Icons / Logo / Facebook Created with Sketch. Icons / Logo / Google Created with Sketch. Icons / Logo / ORCID Created with Sketch. Branding/Logomark minus Citation Combined Shape Icon/Bookmark-empty Icon/Copy Icon/Collection Icon/Close Copy 7 no author result Created with Sketch. Icon/Back Created with Sketch. Match!

Vendors' perspectives on trust and control in offshore information systems outsourcing

Published on Nov 1, 2008in Information & Management 4.12
· DOI :10.1016/j.im.2008.07.003
Ji-Ye Mao9
Estimated H-index: 9
(RUC: Renmin University of China),
Jae-Nam Lee22
Estimated H-index: 22
(KU: Korea University),
Chun-Ping Deng1
Estimated H-index: 1
(BTBU: Beijing Technology and Business University)
Cite
Abstract
Whereas most discussion of outsourcing has concentrated on the clients' perspective, we investigated the formation of offshore IS vendors' trust in their client and the client's control over the vendor; these were assumed to affect the vendor's performance. Focusing on the Japan-China offshoring context, we conducted a survey of 110 project managers in nine Chinese IS outsourcers. Our findings indicated that trust had a significant effect on project quality but little on cost adherence; the relationship between control and the two vendor performance measures were the opposite of this. Furthermore, information sharing, communication quality, and inter-firm adaptation emerged as three significant contributors to the vendor's trust in the client; goal setting and cultural blending turned out to be significant in influencing the client's control over the vendor. One of the key contributions and implications of our research was that certain offshore client behaviors could shape vendor performance by influencing the vendor's trust in the client and client's control over the vendor, beyond formal contracts. These findings may be useful for both offshore vendors and clients in developing successful IS outsourcing.
  • References (27)
  • Citations (117)
Cite
References27
Newest
Published on Jan 1, 2008in Information & Management 4.12
Hyun-Soo Han4
Estimated H-index: 4
(Hanyang University),
Jae-Nam Lee22
Estimated H-index: 22
(KU: Korea University),
Yun-Weon Seo3
Estimated H-index: 3
We investigated the effect of a firm's resource capabilities and interaction processes on the success of IT outsourcing. Grounded in available literature on outsourcing relationship and process theory as well as a resource-based view of the IT resource capability, a conceptual model was composed to examine the causal structure of capability, process, and relationship in IT outsourcing. We identified the firm's resource capability factors and, based on the premise that relationship intensity shou...
Published on Sep 1, 2007in Journal of Systems and Software 2.56
Muhammad Ali Babar35
Estimated H-index: 35
(UNSW: University of New South Wales),
June M. Verner24
Estimated H-index: 24
(UNSW: University of New South Wales),
Phong Nguyen6
Estimated H-index: 6
(UNSW: University of New South Wales)
Our research objective is to understand software outsourcing practitioners' perceptions of the role of trust in managing client-vendor relationships and the factors that are critical to trust in off-shore software outsourcing relationships. Participants were 12 Vietnamese software development practitioners developing software for Far Eastern, European, and American clients. They identified that cultural understanding, creditability, capabilities, and personal visits are important factors in gain...
Published on Mar 1, 2007in Information & Management 4.12
Rajesh Mirani10
Estimated H-index: 10
(UB: University of Baltimore)
This paper presents two case studies of offshored software tasks. The success of such tasks is critically dependent on managing an inherent interdependence between onshore and offshore teams. In one case study, both teams belong to the vendor organization, while in the other they are affiliated respectively with client and vendor. It is shown that that interdependence is best addressed through procedural coordination, which entails two complementary strategies. The first consists of carefully sp...
Published on May 1, 2006in Information & Software Technology 2.92
Nilay V. Oza9
Estimated H-index: 9
(University of Hertfordshire),
Tracy Hall27
Estimated H-index: 27
(University of Hertfordshire)
+ 1 AuthorsSusan Grey6
Estimated H-index: 6
(University of Hertfordshire)
This paper investigates trust in software outsourcing relationships. The study is based on an empirical investigation of eighteen high maturity software vendor companies based in India. Our analysis of the literature suggests that trust has received a lot of attention in all kinds of business relationships. This includes inter-company relationships, whether cooperative ventures or subcontracting relationships, and relationship among different parts of a single company. However, trust has been re...
Published on Dec 1, 2004in Information Systems Research 2.46
Laurie J. Kirsch17
Estimated H-index: 17
(University of Pittsburgh)
In today's competitive environment, an increasing number of firms are buildingcommon information systems, which will be deployed globally, to support their strategic globalization initiatives. These systems are designed to meet the requirements of a diverse set of stakeholders with different business needs, priorities, and objectives. One managerial tool for addressing and reconciling such differences is control, which encompasses all attempts to motivate individuals to act in a manner that is c...
Published on Mar 1, 2004in Information & Management 4.12
Maria Cristina Lander1
Estimated H-index: 1
(Accenture),
Russell L. Purvis3
Estimated H-index: 3
(College of Business Administration)
+ 1 AuthorsWilliam Leigh4
Estimated H-index: 4
(College of Business Administration)
This article describes the trust-building mechanisms used between top-level managers, project team members, users, and outsourcers over the course of a project offering outsourced information systems development (OISD). Previous studies of trust were used to identify potential trust-building mechanisms for participants in OISD projects over three potential stages of trust building: deterrence-based trust, knowledge-based trust and identification-based trust. A case study approach was then used t...
Published on Jan 1, 2004in Mis Quarterly Executive 2.21
Joseph W. Rottman15
Estimated H-index: 15
,
Mary C. Lacity45
Estimated H-index: 45
Published on Mar 1, 2003in Journal of Information Technology 3.13
Zhonghua Qu1
Estimated H-index: 1
(Imperial College London),
Michael Brocklehurst7
Estimated H-index: 7
(Imperial College London)
Using transaction costs theory this paper argues that transaction costs are almost as significant as production costs when it comes to offshore outsourcing and, moreover, that it is in the field of transaction costs where China has been unable to compete with India in the supply of information technology outsourcing. The paper outlines a framework for analysing transaction costs and uses the framework for pinpointing where China is unable to compete. The paper concludes with a review of the poli...
Published on Apr 1, 2002in Communications of The ACM 5.41
Anandasivam Gopal1
Estimated H-index: 1
(CMU: Carnegie Mellon University),
Tridas Mukhopadhyay34
Estimated H-index: 34
(CMU: Carnegie Mellon University),
Mayuram S. Krishnan32
Estimated H-index: 32
(UM: University of Michigan)
Offshore software development is a new trend in the information technology (IT) outsourcing field, fueled by the globalization of IT and the improvement of telecommunication facilities. Countries such as India, Ireland, and Israel have established a significant presence in this market. In this article, we discuss how software processes affect offshore development projects. We use data from projects in India, and focus on three measures of project performance: effort, elapsed time, and software r...
Published on Mar 1, 1999in Management Information Systems Quarterly 4.37
Allen S. Lee28
Estimated H-index: 28
Benbasat and Zmud offer a diagnosis of "why one tends today to observe a lack of relevance to practice in IS research" and a prescription of guidelines that "the IS academic community might follow to introduce relevance into their research efforts and articles." I will comment, first, on the ramifications of their self-avowed positivist orientation; second, on their model-inuse of what relevant research is (i.e., the instrumental model); and third, on the need for the IS research community to ta...
Cited By117
Newest
Hsin-Lu Chang7
Estimated H-index: 7
(National Chengchi University)
ABSTRACTBecause of the significant market potential in China, many international enterprises are moving their production line to China. Accompanying production offshoring is the shifting of informa...
Published on Jan 1, 2019
Eleni Lioliou5
Estimated H-index: 5
(QMUL: Queen Mary University of London),
Leslie P. Willcocks63
Estimated H-index: 63
(LSE: London School of Economics and Political Science)
As the practice of information technology (IT) outsourcing has been evolving, the research issues concerned with it, and the theories used to explain it, have shifted accordingly (Dibbern et al. 2004; Lacity et al. 2009; Willcocks et al. 2018). In the early stages, research on IT outsourcing was centred on the ‘make-or-buy’ decision. Researchers from economic perspectives supported that outsourcing is a reasonable option when contracting out the IT function is cheaper than developing it in-house...
Yogi Yusuf Wibisono (ITB: Bandung Institute of Technology), Rajesri Govindaraju5
Estimated H-index: 5
(ITB: Bandung Institute of Technology)
+ 1 AuthorsIman Sudirman4
Estimated H-index: 4
(ITB: Bandung Institute of Technology)
Purpose The purpose of this paper is to develop and to empirically test a model that explains how managing differences between an information technology (IT) provider and an overseas client influences partnership quality and ultimately affects the continuity of the relationship. Design/methodology/approach A field survey by distributing questionnaires to Indonesian IT providers was conducted over four months, yielding 78 completed responses. These empirical data were analyzed by the partial leas...
Published on Dec 1, 2018in Journal of Systems and Software 2.56
Dinesh Batra17
Estimated H-index: 17
(College of Business Administration)
Abstract Practically all organizations are developing data warehousing, business intelligence, and analytics (DW/BIA) projects for achieving customer value. A DW/BIA development project may be characterized by both agile and plan-driven aspects. The reported study investigated two research questions: (1) Which factor, agile values or plan-driven aspects, contributes more toward the success of DW/BIA? (2) What are the significant antecedents of agile values and plan-driven aspects? 124 respondent...
Jussi Savolainen2
Estimated H-index: 2
(TUT: Tampere University of Technology),
Arto Saari2
Estimated H-index: 2
(TUT: Tampere University of Technology)
+ 1 AuthorsKalle Kähkönen3
Estimated H-index: 3
(TUT: Tampere University of Technology)
Purpose Design management plays a significant role in value creation in a construction project. Within the last few decades, new design tools such as building information model have been introduced, which supposedly enhance design productivity and quality. However, no such revolution of design quality has emerged. Therefore, more research on how design management affects the quality of construction project is needed. The purpose of this paper is to better understand the connection between design...
Published on Feb 21, 2018
Toan C. Nguyen , Erik Wende3
Estimated H-index: 3
(UZH: University of Zurich),
Gerhard Schwabe17
Estimated H-index: 17
(UZH: University of Zurich)
To successfully start cooperation with suppliers is challenging. This case study analyzes how a Germany-based IT client cooperates with its suppliers. Both the client and its suppliers are SMEs in IT outsourcing sector. The case explores (1) the role of supplier’s willingness in client’s supplier selection decision, (2) motivations of suppliers to join the client’s supplier development programs and (3) what activities are used in ITO sector to develop suppliers. The results show that besides sup...
Published on Feb 1, 2018in IEEE Transactions on Engineering Management 1.87
Zelong Wei10
Estimated H-index: 10
(Xi'an Jiaotong University),
Zhanhe Du (Xi'an Jiaotong University), Yongchuan Bao7
Estimated H-index: 7
(UAH: University of Alabama in Huntsville)
Despite the increased research attention directed to the importance of knowledge protection in collaborative business partnerships, such as IT offshore outsourcing, the extant literature offers conflicting views on whether knowledge protection inhibits project performance. Based on the transaction cost theory and the psychological contract theory, this study investigates how outsourcer knowledge protection affects project performance through partnership quality from the view of the vendors. Hypo...
Published on Nov 1, 2017in International Journal of Project Management 4.69
Otávio Próspero Sanchez1
Estimated H-index: 1
(Escola de Administração de Empresas de São Paulo),
Marco Alexandre Terlizzi3
Estimated H-index: 3
(Escola de Administração de Empresas de São Paulo),
Heverton Roberto Oliveira Cesar de Moraes3
Estimated H-index: 3
(Escola de Administração de Empresas de São Paulo)
Abstract Successful development of Information Systems (IS) Projects has been a source of competitive advantage for many organizations. This paper proposes the Cost and Time Project Management Success – CTPMS, an essential measure in this context because projects must dynamically address cost and time success under an agreed scope. The goal of the paper is to identify the project management practices through which an organization can optimize the CTPMS of IS development projects. Because multipl...
Published on Oct 1, 2017in International Journal of Project Management 4.69
Yan Ning8
Estimated H-index: 8
(SEU: Southeast University)
Abstract Despite an increasing emphasis on combining formal control and trust to improve project performance, it is still empirically not known that how formal control and trust combined could contribute to project success. To bridge this gap in knowledge, this study aims to investigate how combination of formal control and trust would give rise to high project performance through a configurational analysis. A questionnaire-survey of 265 dwelling fit-out projects was undertaken in China. Data we...
Published on Sep 1, 2017 in IDAACS (Intelligent Data Acquisition and Advanced Computing Systems: Technology and Applications)
Gul Afroze (CUI: COMSATS Institute of Information Technology), Rao Aamir Khan1
Estimated H-index: 1
(CUI: COMSATS Institute of Information Technology)
This study aims to explore and identify effective communication practices influencing performance of international development projects in Pakistan and also illustrates important project complexity elements which moderates the relationship between effective communication and project performance. After detailed literature review and conducting 9 expert interviews from project managers, project coordinators and communication coordinators working on international development projects, we identified...