupta

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