Information Systems Offshoring Research Articles

Knowledge transfer in IS offshoring: a Delphi study of the offshore coordinator role

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.

Getting the control across: Control transmission in information systems offshoring projects

AbstractOffshoring of information systems (IS) projects has become a widespread global practice. While prior research suggests that controlling, and communicating with, offshore vendors represent key managerial challenges, the topic of how control is communicated, or transmitted, from client to vendor has been widely neglected. Our study focuses on control transmission in the critical relationship between client and offshore vendor managers, and its impact on the performance of IS offshoring projects. Drawing on a matched‐pair survey with 172 client and vendor managers from 86 projects, our results provide several new insights to the IS literature: First, we find that both behaviour and outcome control have the capacity to be transmitted consistently in lateral IS offshore project relationships. Second, our results show that consistent transmission translates into a performance effect only for outcome control. Third, we find that high‐performing offshore projects are characterized by both greater control transmission consistency and greater use of outcome control compared to low‐performing projects. In sum, our study extends theory on IS project control by highlighting that effective control of IS offshoring projects is not only about selecting proper controls but also about ensuring that, as a controller, you get the control across to the controllee.

Information systems offshore outsourcing: managerial conclusions from academic research

In the light of the growing interest raised by Information Systems Offshore Outsourcing both in the managerial world and in the academic arena, the present work carries out a revision of the research in this area. We have analysed 89 research articles on this topic published in 17 prestigious journals. The analysis deals with aspects such as research methodologies, level of analysis in the studies, data perspective, economic theories used or location of vendors and clients of these services; and it additionally identifies the most frequent topics in this field as well as the most prolific authors and countries. Although other reviews about the research in this area have been published, the present paper achieves a greater level of detail than previous works. The review of the literature in the area could have interesting implications not only for academics but also for business practice.

Offshore outsourcing in large companies: Motivations and risks perceived

When companies opt for information systems (IS) outsourcing, within the set of contracted services, they can contract their entire service needs to onshore suppliers or to offshore companies, or part of these services can be contracted to onshore suppliers and the other part to offshore suppliers. The offshore outsourcing reveals itself nowadays as an important strategic option to IS management optimization. This paper presents and discusses the main results of a survey that was carried out in Portugal to determine several aspects of offshore practice in large companies. It allowed the identification of the services more frequently contracted, the most common motivations for choosing offshore suppliers and the main risks perceived by companies. This research contributes to a better understanding of the IS offshore market, enabling client companies and vendors to improve their strategic business action. Key words: Outsourcing, offshore, information systems, Portugal.

Information Systems Offshore Outsourcing: An Exploratory Study of Motivations and Risks in Large Spanish Firms

Information systems offshore outsourcing is motivated by such factors as globalization, technological development and the possibility to explore new markets. However, both the geographical and the cultural distance create more risks than in onshore outsourcing. The aim of this article is to develop a typology of firms based on the specific motivations and risks associated with offshore outsourcing in large Spanish firms.

Information Systems Offshoring—A Literature Review and Analysis

IS offshoring has become one of the most discussed phenomena in IS research and practice. Particularly due to its rapid evolvement, current research on IS offshoring lacks a consolidated view on existing results. The article at hand seeks to meet this need by systematically reviewing and analyzing prior academic literature on IS offshoring. Based on a review of top-ranked IS and management journals as well as IS conference proceedings, we compile an exhaustive bibliography of ninety-six publications solely focusing on IS offshoring from a (project) management perspective. To adequately address the immense diversity of these publications, a multi-perspective research framework consisting of three perspectives, namely, research focus, research approach, and reference theory, is introduced and forms the basis for our literature analysis. The analysis results confirm the appropriateness of our framework and reveal directions for future research along the framework perspectives: Most importantly, in an effort to increase the significance and the trustworthiness of their results, researchers should apply a more theory-driven approach and provide a better description of their research context. Moreover, future research needs to pay particular attention to the pre-implementation stages of an IS offshoring initiative as well as the special nature of nearshoring and captive offshoring. Across all project stages, researchers should not only concentrate on the client point of view but incorporate multiple points of view.

The Evolution of Risk in Information Systems Offshoring: The Impact of Home Country Risk, Firm Learning, and Competitive Dynamics

Information systems offshoring has emerged as a significant force in the global political economy, an important source of firm-specific competitive advantage, and a focal point for debates over the benefits and costs of globalization. As worldwide competition exerts increasing pressure on the IS function of firms to become geographically unbundled, and IS services are dispersed among increasingly distant and unfamiliar locations, the issue of emerges as a significant factor in decisions about where to locate offshore facilities. Drawing from prior research in IS outsourcing/offshoring and theoretical perspectives from international strategy and multinational management, we examine the determinants of firms bear in their offshoring decisions. In particular, the current paper explores firm-level and environment-level push factors that drive firms to accept increasingly greater degrees of host country risk. We predict that firm-level outcomes for locating IS offshore facilities will be influenced by prior firm-specific experience, the relative between home and host country levels, and the overall movement by IS offshore services providers toward increasingly riskier locations. We test these hypotheses on a proprietary data set of more than 850 information technology and software offshoring projects in 55 host countries worldwide during the period 2000 through 2005. We find that firm-specific experience and the core risk gap between home and host country are predictive of companies pursuing progressively riskier locations, but that their effects dissipate as environment-wide experience is incorporated into our model. Our analysis suggests that broader dynamics in the competitive environment are powerful contributors to the overall observation that IS offshoring is moving to increasingly high-risk locations. This trend has implications for the management, security, and global integration of information systems. Our study contributes to the literature on and IS offshoring in providing the first worldwide empirical examination of the determinants of actual firm IS offshoring behavior with respect to offshoring location risk.

Cross-Cultural (mis)Communication in IS Offshoring: Understanding through Conversation Analysis

The offshoring of information systems (IS) work has seen phenomenal growth in the past 5 or more years. This has resulted in IS professionals, interacting with workers from vastly different cultural backgrounds, in order to deliver IS project and support services. This cultural ‘barrier’ has been highlighted in the IS literature as a key challenge for offshoring; however, the attention given to research in the field has in the main been restricted to surveys or interviews, often reliant on reductionist national culture models. Within the fields of linguistics and anthropology, the ethnographic research technique of conversation analysis (CA) has been successfully applied to cross-cultural communications. However, there have been no concerted research efforts to apply CA to IS research in general and to IS offshoring in particular. Our research aims to address that gap by analysing naturally occurring recordings of telephone conferences between offshore vendor staff in India and UK/US employees of a major pharmaceutical company. The research has identified and analysed two important phenomena observed within these communications. Firstly, evidence of asymmetries of participation across cultural divides has been documented, and analysed for underlying causes, such as different attitudes to hierarchy and a lack of shared understanding of expected responses. Secondly, differences in the rhetorical organisation of conversation by participants have also been observed and clearly documented within transcribed specimens of these conversations. These phenomena led to seven findings that are aimed to stimulate further research. Finally, and perhaps most importantly, this paper demonstrates how the methodological approach of CA can be applied to IS offshoring research, producing key insights into culturally loaded conversations with clear applications for practice. We hope that this evidence of the potential of CA in IS research will inspire IS researchers to use the approach in other domains as well as in further work in offshoring situations.

Business-Related Determinants of Offshoring Intensity

Some researchers view information systems (IS) offshoring as extension of onshore IS outsourcing. However, others have the opinion that IS offshoring has its unique characteristics because of which, we cannot extend research made in onshore IS outsourcing without testing its applicability to the offshore context. This tension motivates our research to examine whether determinants of IS offshoring are indeed the same as determinants of onshore IS outsourcing? We examine the role of some firm level determinants of offshoring intensity. The four business related determinants that we analyze in this study are: business size, business cost, business financial leverage, and business performance. Results indicate a significant relationship between business size and offshoring intensity, and also between business financial leverage and offshoring intensity. Based on the results, we analyze similarities and differences between traditional onshore IS outsourcing and IS offshoring. Implications and contributions arising out of this study are also discussed.

Information Systems Offshoring: Differing Perspectives of the Value Statement

Outsourcing is predicted to become a $220 billion industry by 2010 [19]; IT outsourcing represents 28% of the 2003 market [16] and there is no good reason to think it will decline. This trend impacts current employees and potential employees alike. However, there may be fundamental differences in how these two groups perceive the issues around outsourcing. A survey was created to help identify the differences in the perceived benefits between students and various trade groups with regard to the practice of Information Systems offshoring. The study starts by examining the idea that support for offshoring is caused by an overall value to the consumer, even if indirect. We then use the role of social responsibility in offshoring, to drive a survey of freshmen level business students, as well as information technology employees in the United States and abroad. The results show a difference between the two groups on half of the topics with the general finding that students are more acceptable of the practice of outsourcing.