Outsourcing Sector Research Articles

Advancing interests through informal voice: a study of professional workers in Sri Lanka's knowledge outsourcing sector

Drawing on a rhetorical approach, this article examines how early career professional workers challenge ‘ideal worker expectations’ through informal voice. Informal ‘voice’ is shown as a powerful way of advancing workers' interests, leading to incremental changes that improve their conditions of work. Striking are the power dynamics underpinning informal voice. Highlighting how ideal worker expectations are continuously legitimised and de‐legitimised as employees and their managers rhetorically engage with each other, ideal worker expectations are theorised as a process while illuminating a pluralistic, contextualised view of organisational culture shaped by the past, present and anticipated future.

Generation Y-Turnover: A Complementary Fit Perspective

Generation Y becomes the main pillar of workforce around the world. This generation enters the workplace with different values and characteristics from their counterparts of other generational workforces. In Malaysia, generation Y employees are well known of their high job mobility. Human resource managers are in dilemma of how to retain this new workforce? This paper serves the purpose to respond to such queries by investigating the factors contributing to Generation Y employees’ Turnover from a complementary fit perspective. This study was conducted in Malaysian Business Process Outsourcing Sector (PBO). The total sample was comprised of 318 respondents belong to generation Y employees. The data was analysed in Amos using two steps approach. Extrinsic, freedom and demand abilities fit were the predictors of Generation Y employees’ intention to quit in Malaysian BPO sector.Using cross sectional method limits our understanding to whether the predictors of turnover intention were due to career effects or generational effects. This study provides empirical evidences to Malaysian HR Managers to what makes generation Y employees leave the organization. This is a better surrogate of the existed anecdotal information. Furthermore, this study informs HR Managers that stereotyping the findings from Western context may be treated with caution.

Generation Y-Turnover: A Complementary Fit Perspective

Generation Y becomes the main pillar of workforce around the world. This generation enters the workplace with different values and characteristics from their counterparts of other generational workforces. In Malaysia, generation Y employees are well known of their high job mobility. Human resource managers are in dilemma of how to retain this new workforce? This paper serves the purpose to respond to such queries by investigating the factors contributing to Generation Y employees’ Turnover from a complementary fit perspective. This study was conducted in Malaysian Business Process Outsourcing Sector (PBO). The total sample was comprised of 318 respondents belong to generation Y employees. The data was analysed in Amos using two steps approach. Extrinsic, freedom and demand abilities fit were the predictors of Generation Y employees’ intention to quit in Malaysian BPO sector.Using cross sectional method limits our understanding to whether the predictors of turnover intention were due to career effects or generational effects. This study provides empirical evidences to Malaysian HR Managers to what makes generation Y employees leave the organization. This is a better surrogate of the existed anecdotal information. Furthermore, this study informs HR Managers that stereotyping the findings from Western context may be treated with caution.

Human resource management (HRM) outsourcing in the Asian public sector – a probe into the achievability and consequences in Hong Kong, Malaysia, and Thailand

ABSTRACTUnder the ideology of ‘small government, big individual’, outsourcing of public service functions is gaining momentum, particularly when it comes to certain professional areas such as human resource management (HRM). Upper tiers of the public service and managerial functions have largely been immune to outsourcing. The present studies on outsourcing are extensive, but are largely western-centric, and qualitative or quantitative in nature. This study combines qualitative and quantitative techniques, making use of survey questionnaires to explore the perceptions of bureaucrats and contractors towards public sector outsourcing against an Asian context comprising Hong Kong, Malaysia, and Thailand. The results suggest that the political contexts of the jurisdictions shaped certain perceptions of the respondents. However, for other attributes such as the reasons for outsourcing public services and the constraints facing them, the respondents generally shared typical stereotypes of contractors and bureaucrats.

Factors Affecting Generation Y Employees’ Intention to Quit in Malaysian’s Business Process Outsourcing Sector

<p>This paper investigates the factors contributing to Generation Y employees’ intention to quit in the business process outsourcing sector (BPO) in Malaysia from four different perspectives: personnel dimensions (work overload, role ambiguity and job stress), job attitudes (satisfaction with pay and organizational commitment), work-life conflict and organizational strategies (training, career planning and empowerment). A structural equation modelling approach was employed to identify the variables that significantly affect the intention to quit. Using Amos 18, data collected from 164 Generation Y employees in the BPO sector were used to test the hypotheses. The results showed that intention to quit one’s job is explained by lack of training, lack of empowerment, organizational commitment, and lack of career planning. Also, role ambiguity and satisfaction with pay exert negative indirect effects on the intention to quit one’s job through organizational commitment. Additionally, job stress has no impact on the intention to quit one’s job. This study is considered to be among the few attempts to address the reasons behind Generation Y employees' intention to quit.</p>

The Domestic Turn: Business Process Outsourcing and the Growing Automation of Kenyan Organisations

ABSTRACTAfter observing the growth of the Indian and Filipino Business Process Outsourcing (BPO) sectors, Kenyan policy-makers and managers made substantial investments in international internet infrastructure and BPO marketing campaigns. While observers continue to discuss the sector in terms of its international work opportunities, in recent years the sector has increasingly focused on contracts sourced from Kenyan and other East African clients. The government has also refocused efforts on attracting international BPO companies. This domestic turn signals both the difficulties of gaining access to overseas work due to the power of incumbents and the increasing use of the internet and ICT-enabled automation within Kenyan organisations. In effect, better connectivity has enabled a two-way globalisation of services: Kenyan BPO companies can access international work opportunities but connectivity has also contributed to the inflow of international business practices into Kenya. The conclusion examines what these shifts might entail for the sector and its workers in future.

The ties that bind us: examining relationship marketing orientation and its impact on firm performance in the information systems outsourcing services sector

The objective of this study is to analyze the adoption of a relationship marketing orientation (RMO) by firms in the information systems (IS) outsourcing service sector. The study frames RMO as a hierarchical, reflective construct which models seven dimensions including bonding, communication, empathy, harmonious conflict resolution, shared value, trust, and reciprocity. A sample of 114 senior executives from firms in the IS outsourcing industry in Hong Kong were obtained from a survey. Empirical analysis via structural equation modeling confirms the hierarchical, seven construct reflective structure of the RMO model, and the high levels of a firms’ RMO lead to a direct positive impact on firm performance outcomes. The findings provide valuable managerial insights for measuring and managing an RMO in the IS outsourcing sector, and professional services generally. Both theoretical and practical implications are discussed along with future research directions of the study.

Challenges of control in functional organization structures:Example of outsourcing sector

IntroductionOutsourcing sector is dynamically developing in Poland. The growth of investments in outsourcing sector has become significant with the entrance of Poland the European Union. Nowadays, average increase of employment in this sector in Poland reaches 20% year over year. Poland is a leader in modem business services sector in Eastern and Central Europe [www 1]. As the international business services are still relatively new and the phenomenon in Poland remains not fully explored, the literature and research related this type of operational restructuring are not extensive. The author is trying assess challenges of internal control in international outsourcing companies during restructuring phase. Usually, the companies apply functional organization structure [Kroon 2004, p. 223] with managers located abroad or employees working remotely. There are many factors related control, starting by the change of organization structure that should be taken under consideration in the decision processes.The literature treats widely the aspects of challenges related implementation of outsourcing strategies. Many authors underline the need of control and its importance in implementation of outsourcing. Possible risks are described on general level as potential cons of outsourcing. The studies on how adapt the control systems new reality and what experiences related control managers may have in transforming businesses are missing and have been identified as a research problem by the author. The goal of the paper is show the challenges the company may face in the area of control while taking a decision of outsourcing selected part of the business. This kind of operational restructuring entails significant changes in the organizational structure of the company. The author refers functional organization structure which is most commonly applied. The aspect of globalization has been taken into consideration as well.The article consists of three chapters and conclusions section. The first chapter presents review of literature in the field of outsourcing and control. This chapter presents control as a key management function with focus on control in outsourcing and describes the transformations in organizational structures of the company while applying outsourcing strategy. The next chapter describes the research methodology and phases of studies conducted. The third chapter relates research findings and summarizes the challenges a company may face while taking decision outsource selected activities with distinction of outsourcing external partner and creation of shared service center within a capital group.1.Literature review1.1. Control as a key management functionThe research concept is based on literature studies as well as empirical analysis of selected companies from business service centers sector. The term control has broad meaning and is one of the most important ones in the management sciences. In its results, a company can see its past and rough the future out [Kuc 2009, p. 18]. Cambridge dictionary presents verb control as to order, limit or rule something, or someone's actions or behavior [www 2]. The word control, coming from British and French tradition, was primarily used assess legislation pieces. Currently, internal control is a key element of any organization [Wojciechowska 2015]. There are multiple definitions, but interpretation of Koontz and O'Donnell is valid despite the time, the object and the subject of control. According the authors the process of control consists of three steps:- set up norms,- compare results norms,- correct deviations.To ensure efficiency of control, it is crucial correct deviations timely and apply appropriate tools avoid these deviations in the future [Fayol 1926, p. 6]. Nowadays, many authors (i.e. Webber, Goetz, Kurnal) underline the need of anticipation in the process of control ensure corrections can still be made. …

Data Protection in India and the EU:

India’s surge to become the world's preferred destination for investment in IT and product management services encounters a major legal hurdle. The obstacle is in the area of protection of personal data, where India lacks specific legislation. That legal gap makes data processing in thte country more vulnerable to cyber hacking, theft and related crimes. This article examines the limited protection under the IT Act 2000 and the IT Rules 2011, and provides a brief analysis of the landmark Indian judgments on data protection. Another focal point in the article is the comparison between the Indian experience in data protection and that of the European Union (EU) - a major source of foreign direct investments in India's IT and outsourcing sectors. An analysis of the EU Data Protection Directive and a tabular comparison of the data protection laws in the EU and India highlight the differences between the two regimes.

Hybrid Models as Strategic Opportunity? The Global Challenge of Business Service Providers

This study contributes to research on catch-up strategies of firms in Africa by examining the strategic potential of hybrid business models which balance market profitability with social impact. We investigate the potential of hybrid models in the increasingly important global outsourcing sector for the case of ‘impact sourcing’ - hiring and training of disadvantaged youth for providing business services to global clients. Based on field studies in Kenya and South Africa, we find that while regular outsourcing firms struggle to compete with global peers, impact sourcing service providers have managed to access underutilized labor markets and co- develop a market niche in response to increasing client interest in socially responsible outsourcing. Findings have important implications for research on late-comer economies, hybrid models and the outsourcing sector.

Knowledge Process Outsourcing: A Value Proposition

In this paper an attempt has been made to study how and why the outsourcing have started moving up the value chain. An explicit distinction has been made between Business Process Outsourcing (BPO) and Knowledge Process Outsourcing (KPO). Findings indicate that, after demonstrating its success in information technology, outsourcing has started moving up the knowledge continuum to tasks that involve expertise and judgment, as opposed to routine tasks. The Knowledge Process Outsourcing industry (KPO) is expected to grow 45% in size by 2010. Global KPO pie in 2010 will be around $17 billion of which $12 billion (70%) will be outsourced to India. Therefore, India’s BPO industry will soon be edged out by the emerging Knowledge Processing Outsourcing (KPO) sector and it will prove to be the biggest revenue grosser in future. India is most definitely very well placed to take advantage of this opportunity. But replicating the success of BPO in KPO would be a challenging task since there are different processes involved in each of them. It requires domain expertise and therefore it is important for KPOs to develop expertise in few areas and excel in them, so as to meet varied customer requirements. The challenges faced are manifold but still India can emerge as a major KPO player in the global arena by leveraging the intellectual capital and the power of the Internet to offer quality research at value prices. Although cost effectiveness is key, Best Value principles should dictate the reason for outsourcing. Outsourcing solutions for high-end processes are usually customized and value-based. It will be this customization that will enhance the value proposition of KPO. This study also examines the present state of KPO in India and its desired role in the new economic scenario and in light of these findings, the study suggests imperative factors for the success of KPO.

A managerial application of system dynamics modeling to outsourcing

Purpose – The purpose of this paper is to use modeling and simulation to investigate the puzzling performance problems that plagued the project outsourcing in term of poor quality and delivery delay, and apply the appeal and power of system dynamics modeling as a managerial approach to improve learning and intervention in complex situations to South African context where little or no such attempt had been made. Design/methodology/approach – This work is based on exploratory use of system dynamics modeling to study a web of quality and productivity problems that plagued a company as a result of adopting outsourcing as a policy to bolster productivity and service delivery. Findings – A significant finding from this research is that outsourcing has the propensity to perpetuate any trend it dominantly generates as a result of strong positive feedback loops. It also made explicit the dynamic processes that lead to certain observations that have been made in conventional management literature about the effects of outsourcing. Research limitations/implications – The major limitation to this study is availability of information in form of certain operating data need for calibration thus imposing few aggregations on the model. Originality/value – The authors believe that this work has a degree of originality as it applies system dynamics modeling to public sector outsourcing which not being done before. It also made a significant finding by uncovering possible counteractive effect of outsourcing on internal staff.

Reconciling Dichotomous Demands: Telemarketing Agents in Bangalore and Mumbai, India

Though outsourcing has created enormous employment potential in India’s information technology enabled services/business process outsourcing (ITES/BPO) sector, the implications for employees remain to be understood. The present paper describes employee experiences in telemarketing outbound call centers in Bangalore and Mumbai, India. Following van Manen’s (1998) hermeneutic phenomenological approach, data were collected through unstructured conversational interviews with 18 telemarketing agents identified vi a snowball sampling and were subject to holistic and sententious thematic analyses. Reconciling dichotomous experiences at work was the label used to capture participants’ core experiences and indicated that while participants’ simultaneous positive and negative experiences contributed to a sense of concomitant stress and well-being, they employed various strategies to maintain a balance between positive experiences/well-being and negative experiences/stress.

Contradictory Connectivity: Spatial Imaginaries and Technomediated Positionalities in Kenya's Outsourcing Sector

East Africa has traditionally been characterized by stark barriers to nonproximate communication and flows of information. It was the world's last major region without fibre-optic broadband Internet access, and until the summer of 2009 had been forced to rely on slow and costly satellite connectivity. This all changed when the first of four fibre-optic cables was connected in Kenya: bringing with it the promise of fast and affordable Internet access for the masses, and the ability of the country to move towards a knowledge-based economy. Within the context of this moment of change, this paper explores the ways that managers of outsourcing firms envisage ‘connectivity.’ Over the course of forty-one interviews, contradictory spatial imaginaries were discovered. When describing their perceptions of the country's new technomediated positionalities, many interviewees repeated visions that allowed geographic frictions to evaporate. But when managers were asked about their actual mediated positionalities, they presented a very different world: one of barriers, frictions, and the very real role that distance continues to play in the world's economic peripheries. The goal of this paper is to interrogate why we see such stark disconnects between perceptions and practices of connectivity. The contradictions could be seen as an exposition of a scalar schism between internationally operating regimes of truth (ie, powerful discourses that have their origin nonlocally) and local experiences and practices in Kenya. Alternatively, we can think about the contradictory accounts of connectivity as emergent from strategic spatial essentialisms that are practised to achieve particular goals. By focusing on the contradictions embedded into the ways in which people speak about connectivity in the Kenyan outsourcing sector, we can learn much about how arguments about the entanglement of connectivity, growth, and development are operationalized. ‘Connectivity’ is offered as a necessary, and sometimes even sufficient, condition from which growth and economic development can be brought into being: a set of spatial imaginaries that conveniently support a national development strategy of remaking Kenya in the contemporary knowledge economy.

Komunikacja a dzielenie się wiedzą w projektowych zespołach międzykulturowych

The purpose of this article is to analyse the process of knowledge sharing in a multicultural project team and to present aspects of communication to improve its effectiveness. We have conducted a qualitative research study involving 14 managers from nine international companies operating in the finance, outsourcing and IT sectors. The study was designed to isolate key areas of communication and its impact on knowledge sharing in project teams.

Changes of Economic Globalization Impacts on the Baltic States Business Environments

Abstract In numerous sources of scientific literature it is clearly proved that the process of globalization in regions, countries, industries and even smallest economic subjects is inevitable. However, it is not only inevitable, but also rapidly changing in its forms and impacts. In 2012 the authors of this paper carried out a thorough analysis of economic globalization impact factors on Baltic countries business environments, which revealed high levels of impacts in the fields of: the liberalization of trade; integration of previously non-connected markets and overall productivity growth; the global value chains influence; the increased significance of outsourcing and services sector; the influence of FDI. The research carried out has revealed that the power and scope of globalization impacts in Baltic countries business environments (with the few exceptions) is gradually diminishing. The findings in general correspond with the trends in global markets that the process of globalization is gradually turning into functional regionalization. However, it is important to emphasize, that this new regionalization phenomenon is very different in forms, scope and origins than that of the sixties and seventies. The core conclusion of the research carried out is the following: the economic impacts of globalization process are progressively diminishing, however there are new unforeseen impacts evolving and there will be even more challenges for economic subjects to face in the future trying to stay competitive in volatile business environments.

Capability Management im Geschäftsprozess-Outsourcing

Enterprises operate in rapidly changing environments, which requires the implementation of adaptable solutions in Business Process Outsourcing (BPO) sector. This work introduces a capability manage ...

Right Sourcing in Nebraska: Growing Government or Private Industry?

This study focuses government sourcing decisions in Nebraska, including the benefits and costs of government performance (insourcing) versus contracting with the private sector (outsourcing). The study generally concludes that government insourcing is likely to increase taxpayer costs and produce lower quality outcomes as compared to outsourcing to a competitive private sector provider. It also recommends changes in the assessment and evaluation of government activities to increase transparency and critical evaluation of potential savings from outsourcing whenever the government competes with the private sector.

"Capability Configuration,Ambidexterity and Performance:Evidence from the Service Outsourcing Sector"

How to resolve the dilemma of ambidexterity, or simultaneous alignment and adaption, is a vital issue in the operational field. Based on the resource management model, we argue that capability conf...

Cost–benefit framework for K-12 foodservice outsourcing decisions

There is scarcity of research to investigate not-for-profit sector outsourcing decisions. K-12 school foodservices are not-for-profit operations, and non-core (non-academic) school functions, making them an ideal context to contribute to this literature. We propose a generic framework to investigate K-12 foodservice outsourcing decisions based on the transactional, cost–benefit view of outsourcing. In addition, this paper lays out an agenda for future research.