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The impact of cultural differences in offshore outsourcing--Case study results from German---Indian application development projects

Published on Apr 1, 2008in Information Systems Frontiers 2.54
· DOI :10.1007/s10796-008-9068-5
Jessica K. Winkler5
Estimated H-index: 5
(UMA: University of Mannheim),
Jens Dibbern17
Estimated H-index: 17
(UMA: University of Mannheim),
Armin Heinzl21
Estimated H-index: 21
(UMA: University of Mannheim)
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Abstract
Offshore outsourcing to vendors in foreign countries causes unique challenges which need to be understood and managed effectively. This paper explores cultural differences in IS offshoring arrangements involving German client organizations that outsource application development activities to Indian vendors. For this purpose, a research framework is developed based on both theoretical considerations and specific empirical observations from multiple case studies. The goal is to (1) explore the nature of cultural differences in offshore outsourcing arrangements in depth and to (2) analyze the relationship between those cultural differences and offshore outsourcing success. Based on the case findings, implications and practices for the management of offshore development projects are outlined. The results indicate that cultural differences in terms of power distance, IS designer values, and an active versus passive working attitude critically affect several dimensions of relationship quality, thereby influencing offshore outsourcing success. A clear definition of roles and mechanisms, strong leadership, and an active management of culture by adapting to either the client's or the vendor's national culture appeared to be effective ways to manage cultural differences.
  • References (49)
  • Citations (155)
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References49
Newest
Published on Jun 1, 2008in Management Information Systems Quarterly 4.37
Jens Dibbern17
Estimated H-index: 17
(UMA: University of Mannheim),
Jessica K. Winkler5
Estimated H-index: 5
(UMA: University of Mannheim),
Armin Heinzl21
Estimated H-index: 21
(UMA: University of Mannheim)
Gaining economic benefits from substantially lower labor costs has been reported as a major reason for offshoring labor-intensive information systems services to low-wage countries. However, if wage differences are so high, why is there such a high level of variation in the economic success between offshored IS projects? This study argues that offshore outsourcing involves a number of extra costs for the client organization that account for the economic failure of offshore projects. The objectiv...
Published on Oct 1, 2006
Rudy Hirschheim55
Estimated H-index: 55
,
Armin Heinzl21
Estimated H-index: 21
,
Jens Dibbern17
Estimated H-index: 17
Part I: Overview.- Part II: Determinants of the IS Outsourcing Decision.- Part III: Outsourcing Relationship Issues.- Part IV: Experiences and Outcome of IS Outsourcing.- Part V: Vendor View and Individual Level Perspective.- Part VI: Application Service Providing and Business Process Outsourcing.- VII: Offshoring and Global-Outsourcing.
Published on Jun 1, 2006in Informatik Spektrum
Arndt Bode13
Estimated H-index: 13
(TUM: Technische Universität München),
Peter Mertens19
Estimated H-index: 19
(FAU: University of Erlangen-Nuremberg)
Published on Jan 1, 2006
Rajiv Sabherwal3
Estimated H-index: 3
(MU: University of Missouri),
Vivek Choudhury11
Estimated H-index: 11
(UC: University of Cincinnati)
Published on Jan 1, 2006in Mis Quarterly Executive 2.21
Erran Carmel28
Estimated H-index: 28
(AU: American University),
Ritu Agarwal47
Estimated H-index: 47
(UMD: University of Maryland, College Park)
Published on Oct 24, 2005
Robert E. Stake20
Estimated H-index: 20
Part I: Single Cases. Situation and Experience. A Technical View of a Case. The Quintain. The Case-Quintain Dilemma. The Research Questions. The Particular and the General. The Contexts. Making the Individual Case Report. Part II: The Multicase Study. Staffing. Selecting Cases. Activity in Its Situation. Data Gathering across Cases . Triangulation within Cases. Part III: Cross-Case Analysis. Rationale. Reading the Collection. Cross-Case Procedure. Expected Utility of Cases and Ordinariness of Si...
Published on Jan 1, 2005
Erran Carmel28
Estimated H-index: 28
(AU: American University),
Paul Tjia1
Estimated H-index: 1
Preface Part I. The Fundamentals: 1. The offshore landscape 2. Offshore economics and offshore risks 3. Beginning the offshore journey 4. The offshore country menu Part II. Managerial Competency: 5. Offshore strategy 6. Offshore legal issues 7. Managing the offshore transition 8. Overcoming distance and time 9. Dealing with cross-cultural issues Part III. Other Stakeholders: 10. Building software industries in developing nations 11. Marketing of offshore services - the provider perspective 12. O...
Published on Nov 15, 2004in ACM Sigmis Database
Jens Dibbern17
Estimated H-index: 17
(UMA: University of Mannheim),
Tim Goles16
Estimated H-index: 16
(UTSA: University of Texas at San Antonio)
+ 1 AuthorsBandula Jayatilaka6
Estimated H-index: 6
(Binghamton University)
In the last fifteen years, academic research on information systems (IS) outsourcing has evolved rapidly. Indeed the field of outsourcing research has grown so fast that there has been scant opportunity for the research community to take a collective breath, and complete a global assessment of research activities to date. This paper seeks to address this need by exploring and synthesizing the academic literature on IS outsourcing. It offers a roadmap of the IS outsourcing literature, highlightin...
Published on Jun 1, 2004in Information Systems Management 2.04
Madhu T. Rao6
Estimated H-index: 6
(SU: Seattle University)
Abstract Globalization trends, trade liberalization in developing countries, quantum improvements in worldwide telecommunications infrastructures, and cost-cutting pressures have together compelled many companies to examine global opportunities for sourcing some of their IT operations. Such global sourcing, whether it involves insourcing or outsourcing, requires IT project managers to deal with issues unique to operating in heterogeneous international environments. This article examines the infl...
Published on Apr 1, 2004in Communications of The ACM 5.41
Srinivas Krishna1
Estimated H-index: 1
(IIMA: Indian Institute of Management Ahmedabad),
Sundeep Sahay37
Estimated H-index: 37
(University of Oslo),
Geoff Walsham46
Estimated H-index: 46
(University of Cambridge)
Exploring research-derived best practices for effective management of global software teams.
Cited By155
Newest
Lu Lu (University of Adelaide), Gary Gregory12
Estimated H-index: 12
(UNSW: University of New South Wales),
Liem Viet Ngo14
Estimated H-index: 14
(UNSW: University of New South Wales)
Abstract Past research focuses on the location effects in explaining consumers’ responses to service offshoring while the role of service offshoring partners (OSPs)’ characteristics has not yet been addressed. Adapting from information integration and inference theories, this paper develops “service offshoring fit” which is influenced by OSPs’ characteristics and explains the differential responses to service offshoring. Both qualitative and quantitative studies explore the concept of fit and th...
Published on Apr 26, 2019
Sagi Mathew (RMIT International University), Greig Taylor (RMIT International University)
Purpose The purpose of this paper is to explore how cultural differentiation can affect the successful transplantation of lean management and production techniques from the parent country to subsidiary countries in the developing world. In particular, the focus will be on car manufacture in India and the role of hierarchy in Indian society, with reflection on how this seeps into workplace and power relations. Design/methodology/approach Lean production techniques have been hailed as revolutionis...
Published on Jan 1, 2018in IEEE Access 4.10
Joaquín Nicolás10
Estimated H-index: 10
(University of Murcia),
Juan Manuel Carrillo de Gea4
Estimated H-index: 4
(University of Murcia)
+ 2 AuthorsJose A. Alvarez23
Estimated H-index: 23
(University of Murcia)
Requirements engineering (RE) is a critical process in software development which faces important risks when performed in a global software development (GSD) setting. Some of these risks are specific to GSD, while others also appear in co-localized environments but are aggravated in GSD. A systematic literature review (SLR) has been conducted to identify the risks to RE that occur in GSD, along with the safeguards with which to manage these risks. Inspired by a grounded theory approach, risks an...
Published on Aug 25, 2017
Offshore-outsourcing is a popular trend across many markets and industries. There many reasons for which a company can decide to engage in offshore-outsourcing. These reasons will be different for a manufacturing company, and different for a service provider company. Following that logic; the process of offshore outsourcing will bring different challenges within the knowledge transfer stage of that process for a manufacturing plant and different for a financial data vendor company. The quality c...
Dhara Shah3
Estimated H-index: 3
,
Michelle Carmel Barker24
Estimated H-index: 24
The growth of Indian Information Technology (IT) sector has resulted in many Indian IT expatriates conducting projects at international client sites. Yet little is known about the sociocultural communication challenges these expatriates encounter. Adopting a qualitative, interpretive approach, semi-structured interviews were conducted with 47 Indian IT expatriates at client sites in Australia. The cultural validation and sociocultural competencies framework of the Excellence in Cultural Experien...
Published on Jun 15, 2017
Anh Nguyen Duc4
Estimated H-index: 4
(NTNU: Norwegian University of Science and Technology),
Pekka Abrahamsson14
Estimated H-index: 14
(NTNU: Norwegian University of Science and Technology)
Abstract -- Software startups are becoming increasingly popular in software industry as well as other sectors of economy. Startups that lack necessary competences often seek for external resources from outsourcing partners. Little is known how this outsourcing relationship works and whether it makes sense to outsource the technical competence to an external party. This is among the first investigations on the outsourcing relationships in software startups. By conducting exploratory case studies ...
Published on May 1, 2017in Journal of Human Values
Shradha Padhi1
Estimated H-index: 1
,
Sumita Mishra1
Estimated H-index: 1
For successful project outcomes to organizations and clients alike, project managers (PMs) need to make ethical decisions and yet balance the interests of all stakeholders involved. Hence, honest communication among project stakeholders is essential as a countermeasure to this paradox. Honesty is one of the core ethical values propagated by the Project Management Institute (PMI), USA. Our study aimed to gain an endogenous perspective on honesty vis-a-vis its reification by PMI in its effect on s...
Published on Jan 1, 2017
Tobias Bohnenkamp (UT: University of Twente), Holger Schiele20
Estimated H-index: 20
(UT: University of Twente)
Given an increased focus on globalization and the worldwide procurement of goods, firms have to make decisions about which target region to source from. Since regional characteristics can have an impact on short as well as long term success of sourcing performances, purchasers are required to consider carefully whether regions have advantages over others. In this paper, we address regional characteristics that guide sourcing decisions, factors that influence the perception of supply market attra...
Published on Jan 1, 2017in Procedia Computer Science
Joo Varajo2
Estimated H-index: 2
(University of Minho),
Maria Manuela Cruz-Cunha2
Estimated H-index: 2
(Ipca Laboratories Ltd.),
Maria da Glria Fraga1
Estimated H-index: 1
Companies can outsource Information Technologies (IT) /Information Systems (IS) at various scales, from a small percentage of services to the entire range of services that they need. Outsourcing is associated to a set of motivations related to perceived benefits, but it also has inherent risks. This paper discusses the main results of a survey carried out to determine several aspects of outsourcing practice in large companies. It presents the most frequently contracted services (application deve...