IT Outsourcing Companies Research Articles

Cybersecurity Compliance Frameworks- a pragmatic view with an IT outsourcing company case study

Cybersecurity Compliance Frameworks- a pragmatic view with an IT outsourcing company case study

Performance Analysis and Optimization Proposal Using Balanced Scorecard Framework for IT Outsourcing Company, PT IT Expert System

IT outsourcing companies enable businesses to delegate their IT functions, focusing on core activities, cost efficiency, and access to advanced expertise and technology. The success of these companies hinges on employee performance, influenced by factors like psychological well-being, work environment, and organizational culture. In Indonesia, the IT outsourcing industry is rapidly transforming due to increasing demand for digital solutions and technology experts. Companies strive to provide faster, more efficient services while being flexible and adaptable. The IT services market revenue in Indonesia is expected to grow from $4.89 billion in 2023 to $9.07 billion in 2028, driven by digital transformation, supportive government policies, and increased IT infrastructure investments. PT IT Expert System (PT IES), established in 2010, provides IT services like software development and IT outsourcing. Despite sector growth, PT IES’s financial performance has declined, with monthly revenue dropping from Rp. 220 million to Rp. 140 million, affecting liquidity and leading to debt for paying salaries. This financial strain is partly due to 46% of their IT professionals being idle and a lack of software development projects. The research aims to identify the main causes of PT IES’s business problems, determine an appropriate performance management system framework, and establish suitable Key Performance Indicators (KPIs). The root cause identified is the absence of a performance management system, leading to an ineffective appraisal system and poor decision-making. The Balanced Scorecard framework is recommended for PT IES, translating strategic objectives into measurable processes across four perspectives. This framework streamlines performance evaluation and forecasting. The Balanced Scorecard framework proposal includes 4 perspectives, 9 strategic themes, and 18 strategies with key objectives. These strategies are cascaded into 92 business strategies and objectives with 92 KPIs.

DATA MINING AND BUSINESS INTELLIGENCE IN MANAGING THE BUSINESS PROCESSES OF THE PROJECT OFFICE OF AN OUTSOURCING COMPANY

The article carries out a comprehensive study of the possibilities of applying modern business analytics and intelligent data analysis methods to optimize project management processes in the conditions of an outsourcing IT company. The work justifies the relevance of the problem associated with the avalanche-like growth of data volumes during the implementation of IT projects and the possibilities of innovative technologies for their intellectual analysis to identify hidden patterns. Scientific works of leading experts in project management and informatization have been critically analyzed, but a lack of comprehensive studies regarding data analysis specifically for project offices was noted. To achieve the research goal, a thorough analysis of the essence and possibilities of business analytics and intelligent data analysis was carried out, their role in managing modern organizations was examined in detail, and the scientific advantages of implementation in project offices of outsourcing companies were justified. The study of the practical use of business analytics and intelligent data analysis tools to solve the specific task of searching for new projects in the marketing activities of the IT outsourcing company was conducted. Effective methods of data collection, processing, and analysis concerning clients, market, competitors, communication channels, etc., were thoroughly analyzed. Thus, the article carries out a comprehensive study of the theoretical foundations and applied aspects of using advanced business analytics and intelligent data analysis tools with the aim of improving and optimizing the marketing activities of the modern project office of an outsourcing IT company by making timely well-founded managerial decisions based on deep analysis of available data sets.

Improving the Financial Stability of IT Companies through Social Media Marketing

In the context of the COVID19 pandemic, many companies face the problem of declining financial stability. IT companies are unique in this aspect, because their field of activity is entirely based on digital platforms and does not require direct contact with customers. Besides, social media marketing is becoming increasingly popular. The study of the impact of social media marketing on improving the financial stability of IT companies becomes urgent under the conditions of fierce competition, when it is necessary to ensure high rates of financial stability. The aim of the study is to determine the impact of social media marketing on improving the financial stability of IT companies. The data sample for this study includes the 20 largest IT outsourcing companies in Ukraine in 2020. The study was conducted using linear regression models, which were tested by the least squares method. The impact of social media marketing was introduced into the model through the use of a dummy variable. The results of the study showed that social media marketing has a positive statistically significant impact on Profitability of Cash, Profitability of Cash Outflow, Profitability of Cash Inflow, Profitability of Net Cash Flow. The obtained results can be used to assess the impact of social media marketing on cash flow indicators and financial stability of IT companies. The study opens up new areas for further research, in particular the impact of the established brand of the IT company in social media on its financial stability.

Analysis of the Development of IT Outsourcing Companies in The Era of Cloud Computing--Take Infosys as an Example

With the development of information technology and mobile Internet, especially with the impact of the COVID-19 pandemic, cloud computing, which emphasizes distributed patterns rather than the centralized pattern is gradually known and applied. More and more enterprises have to adopt remote work, which greatly promotes the process of enterprise digital transformation, the digitization is greatly changing the world. The emergence of cloud computing is a huge change in traditional enterprises’ concept and thinking of IT resources. The characteristics of flexibility, innovation, diversity and scale of cloud computing stimulate the innovation vitality of enterprises and promote the development of enterprises. At the same time, the enterprises in the process of digital transformation are faced with various difficulties, therefore, how to choose high quality and efficient enterprise digital transformation method has become an important task for the current enterprise development. This paper takes India’s digital service provider Infosys as an example and analyzes the future development direction of traditional IT outsourcing companies in the current digital environment.

АУТСОРСИНГ ТА ОФШОРИНГ В ГЛОБАЛЬНИХ ЛАНЦЮГАХ СТВОРЕННЯ ВАРТОСТІ

In the profound qualitative transformations taking place in the economic life of the world community, the leading place is occupied by the processes of reforming economic relations of strategic spheres in international production. Therefore, today there is no objection or doubt that the further development of the international economy is largely related to the effectiveness of scientific, technical and innovative activities. Innovations provide at all levels modernization, structural restructuring and improvement of the efficiency of the economy. On the other hand, the company’s ability to timely and adequately respond to changes in the environment caused by many factors, in particular, the conditions of the competitive market system, is determined by the company’s ability to implement and perceive innovations. Given this, the relevance of the chosen topic of research, aimed at the formation of a management mechanism for the creation of knowledge-intensive products, is beyond doubt. As the content of the article shows, the problems of the research are characterized by the scientific novelty of the obtained results. Scientific interest is a thorough analysis and generalization of the main factors that determine the objectivity and the need for the formation of a management mechanism for the creation of the main results of scientific, technical and innovative activities with the justification of its structure. In the work, the main directions of development and promotion of offshoring operations, as well as the use of outsourcing operations to improve the conduct of international production for multinational enterprises. Outsourcing operations are involved in many areas, but the competence of such companies is usually questionable, which has caused international companies to mistrust such operations. The modern market of IT outsourcing companies represents highly qualified services that have received a quota of trust from leading multinational enterprises. The trust quota reduces companies’ fear of receiving services of inadequate quality and arouses interest in involving outsourcing operations in their activities both in the short term and in the long term.

Business Model for Managing of the Small Economic System Such as IT-Outsourcing Company

For any economic system to function successfully we need to have business model. One of the advantages of having a model is that it shows detailed and visual information with its internal connections, qualitative characteristics and quantitative parameters. Modeling the management system of the economic system’s activities is currently one of the most effective systematic ways to describe options for the future and assess the potential consequences of management decisions. This current work demonstrates the construction of a business model for the management system of an IT-outsourcing company as an organizational system in the form of a unity of three subsystems: management, main production subsystem and the socio-cultural subsystem.

Сучасні фактори активізації міжнародного бізнесу в Україні та світі

Introduction. The article is devoted to the issues of the modern factors of international business activation in Ukraine and the world. It has been noted that the last decade is characterized by the intensification of digital technologies and their active influence on the development of international economic activity. It has been confirmed that the most important factors in the intensification of international business are the development of information and communication technologies and the "fintech" technologies. It has been shown that the key carriers of modern digital technologies are the leading multinational corporations, which play a key role in the creation, development and dissemination of innovations. Modern TNCs directly affect new trends in international business, global competitiveness in international markets, as well as the economies of the world's economies. The article defines that in the current conditions of international business development it is becoming increasingly obvious that the interdependence between the activities of modern corporations and key trends in the world economy. Purpose. The main purpose of the article is to highlight the trends in the development of digitalization and informatization processes as the most important factors in the development of modern international business. It is necessary to study the indicators of economic activity of corporations in the sector of information and communication technologies. Results. It has been noted that the products of the ICT sector are used mainly by developed countries and especially by developing countries. The least developed countries and countries with economies in transition are almost not involved in this trade, but since 2017 they have been slowly increasing this trend. It has been confirmed that areas of international business differ significantly depending on the use of digital technologies. The risks and opportunities of digitalization for international companies have been identified. The indicators of the information and communication technologies’ development in Ukraine have been analyzed. The progressive development of the IT ecosystem in Ukraine in such elements as the number of IT outsourcing and product companies, the number of people employed in this industry, the growing market share of Ukrainian IT services and products have been identified. Among the modern world-class digital technologies that successfully transform the business environment within the country are the following: cloud computing, Internet of things, robotics, big data, machine learning, artificial intelligence, 3D printing and blockchain. It has been proved that among the main tasks of modern corporations today is the desire to gain new competitive advantages through the use of information and communication technologies, the full use of the needs of informatization of the world economy. Conclusions. Modern opportunities for TNCs in the information sphere are related to the sphere of the Internet of Things (IoT). IoT creates new opportunities for better business conduct and quality, increased customer satisfaction, consumermanufacturer relationships, and generally increased business activity in the industry The risks of informatization have been identified, namely: the growth of cybercrime; strengthening the technological vulnerability of digital infrastructure; issues of aging of fixed assets and their safe disposal; possible weakening of technological and economic national security of individual countries due to the growth of technological dependence on foreign suppliers. The issues of possible job loss due to the development of the innovative industry and automation of production processes are becoming more relevant.

Мотивация за работа в IT аутсорсинг сектора в България: емпирично проучване

The focus is placed on one of the fastest developing industries in the Bulgarian Economy – outsourcing. The main aim is to analyse the existence, strength and features of the relationship between some specific characteristics of outsourcing management and work satisfaction and motivation through an empirical study conducted in one of the leading IT outsourcing companies in Bulgaria. The main characteristics of outsourcing in Bulgaria are summarised, after which the empirical study and its results are presented in order to draw some specific and some more general conclusions.

Strategic Path Dependence and Transformation: The Impacts of External Positive Feedback

Whereas prior research has focused on why organizations cannot break their strategic path with new strategic options after environmental changes, it remains unclear what kind of new strategic options can/cannot form a new strategic path, and why. By classifying self- reinforcing effects into external positive feedback and internal positive feedback, this comparative case study of two IT outsourcing companies reveal that dominant strategic options that generate the same external positive feedbacks as original ones may lead to strategic path dependence by bringing similar external resources and reactivating original strategic patterns that constrain deliberate actions and enable emergent actions, while dominant strategic options that generate distinct external positive feedbacks from original ones may realize strategic path transformation by bringing new external resources and shaping deliberate actions. This research contributes to the literature by offering new explanations of strategic path dependence and transformation from the perspective of external positive feedback.

Understanding Each Other: Strategies for Accommodation in a Virtual Business Team Project Based in China

The use of accommodation strategies between native and nonnative interlocutors of English in the rapidly increased virtual and global work contexts remains underresearched. Contextualized in a Chinese IT outsourcing company where English is used as a lingua franca, this study focuses on how accommodation strategies are used by both on- and offshore team project members in their virtual meeting exchanges. The article argues that the actual linguistic exchange appears to be scaffolded and facilitated by a series of what the authors call “extratextual accommodation strategies” such as the use of detailed minutes of tasks set and completed, and an agreed meeting format. While “intratextual accommodation strategies,” that is, those relating to specific linguistic behaviors in English in the exchanges are also used by interlocutors to accommodate to each other’s speech; the article argues, therefore, that both extra- and intratextual accommodation strategies appear to work in a symbiotic way to ensure successful exchange in business virtual meeting contexts.

The Challenges of Matrix Organization System in It Outsourcing Industry

Matrix organization is the well-known concept, which is being used in IT outsourcing companies. This research paper attempts to explain why matrix organization is being used in IT outsourcing companies. We examine the advantages and disadvantages of the matrix organization in the IT industry. We use the literature review and narrative view based on the experience and come up with the challenges that exists in the IT outsourcing industries with respect to usage of matrix organization.

Bridging abstraction layers in process mining

While the maturity of process mining algorithms increases and more process mining tools enter the market, process mining projects still face the problem of different levels of abstraction when comparing events with modeled business activities. Current approaches for event log abstraction try to abstract from the events in an automated way that does not capture the required domain knowledge to fit business activities. This can lead to misinterpretation of discovered process models. We developed an approach that aims to abstract an event log to the same abstraction level that is needed by the business. We use domain knowledge extracted from existing process documentation to semi-automatically match events and activities. Our abstraction approach is able to deal with n:m relations between events and activities and also supports concurrency. We evaluated our approach in two case studies with a German IT outsourcing company.

Perceived significance of information security governance to predict the information security service quality in software service industry

Purpose – Information security is a growing concern in society, across businesses and government. As the offshore IT services market continues to grow providing numerous benefits, there are also perceived risks with respect to the quality of information security delivered in the supply chain. This paper aims to examine, as a case, the perceptions of Indian software services provider (service provider) employees with respect to information security governance and its impact on information security service quality that is delivered to customers. Design/methodology/approach – The paper provides a framework built upon the existing dimensions and instruments for total quality management and service quality, suitably modified to reflect the context of information security. SmartPLS, a structural equation modelling technique, has been used to analyse field survey data collected from across various Indian cities and companies. Findings – Significant finding is that information security governance in an IT outsourcing company providing software services has a highly significant impact on the information security service quality, which can be predicted. The paper also establishes that there is a positive relationship collectively between elements of information security governance and information security service quality. Research limitations/implications – Since data used in this study were taken solely from the responses of employees of outsourced service companies in India, it does not show if this translates into service improvements as perceived by the customer. Practical implications – Information security governance should be made an integral part of corporate governance and is an effective strategic technique, if software outsourcing business enterprises want to achieve a competitive edge, provide client satisfaction and create trust. Originality/value – The paper presents empirical data validation of the connection between information security governance and quality of service.

ENHANCING QUALITY OF IT SERVICES DELIVERY USING ENTERPRISE CROWDSOURCING

IT outsourcing companies have adopted global delivery model, where IT services, such as backup management, are supplied out of multiple locations worldwide, based on the skill and cost of IT delivery staff, such as system administrators (SAs) and call center agents. Managing IT services quality requires insights obtained by extracting large volumes of tacit knowledge about processes, products and people, which is in collective possession of experts. Current practices to discovering this distributed and unstructured knowledge are semi-automated. Often they involve manual data collection using spreadsheets and tracking of exerts through e-mail. As such they fail to scale and provide accurate insights on demand, such as IT infrastructure snapshots. We present an enterprise crowdsourcing service that enables harnessing of human knowledge to derive quality insights in IT services. Our approach automates knowledge and knowledge owner discovery, and is based on the concept of distributed questionnaires. Experts can breakdown the knowledge requests into multiple parts and engage their networks to co-create the content. We discuss the effectiveness of our approach for knowledge discovery in the context of large-scale, on-going business activities in IT outsourcing organization, which collectively engaged over 2500 experts globally.

Intercultural Communication Training in IT Outsourcing Companies in India: A Case Study

This study examines the nature, manifestations and causes of communication problems in international outsourcing engagements. Specifically, it explores a case of business process outsourcing (BPO), which is the transfer of a number of business processes, such as payroll, supply chain management, and customer relations to an external supplier. In this case, a company based in the US outsourced its business processes to a company in India. (1) If widespread proficiency in English is the reason for India's predominant position in outsourcing, then why do we hear about communication problems? (2) What are the causes of such problems? (3) In what forms and situations do they manifest? (4) How could technical communication offer solutions to ameliorate or minimize some of these communication problems? Similar cases studied include previous studies of call centers in the Philippines and outsourcing relationships in software companies have identified challenges in those relationships to problems of intercultural communications, such as language use and differences in culture. Three areas of inquiry informed this study. Intercultural communication theories provide frameworks and touch points for assessing the role of culture in communication. Previous studies of outsourcing and offshoring provided definitions of the broad range of arrangements that comprise outsourcing. Although these studies all concluded that communication is a crucial factor in the success of outsourced projects, they offered few details of communication problems, their causes, manifestations, and possible solutions. Accounts of India represent India as a rapidly-growing, dynamic economy with certain typical communication problems. The study was designed as a mixed-methods, single-case study with a mix of quantitative and qualitative methods. Quantitative data were gathered through surveys that helped develop a picture of patterns in areas such as communication problems, preferred methods of communication, and patterns of escalation while qualitative data from 45 personal interviews and one group interview provided insights into the nature and resolution of communication dissonances. The case studied ABC Corporation, a captive Indian company that performed BPO for a major American corporation. Communication problems that arise in the outsourcing relationship include differences in corporate culture and differences in linguistic and rhetorical choices. Issues causing these problems include differences in education and training. Ongoing training in cross-cultural communication is needed at all stages of the outsourcing cycle, with an emphasis on communication skills in the early stages of the process, especially the hiring stage. Technical communication can offer solutions to these problems because our field can help structure suitable training applying theories such as Cross' Theory of centripetal and centrifugal forces, which provide frameworks for assessing and addressing communication problems.

Non-linear Growth: The Road Ahead for Indian IT Outsourcing Companies: The Cognizant Experience: In Conversation with R Chandrasekaran, President and MD, Global Delivery, Cognizant

Non-linear Growth: The Road Ahead for Indian IT Outsourcing Companies: The Cognizant Experience: In Conversation with R Chandrasekaran, President and MD, Global Delivery, Cognizant

Non-linear Growth: The Road Ahead for Indian IT Outsourcing Companies: The Infosys Experience: In Conversation with S Gopalakrishnan, CEO and MD, Infosys Technologies

Non-linear Growth: The Road Ahead for Indian IT Outsourcing Companies: The Infosys Experience: In Conversation with S Gopalakrishnan, CEO and MD, Infosys Technologies