Outsourcing Projects Research Articles

Gig Cataloger: Working as an Independent Contractor on an Outsourced Reclassification Project

Gig Cataloger: Working as an Independent Contractor on an Outsourced Reclassification Project

ANALYSIS AND PRIORITIZING RISK MINIMIZING TECHNIQUES OF IT PROJECTS

This article is devoted to the risk analysis of IT projects. The article defines the risks of IT projects, classifies the key risks of IT projects and identifies the main sources of risks of IT projects. The analysis of risks of IT projects at introduction of information management system in realization of projects of the company is also presented. The possibility of risks of IT projects during the implementation of the management information system in the implementation of the company's projects is analyzed. And also the ways of minimization of occurrence of risks of IT projects at introduction of information management system in realization of projects of the company are offered. Under ideal circumstances, in modern organizations, project implementation reduces risks to zero. At the same time, in modern realities, it remains necessary to take into account risks and manage them as part of the organization when implementing projects. Nevertheless, risk minimization is effective for the dynamic growth of an organization or institution when implementing projects. The current trends in information projects in today's competitive world are fundamental and necessary for any project-oriented organization to manage risks in information outsourcing projects in an ideally complex task. Thus, this article examines the main factors that lead to the emergence of risks, based on modern scientific sources from leading researchers in the field of project management, taking into account the peculiarities of developing an optimal risk management system in an organization when implementing projects, as well as the implementation of such a system under various scenarios of projects’ implementation in organizations. A structure aimed at improving the risk management system in organizations during project implementation is also proposed. The study found that prioritization in the consideration of project risks, as well as risk factors, helps to correlate the risk of the project and the risk of the company itself. Prioritizing the response to risk factors and their strength of influence, considering the time, volume and quality of risks are of paramount importance for the dynamic growth of the organization and allow to conduct a matrix analysis of risks, and then propose ways to minimize risk.

Effect of Strategic Outsourcing Approaches on The Performance of Manufacturing Companies Listed at The Nairobi Security Exchange, Kenya

Purpose: This study sought to establish the effect of strategic outsourcing approaches on the performance of manufacturing.Methodology: A descriptive survey design was adopted, informed by the relatively small population of the listed manufacturing and allied companies, which doubled as the target population of the study. A structured and closed- ended questionnaire was used to collect primary data, administered by drop and pick a method. Total of (72) strategic managers drawn from the nine manufacturing firms were involved in the study. Data collected was quantitatively scrutinized based on research objectives and presented in form of tables and charts for interpretation. The data was then be analyzed through descriptive and inferential statistics supported by the statistical package for social sciences (SPSS), version 22. Regression analysis was done to ascertain the effect of strategic outsourcing approaches on performance. The response rate of the study was 92%.Results and conclusion: The findings of the study showed that strategic professional outsourcing, strategic manufacturing outsourcing, strategic business process outsourcing and strategic project outsourcing have a positive relationship with performance of performance of the manufacturing companies listed at the Nairobi Security Exchange. The results of the regression analysis revealed there is a significant positive relationship between the dependent variable and the independent variable. The independent variables reported R-value of .805 indicating that there is a perfect relationship between a dependent variable and independent variables. R square value of 0.647 means that 64.7% of the corresponding variation in performance of manufacturing companies listed at the Nairobi Security Exchange can be explained or predicted by (strategic professional outsourcing, strategic manufacturing outsourcing, strategic business process outsourcing and strategic project outsourcing) which indicated that the model fitted the study data. The results of the regression analysis revealed that there was a significant positive relationship between the dependent variable and independent variable at (β = 0.647), p=0.000 <0.05).Unique contribution to theory, practice and policy: Finally, the study commends that manufacturing companies listed at the Nairobi Security Exchange embrace the various strategic outsourcing approaches as a way to improve their performance. Equally, the study recommends similar studies be carried out in other industries across the country and in abroad to ascertain if the same results can be obtained and generalized.

Customer satisfaction with business services: is agile better?

Agile methods have considerably transformed project management. The purpose of this study is to analyze the impact of agile (as compared to plan-driven) methods on customer satisfaction in the context of knowledge-intensive business services.,This study uses a survey examining the experiences of 361 customers with different outsourced software projects in Switzerland and a regression-based model to test the hypotheses.,The findings show that agile approaches can lead to higher customer satisfaction than plan-driven approaches, but the impact size is not as substantial as expected. The effect does not depend on the number of specification changes.,Managers must be aware that merely switching from a plan driven to an agile approach will not lead to substantial improvement in customer satisfaction. Satisfaction with the process is a more important driver of overall customer satisfaction than satisfaction with the service outcome. Thus, providers of knowledge-intensive services should train their employees in recognizing the importance of the cooperation process.,So far, the positive impact of agile methods is often only based on anecdotal evidence as well as on surveys examining the supplier perspective. This study provides support for the positive impact of agile methods on customer satisfaction, an important response variable from a marketing perspective, which has not been examined before in the context considered here.

Determinants of trust in computer-mediated offshore software-outsourcing collaboration

Vendors and clients collaborate on outsourcing projects through virtual teams. Trust is an important indicator of mutual relationships that lead to successful projects. This study’s objective is to investigate the determinants of trust in different stages of collaboration during offshore software-development outsourcing. Using a case study approach to collect data, we find that reputation, a cognition-based trust factor, influences clients’ trust in vendors in the team-forming stage. Responsible team climate, a knowledge-based trust factor, impacts clients’ trust in vendors in the team-storming and norming stages of software design and development. Structural assurance, an institutional trust factor, encourages vendors’ trust in clients in the same team-storming and norming stages of software design and development. Benefit, a calculative-based trust factor, influences vendors’ trust in clients in the team-performing stage of software delivery and implementation. Our research findings have implications for software-outsourcing collaboration theories and practices and may have implications beyond that sphere, including team building in multiple contexts and environments.

Controlling Technical Debt Remediation in Outsourced Enterprise Systems Maintenance: An Empirical Analysis

ABSTRACT Technical debt refers to maintenance obligations that stem from violations of established standards during the development and subsequent maintenance of enterprise systems. Technical debt remediation is particularly challenging in the outsourcing context due to information asymmetry between client and vendor teams. Control balancing—the periodic adjustments to the control configurations of outsourced projects—has been proposed as a process to help mitigate these information asymmetry challenges. Using data collected from 1,824 real-world projects, we tested to what extent control balancing improves the remediation of technical debt. After controlling for a number of technical and environmental factors, including system size, system lifespan, and contract parameters, we find that control balancing can benefit technical debt remediation, but primarily when processes for migrating technical debt-laden systems to new technological platforms have been identified. We highlight the role of technical debt in influencing the effects of relational flexibility in inter-firm engagements.

Understanding Client-Consultant Collaboration within Information Systems Design: A Case Study

Abstract This study provides an in-depth exploration of how clients and consultants collaborate in an outsourced design project and how this collaboration influenced the emerging design of an IS artifact. Findings show that the project development method (waterfall model) chosen on a macro-level (project delivery model) can cause a ripple effect that influences the client-consultant collaboration on a micro-level (design phase), which in turn, might influence the emerging design of the IS artifact. The findings suggest that the exercised control modes start with a high degree of self-control and reasonable outcome control. However, an increase in outcome control progresses over time if the measured outcome is perceived as poor by the client. Parallelly, the desire for behavioral control becomes more present.

The Evolving Nature of Information Systems Controls in Healthcare Organisations

Information Systems (IS) projects are found to be complex, unpredictable, and prone to time and cost overruns. Perhaps that is why organisations put a strong focus on IS controls during the planning and execution of such projects.IS control literature in the past has focussed on dyadic control relationships during an outsourced IS development project and relatively little is known about such controls during a complex enterprise systems project. Existing studies usually take a static view of IS controls and do not investigate how controls evolve during different phases of the system lifecycle, as well as across projects. This study presents a processual view of IS controls in the enterprise systems lifecycle in a national blood processing organisation. Traditional research in a blood banking context has focussed on optimising the process of blood collection, inventory management, and distribution with relatively limited attention to the implementation of the supporting information systems. This research focusses on the evolution of control based on a study of three enterprise system implementation projects in the case organisation. The study demonstrates that while all five control modes (input, outcome, behaviour, clan, and self-control) are applied across the phases of enterprise systems projects, the nature and extent of control mechanisms changes across the phases of the enterprise system lifecycle. The findings also suggest a teleological evolution of a project’s control portfolio in which the portfolio evolves based on adaptive learning processes from earlier projects. Finally, by exhibiting the influence of institutional and market context, this study also underlines the multi-stakeholder and contextual nature of enterprise systems implementation and associated controls in health service organisations.

Coordinating Project Outsourcing Through Bilateral Contract Negotiations

Problem definition: Project outsourcing has been a pronounced trend in many industries but is also recognized as a major cause for project delays. We study how companies can coordinate outsourced projects with uncertain completion times through bilateral contract negotiations. Academic/practical relevance: Misaligned subcontractor incentives may result in substantial losses to both project clients and subcontractors. Coordinating subcontractors’ efforts through proper contracts is imperative to the success of project outsourcing. Most previous studies on project contracting have not addressed subcontractors’ bargaining powers or the dynamic bargaining process in negotiations. We fill in this gap by studying bilateral bargaining between the client and subcontractors, which better reflects real-world negotiations. Methodology: We model project contract negotiations as a multiunit bilateral bargaining game. We derive the conditions such that bilateral negotiations can achieve system coordination and characterize the equilibrium negotiation outcomes. We then compare the conditions and equilibria under various model settings to study their impact on project contracting. Results: Our study uncovers how the coordination of project outsourcing is impacted by the contract form, bargaining power structure, precedence network topology, payment timing, external opportunities, and negotiation protocols. For single-task projects, the widely used fixed-price (cost-plus) contract can achieve system coordination only when the subcontractor (client) possesses full bargaining power. Cost-sharing and time-based incentive contracts, which perform well for single-task projects, may not be effective for projects with parallel tasks when any subcontractor’s bargaining power is sufficiently high. Projects with serial tasks can be coordinated only under certain extreme bargaining power structures. Delaying payments always exacerbates the incentive misalignment. Managerial implications: Our analysis provides insights and guidelines to companies regarding how to select proper contract forms and payment timing schemes, based on the characteristics of the projects and subcontractors, to ensure the effectiveness of project outsourcing. Our results also highlight the importance of bargaining modeling in project contracting.

The Concept of Modularity in the Context of IS/IT Project Outsourcing

Information systems and information technology (IS/IT) services are often outsourced to external partners for multiple reasons. The outsourcing literature is persistently reporting high failure rates in IS/IT project outsourcing. Literature suggests that the IS/IT project outsourcing is a complex maneuver, but unfortunately, none of the proposed remedies (mitigating actions) have considered addressing the complexity related issue in IS/IT project outsourcing. This paper explores the concept of modularity, as it has been applied in many other fields in order to manage complexity and enhance agility/flexibility. This paper presents a case study conducted at a Belgian organization involved in technology services and is part of a research project consisting of four cases. This study illustrates a systematic approach, how the concept of modularity can be applied in identifying ‘couplings' which may be responsible for increasing complexity to IS/IT project outsourcing. This study is a first attempt to gain insight into this phenomenon.

Co-Diffusion Effects in Software Sourcing Arrangements

This study analyzes the temporal diffusion of software sourcing arrangements by applying innovation diffusion theories. The study tests the co-diffusion effects 1) between onshoring and offshoring and 2) between insourcing and outsourcing. The results from the analysis indicate the existence of one-way complementary co-diffusion effects between on-shoring and offshoring and between outsourcing and in-housing. Positive, significant effects of innovation were found for in-housed, on-shored, and offshored software projects. Furthermore, a negative, significant effect of imitation was found for outsourced software projects. Indications were co-diffusion effects are stronger than diffusion effects.

Revenue sharing for resource reallocation among project activity contractors

Outsourcing project activities to contractors has become more and more popular in recent years, and activity contractors can increase the revenue of a project through cooperation. In this paper we consider cooperation between activity contractors through resource reallocation, and address two main issues. First, we seek to find the optimal scheme for resource reallocation among contractors. To this end, a linear programming model is established, and some properties of the optimal resource reallocation scheme are discussed. Second, we propose several revenue sharing schemes for contractors based on a cooperative game theory framework. Three schemes are introduced and compared: a scheme in the core, the Shapley value, and a proportional revenue sharing scheme. We show that the cooperative game of activity contractors in a general project network does not necessarily have a nonempty core. However, we identify a special class of project network for which the core of the cooperative game of activity contractors always exists and an allocation in the core is proposed based on shadow prices. The managerial insights we obtain in this paper are as follows. (i) Contractors should cooperate. (ii) Resources should not be transferred between contractors with high transferring costs. (iii) Resources are always transferred from contractors on non-critical paths to contractors on critical paths, and on critical paths, resources are always transferred from low efficiency contractors to high efficiency contractors.

Subcontractor Selection Process Through Vendor Bids: A Case of An Outsourcing Service in Construction

Subcontractors handle a large portion of the work in construction projects. The ability of the general contractor to deliver projects on time, within budget and with the expected level of quality are significantly dependent on the performance of subcontractors. Thus, selecting the right subcontractor for the right task is a determining factor for project success. Literature has identified several criteria for subcontractor selection that predominantly includes financial capacity, ability to complete on time and reputation and quality of workmanship. However, as projects are becoming more global and complex, ensuring selection and award through a fair and competitive formal process becomes imperative. Nevertheless, an understanding of a formal process, backing the selection criteria, seems to be lacking; more so in the context of engineering outsourcing services. Vendor bid analysis is one such service, wherein the general contractor packages the bids received from several subcontractors to a team in a different country who evaluate and enable the general contractor to select and award the subcontractors for project tasks. To this end, an exploratory case study was conducted in an outsourcing firm in India that provide services to general contractors in the USA to understand the formal process of subcontractor selection across organizational boundaries along with its inherent risks and challenges. Data was collected through a participatory research approach, supplemented with participant observation and team interviews which were analysed through inductive reasoning and cross-case comparison methods. The findings showed a formalized 5-phase process across the organizational interface that included assess, identify, evaluate, negotiate and optimize phases. Further, delving into the evaluate, negotiate and optimize phases, the nuances in outsourced projects and the firms strategy to overcome them were evident, such as selection criteria and negotiation strategy adopted in the case of a single bidder with high pricing to mitigate probable bid-rigging practices or ensuring constant training to overcome the challenges due to lack of trade and country specific know-how. In addition, through a reflective approach, the value addition services provided to the general contractor aimed to optimize the process and improve project governance. These findings are expected to provide practical implication for firms in similar business and act as a steppingstone to conduct further robust research.

Impact of natural-resource dependence on foreign contracting projects of China: A spatial panel threshold approach.

The proposal of the “Belt and Road” initiative has had a positive and far-reaching impact on the economic and social development of countries and regions along the route and has provided good opportunities and conditions for the development of China’s foreign contracted projects. In the present study, in view of the heterogeneous characteristics and spatial correlation of countries along the Belt and Road, panel data of 46 contracted projects in China along the Belt and Road from 2008 to 2017 were used to empirically study the spatial characteristics of resource heterogeneity and outsourcing projects in the host country from the perspectives of spatial correlation and spatial heterogeneity. The results indicated that China had significant spatial agglomeration effects, natural restraining effects, and spatial spillover effects on the contracting projects along the Belt and Road, and the marginal impact in low-income countries exhibited a “broken line” relationship. Corresponding suggestions were provided for Chinese enterprises contracting projects involving Belt and Road countries. The databases of BRI need to be established, and ensure green investment efficiency.

The influence of PRINCE2 standard on customer satisfaction in information technology outsourcing: an investigation of a mediated moderation model

PurposeThe purpose of this paper is to explore the influence of PRINCE2 (PRoject IN Controlled Environments 2) standard on customer satisfaction jointly with vendor relationship management capability in the information technology outsourcing (ITO) context. This paper further tries to explore the above underlying mechanism by studying the mediating effect of deliverable quality.Design/methodology/approachThis paper develops a mediated moderation model to explain the underlying influence processes of PRINCE2 standard, vendor relationship management capability and deliverable quality on ITO customer satisfaction. By conducting a pair-wise survey of 260 project managers in seven Iranian firms, the model and hypotheses are empirically tested with the partial least squares method.FindingsOur results suggest that firms benefit more in terms of IT costs reduction when they have a higher level of complementary investment in an external standard, especially through an interplay effect of the external standard and internal relational aspect. Firms can make business processes more amenable to outsourcing and facilitate monitoring of vendor performance and effective coordination with vendors. More interestingly, we find that this interactive effect is fully mediated by deliverable quality, which, in turn, directly increases ITO customer satisfaction.Originality/valueThis study adds some new knowledge and provides new views to study ITO customer satisfaction by addressing the importance of PRINCE2 standard. This study further enhances our understanding in terms of the underlying pathway through which the PRINCE2 standard jointly affects customer satisfaction with vendor relationship management capability and deliverable quality. With the effort of explicitly explaining the complex mechanisms, this study helps ITO managers proactively escort outsourcing activities and projects.

How Do Different Forms of Foreign Aid Affect Government Legitimacy? Evidence from an Informational Experiment in Uganda

Local public goods and social services are delivered through a variety of funding and implementing channels in aid-dependent countries. Existing research proposes that international aid to governments undermines government legitimacy and the fiscal contract between citizens and their rulers. We outline how the implications of fiscal contract theory differ depending on whether aid takes the form of donors funding projects through the government, donors funding projects through NGOs, or the government outsourcing project implementation to NGOs. We test these predictions using an informational experiment among N = 2446 Ugandan adults in 18 communities with foreign-funded, NGO-implemented projects. We randomize the amount of information that we provide about these projects. Our results suggest that donor-to-government funding has limited effects on citizens’ opinions about their government. Only bypass aid (i.e., donor aid to NGOs) undermines citizens’ assessments of government performance, while only NGO implementation reduces the willingness of citizens to pay fees to the government or to donate to community funds. Government legitimacy, as measured by individuals’ willingness to comply with government instructions, is very low to begin with and is not influenced by information about different forms of aid.

A novel model for risk management of outsourced construction projects using decision-making methods: a case study

PurposeSelecting a suitable contract to outsource construction projects is an ongoing concern for project managers and organizational directors. This study aims to propose a comprehensive model to manage the risks of outsourced construction project contracts.Design/methodology/approachTo employ the proposed model, firstly, the types of contracts and risks in the organization should be identified, then, to prioritize the contracts, the identified risks are considered as criteria. After receiving the experts' opinions, the best–worst method (BWM) integrated with grey relation analysis (GRA) method was used to prioritize the contracts. BWM and GRA are multi-criteria decision-making methods with different approaches and applications. In the current study, BWM has been employed to calculate the weights of criteria because it has better performance than other methods such as the analytic hierarchy process (AHP). After calculating the weights of criteria, the GRA method has been utilized for ranking the alternatives.FindingsAccording to the results obtained from the case study, the cost plus award fee contract is the most suitable alternative for outsourcing construction projects. The proposed methodology can be practically applied through different types of the projects such as construction or “engineering, procurement and construction”.Originality/valueTo the best of our knowledge, this is the first time a conceptual model has been proposed to select an appropriate contract for construction projects. Also, for the first time, the BWM integrated with GRA method has been used to prioritize project contracts based on the potential risks. The proposed model can contribute to project managers for selecting a suitable contract with the least risk in construction projects.

Providing Optimal Decision-Making Function for Efficient Selection of A Contractor Using PSO Algorithm in MAPNA

Careful decision-making to select contractors to manage a project is one of the most important factors in the success and efficiency of a project. It is such that extracting a decision function from the set of factors influencing the selection of contractors can play an important role in improving project performance; therefore, providing a decision function is the main goal of this research. In this paper, the decision model is estimated in the form of linear and exponential equations using the Particle Swarm Optimization Algorithm (PSO) technique. The superior function is selected through the selection of the best estimation model based on the selection criteria of the competing function. Then, it is attempted to predict the values of the decision function. In this paper, for the optimal decision making function, a function of contractors' technical capability, contractors' behavioral capability, company capacity and facilities and project outsourcing goals are considered. The research results show that the linear function explains the efficient selection of a contractor with higher accuracy. The optimal decision-making function shows that MAPNA managers place more emphasis on MAPNA's resources, facilities, and capabilities to efficiently select a contractor. It can also be predicted that in future selections, managers will focus on the ability of MAPNA to cooperate with the contractor, and based on this, MAPNA group subsidiaries will be given priority in the selection.

Requirements engineering issues causing software development outsourcing failure.

Software development outsourcing is becoming more and more famous because of the advantages like cost abatement, process enhancement, and coping with the scarcity of needed resources. Studies confirm that unfortunately a large proportion of the software development outsourcing projects fails to realize anticipated benefits. Investigations into the failures of such projects divulge that in several cases software development outsourcing projects are failed because of the issues that are associated with requirements engineering process. The objective of this study is the identification and the ranking of the commonly occurring issues of the requirements engineering process in the case of software development outsourcing. For this purpose, contemporary literature has been assessed rigorously, issues faced by practitioners have been identified and three questionnaire surveys have been organized by involving experienced software development outsourcing practitioners. The Delphi technique, cut-off value method and 50% rule have also been employed. The study explores 150 issues (129 issues from literature and 21 from industry) of requirements engineering process for software development outsourcing, groups the 150 issues into 7 identified categories and then extricates 43 customarily or commonly arising issues from the 150 issues. Founded on 'frequency of occurrence' the 43 customarily arising issues have been ranked with respect to respective categories (category-wise ranking) and with respect to all the categories (overall ranking). Categories of the customarily arising issues have also been ranked. The issues' identification and ranking contribute to design proactive software project management plan for dealing with software development outsourcing failures and attaining conjectured benefits of the software development outsourcing.

A Contingent Approach to Facilitating Conflict Resolution in Software Development Outsourcing Projects

With the wide spread of IT outsourcing, internal IT personnel have been required to change their roles from system development to organizational change agents such as securing software development outsourcing (SDO) success. Conflict resolution is critical to secure the SDO success, but the understanding of how IT personnel facilitate conflict resolution as change agents is limited. The purpose of this study is to understand the negative impact of conflicts on SDO outcomes and to investigate the moderating effect of IT personnel's conflict resolution facilitation (process facilitation, content facilitation) between conflicts and two SDO outcome dimensions (project efficiency and system effectiveness). In order to test the model, data was collected through a cross-sectional field survey using questionnaires, and a total of 144 SDO projects were used in the final analysis. Research results show that conflicts have a negative impact on both of the SDO outcome dimensions, and the effect of conflict resolution facilitation by IT personnel is contingent on the dimensions of SDO outcomes.