Match!

Risks factors associated with offshore IT outsourcing

Published on Jun 1, 2005in Industrial Management and Data Systems3.727
· DOI :10.1108/02635570510599940
Mohammed H.A. Tafti5
Estimated H-index: 5
(Hofstra University)
Abstract
Purpose – To provide a framework for risk assessment of offshore IT outsourcing.Design/methodology/approach – Based on review of recent literature, this paper has identified major risk categories of offshore IT outsourcing, discussed various risk factors within each category, and provided a general framework for the study of risk factors in this area.Findings – Provides a general framework and a check‐list of the major risk factors related to offshore IT outsourcing.Research limitations/implications – Suggests further research studies in three specific directions: case‐based studies; country and region risk analysis; and strategic alliance.Practical implications – Provides a very helpful guideline for practitioners in assessing various risks involved in offshore IT outsourcing.Originality/value – The paper provides a synthesis and analysis of the viewpoints as reflected in the literature on various dimensions of the risks associated with offshore IT outsourcing.
  • References (24)
  • Citations (133)
📖 Papers frequently viewed together
193 Citations
1,130 Citations
599 Citations
78% of Scinapse members use related papers. After signing in, all features are FREE.
References24
Newest
#1J. Barhtelemy (ESSEC Business School)H-Index: 10
#2Dominique GeyerH-Index: 4
An increasingly large number of firms outsource their Information Technology (IT) to outside vendors. Firms that contemplate IT outsourcing have two alternatives: (1) outsource part of their IT activity (i.e., “selective outsourcing”) or (2) outsource their entire IT activity (i.e., “total outsourcing”). It has been repeatedly reported that total IT outsourcing efforts have far lower success rates than selective ones. Using primary data collected both in France and Germany, we investigate the re...
76 Citations
In the past few years, companies have become aware that they can slash costs by offshoring: moving jobs to lower-wage locations. But this practice is just the tip of the iceberg in terms of how globalization can transform industries, according to research by the McKinsey Global Institute (MGI). The institute's yearlong study suggests that by streamlining their production processes and supply chains globally, rather than just nationally or regionally, companies can lower their costs-as we've seen...
99 Citations
#1Shi-Ming Huang (CCU: National Chung Cheng University)H-Index: 19
#2I‐Chu Chang (CCU: National Chung Cheng University)H-Index: 1
Last. Ming‐Tong Lin (CCU: National Chung Cheng University)H-Index: 1
view all 4 authors...
Various figures have stated that ERP (enterprise resource planning) systems have become one of the largest IT investments in recent years. The implementation of ERP system, however, is not an easy task. Previous research reports unusually high failure in ERP projects, sometimes jeopardizing the core operation of the implementing organization. The most famous case is FoxMeyer filed for Chapter 11 bankruptcy protection. Further, ERP systems appear to present unique ongoing risks due to its uniquen...
206 CitationsSource
This paper uses social interaction theory and Tuckman's team development model to report and interpret the findings of a case‐based research into the forming and performance of eight internationally situated virtual project teams operating in the information technology industry. Its objective is to highlight the need to bridge the “gap” between the structural and process orientations of management and virtual team members' situational perceptions and psychological drivers (the “invisibles”). For...
44 CitationsSource
#2Ray J. Tsai (SCSU: St. Cloud State University)H-Index: 5
Abstract Outsourcing has taken on new meaning for the American IT industry. Although most companies have outsourced selected IT projects and functions for many years, the growth in offshore outsourcing has exploded in size as companies have sought lower labor costs and other benefits. This article synthesizes recent published reports to provide an overview of the status of offshore IT outsourcing and some current and projected effects on the American IT industry. [Editor's Note:for discussions o...
112 CitationsSource
Abstract MORE THAN 50 PERCENT OF firms are expected to use IT outsourcing in 2006. the sourcing issue is among the top five agenda items for IT executives, as the amount of such outsourcing grows, its impact on the economies of companies and nations increases and political controversy over the consequent jobs lost to off-shore outsourcing heightens. Thus, outsourcing is, and will likely continue to be, a hot professional and political topic and a major determinant of the future of IT.
47 CitationsSource
#1Robert K. Perrons (University of Cambridge)H-Index: 11
#2Ken Platts (University of Cambridge)H-Index: 34
Some research in the area of make‐buy decisions for new technologies suggests that it is a good idea for a company to pursue a fairly rigorous “make” policy in the early days of a potentially disruptive innovation. Other studies prescribe exactly the opposite, promoting instead a “buy” strategy. Drawing from observations and lessons from the Prisoner's Dilemma, this paper seeks to bridge the gap between these perspectives by suggesting that both strategies are valid, but that they are most succe...
27 CitationsSource
#1Richard Fulford (ECU: Edith Cowan University)H-Index: 4
#2Peter E.D. Love (ECU: Edith Cowan University)H-Index: 70
The much‐heralded provision of enterprise resource planning (ERP) and customer relationship management (CRM) applications via hosting houses has been deemed to have failed. Many investigations have taken place, most of which have analysed the failure from the customer perspective, trying to understand why the end‐user did not endorse the application service provision (ASP) model. This paper examines the ASP value chain and identifies the winners and risk takers within it. The supply side of ASPs...
18 CitationsSource
One of the most important current issues in information technology (IT) and project management (PM) is the current trend toward offshore outsourcing of development projects. However, the benefits associated with outsourcing will not be achievable unless the risks are managed throughout the life cycle of these projects. This article provides a framework of risks associated with outsourced projects, and a process that can be used to develop a matrix of risks and controls appropriate for the projec...
114 CitationsSource
Abstract Global trends indicate that IT spending will increasingly go to offshore solution providers. This article demonstrates the use of a SWOT analysis technique for identifying the strengths, weaknesses, threats, and opportunities associated with a potential IT outsourcing location. The factors assessed include business conditions, physical infrastructure, IT infrastructure, financial institution and government support, and various labor characteristics specific to a region: the state of Ker...
27 CitationsSource
Cited By133
Newest
#2Kalle LyytinenH-Index: 4
Last. Gregory M. RoseH-Index: 16
view all 3 authors...
Source
#1Payam Hanafizadeh (Chalmers University of Technology)H-Index: 18
#1Payam Hanafizadeh (Chalmers University of Technology)
Last. Ahad Zareravasan (Masaryk University)H-Index: 1
view all 2 authors...
During the recent decades, some academic research on the subject of information technology outsourcing (ITO) decision has appeared in different outlets, which may impede the use of such resources and as a result, repetition of research by various researchers is very likely. The purpose of this paper is then to conduct a systematic literature review (SLR) pertaining to research on ITO decision. Then, this review intends to 1) classify ITO decision literature, 2) provide a list of factors affectin...
Source
#1A. E. Kremin (RAS: Russian Academy of Sciences)
The article discusses the main advantages and disadvantages of using and developing IT outsourcing in the Russian Federation. The analysis of its essence and the dynamics of the relevant indicators that characterize the state of the studied sector of the economy. It is also proved its importance for both the private and public sectors of the economy. However, it is noted that the implementation of the main actions to digitalize the business processes of organizations has become an urgent area on...
Source
#1Rocío Poveda-Bautista (Polytechnic University of Valencia)H-Index: 7
#2Jose Antonio Diego-Mas (Polytechnic University of Valencia)H-Index: 9
Last. Diego León-Medina (Polytechnic University of Valencia)H-Index: 1
view all 3 authors...
Complex projects require specific project management (PM) competences development. However, while no complex projects have standards that are recognized to guide their management, complex projects do not have guides to deal with their complexity. To lead complex projects to success, this complexity must be measured quantitatively and, in our opinion, project management complexity assessment should be based on existing PM standards. In this work, the main project complexity assessment approaches ...
1 CitationsSource
#1Payam Hanafizadeh (Allameh Tabataba'i University)H-Index: 18
#2Ahad Zare Ravasan (Allameh Tabataba'i University)H-Index: 11
Purpose A multitude of factors influence the information technology outsourcing (ITO) decision. Organizations must systematically evaluate these factors prior to making the ITO decision. The purpose of this paper is to provide an in-depth analysis toward understanding the critical factors in affecting ITO decision in the context of e-banking services. Design/methodology/approach The effect of technological, organizational, and environmental attributes on e-banking services outsourcing decision w...
6 CitationsSource
#1Joseph Nyameboame (University of Liverpool)H-Index: 1
#2Abubaker Haddud (University of Liverpool)H-Index: 3
Purpose The need for businesses to gain profit through the provision of high-quality services has driven the organizations to outsource business activities and functions that are considered not integral to the core business. The purpose of this paper is to identify key outsourced activities and to explore their influence on the organizational performance of the targeted locally owned oil and gas companies in Ghana. Also, the study explores key benefits and challenges associated with adopting out...
4 CitationsSource
#1Songyue Zheng (Xi'an Jiaotong University)H-Index: 1
#2Qiang Wang (Xi'an Jiaotong University)H-Index: 25
Purpose IT-enabled service offshoring has become a vital and widespread practice for firms seeking to realize various advantages. However, many firms suffer from “hidden costs” (the discrepancies between the expected and actual costs of offshoring), and these firms often find a disappointing outcome from their offshoring decisions. The purpose of this paper is to explore whether and how the adoption of an offshoring strategy can reduce such hidden costs and how this effect can be moderated by co...
3 CitationsSource
#1Yunmo Koo (KU: Korea University)H-Index: 2
#2Jae-Nam Lee (KU: Korea University)H-Index: 25
Last. Jihun Park (KU: Korea University)H-Index: 3
view all 4 authors...
The growing trend of engaging multiple vendors, coupled with the concern over possible loss of knowledge in information technology (IT) outsourcing relationships, compels us to investigate organizational learning in multi-vendor outsourcing from a social relation perspective. Social relation has been conceptualized in terms of how organizational relationships with social entities facilitate and/or inhibit organizational learning. In particular, we examine how two different relational structuress...
4 CitationsSource
Apr 1, 2017 in WI (Web Intelligence)
#1Marius Goldberg (KIT: Karlsruhe Institute of Technology)H-Index: 3
#2Axel Kieninger (KIT: Karlsruhe Institute of Technology)H-Index: 8
Last. Hansjörg Fromm (KIT: Karlsruhe Institute of Technology)H-Index: 5
view all 4 authors...
Abstract IT outsourcing is a strategic option which enables companies to focus on their core competencies. Over time however, many outsourcing arrangements suffer from severe problems. While the design of retained organizations is generally seen as a critical element, there is hardly any empirical evidence on how the choice of the organizational setup is linked to the occurrence of outsourcing management problems later on. In this work, a quantitative study across various outsourcing arrangement...
2 CitationsSource
#1Rajasekhar DavidH-Index: 1
#2Pratyush BanerjeeH-Index: 5
Last. Abhilash PonnamH-Index: 1
view all 3 authors...
Purpose The purpose of this paper is to explore various risks that are associated with recruitment process outsourcing (RPO) strategy in the Indian information technology (IT)/IT-enabled service (ITes) industries. Design/methodology/approach Purposeful intensity sampling was used to select respondents from IT/ITes organizations. Twenty-eight respondents were interviewed through face-to-face semi-structured interviews and telephonic interviews. Each interview lasted for approximately 65 min. All ...
Source