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Evaluating Offshore IT Outsourcing in India: Supplier and Customer Scenarios

Published on Jan 6, 2003
Naureen Khan7
Estimated H-index: 7
(Brunel University London),
Wendy L. Currie24
Estimated H-index: 24
+ 1 AuthorsBhavini Desai7
Estimated H-index: 7
Abstract
This paper presents the findings from an ongoing research study on offshore IT outsourcing. Field work was carried out in India and in the UK to evaluate the scale and scope of outsourcing activities. CEOs and CIOs were interviewed in fifteen supplier firms in India and two customer firms in UK, about strategic positioning in the offshore outsourcing market; benefits and risks from outsourcing; and other demand and supply-side issues. The findings suggest that, though offshore outsourcing offers new business opportunities for IT suppliers, much of the outsourced work continues to be low risk and low value. The challenge foroutsourcing suppliers is therefore to devise strategies to move from body-shopping work to low cost, high value contracts, without incurring additional risk.
  • References (19)
  • Citations (62)
References19
Newest
Published on Jul 1, 1992in Journal of Management Information Systems3.01
Lawrence Loh10
Estimated H-index: 10
,
N. Venkatraman42
Estimated H-index: 42
Abstract:This paper develops and tests a model of the determinants of information technology (IT) outsourcing by integrating both business and IT perspectives. Specifically, we attempt to explain the degree of IT outsourcing using business and IT competences as represented by their cost structures and economic performances. In addition, we posit that outsourcing is dependent on business governance, particularly financial leverage. Based on factor analyses and multiple regressions using data from...
Published on Jan 1, 2009
Kuldeep Kumar1
Estimated H-index: 1
,
Leslie P. Willcocks63
Estimated H-index: 63
(LSE: London School of Economics and Political Science)
The Yankee Group estimated the 1994 global IT outsourcing market as exceeding US49.5 billion with an annual 15% growth rate. As at 1995 the US market was the biggest; estimated to exceed S18.2 billion (Patane and Jurison, 1994). Offshore outsourcing formed a very small part of this growing outsourcing phenomenon. Its main appeal up to this date had been in the systems/software development area, and resided in four critical factors: low salaries in foreign countries, access to a larger group o...
Published on Jan 1, 2004
Frances Bell8
Estimated H-index: 8
,
Alison Adam19
Estimated H-index: 19
This paper explores the development of information systems and computer ethics along separate trajectories over the 20 years since the first Manchester Conference, and ponders how things might have been and could be different. Along each trajectory, the challenge of aligning theory and practice has stimulated much research. We evaluate some of this research with respect to this alignment, discuss ethical theories and behavior, and explore the role of education in the development of practitioners...
Published on Apr 1, 2002in Communications of The ACM5.41
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 Jan 1, 2002
Rudy Hirschheim55
Estimated H-index: 55
(LSU: Louisiana State University)
Outsourcing refers to the transferring of internal work to an external provider. In this article, we explore the transferring of IT services externally. In doing so, we consider the motivation for outsourcing, as well as its history, definitions, key concepts, and possible future trends. Keywords: outsourcing; offshoring; microsourcing; rural sourcing; history of outsourcing
Published on Mar 1, 2001in Information Systems Management2.04
T. M. Rajkumar11
Estimated H-index: 11
(Miami University),
R. V. S. Mani1
Estimated H-index: 1
Abstract The literature of information systems outsourcing and offshore development of software mainly considers the customers perspective (U.S. perspective). This article approaches these issues from the perspective of an offshore software supplier and identifies the key success factors in offshore development. It looks at various business models in use, and identifies four different stages of growth of relationships between suppliers and customers. Finally, it outlines the steps to move from o...
Published on Jul 8, 2000in Journal of Management9.06
K. Matthew Gilley14
Estimated H-index: 14
(OSU: Oklahoma State University–Stillwater),
Abdul A. Rasheed34
Estimated H-index: 34
(UTA: University of Texas at Arlington)
This study empirically examined the extent to which outsourcing of both peripheral and near-core tasks influences firms’ financial and nonfinancial performance. In addition, the potential moderating effects of firm strategy and the environment on the outsourcing-performance relationship were examined. Results indicate that, whereas there was no significant direct effect of outsourcing on firm performance, both firm strategy and environmental dynamism moderated the relationship between outsourcin...
Published on Jan 1, 1998
Leslie P. Willcocks63
Estimated H-index: 63
,
Mary C. Lacity45
Estimated H-index: 45
Published on Dec 1, 1997in Journal of Information Technology3.13
Uday M. Apte16
Estimated H-index: 16
(SMU: Southern Methodist University),
Marion G. Sobol11
Estimated H-index: 11
(SMU: Southern Methodist University)
+ 4 AuthorsA.P.J. Vepsäläinen16
Estimated H-index: 16
(Aalto University)
With increasing cost-reduction pressures, outsourcing of information systems (IS) functions has emerged as an important option for managers in companies around the world. In this paper we present the results of our exploratory, empirical research comparing practices of domestic and global IS outsourcing in the USA, Japan and Finland. The research methodology of a mail survey with similar questionnaires was used in all three countries. The paper provides new empirical evidence comparing these cou...
Cited By62
Newest
Published on Aug 25, 2017
Abdul Wahid Khan4
Estimated H-index: 4
(University of Science and Technology),
Muhammad Imran (Higher Education Commission of Pakistan)
This paper is based on findings of systematic literature review (SLR) and questionnaire survey. "We have conducted SLR to investigate the literature for the identification of critical challenges faced by the vendor organisation in proper management and execution of the outsourcing contract. The SLR findings were validated through questionnaire survey through offshore software development outsourcing experts". "We have also tried in this survey to find out some new challenges apart from the ident...
Published on Jan 1, 2015
The study presented in this thesis investigates Offshore Information Technology Outsourcing (IT offshoring) relationships from clients’ perspective. With more client companies outsourcing their IT operations offshore, issues associated with the establishment and management of IT offshoring relationships have become very important. With the growing volume of offshore outsourcing, the numbers of failures are also increasing. Therefore, both clients (service receivers) and suppliers (service provid...
Published on Jan 1, 2015
Jussi Koskinen1
Estimated H-index: 1
(University of Eastern Finland),
Veikko Halttunen4
Estimated H-index: 4
(University of Jyväskylä),
Juha Mansikkaniemi1
Estimated H-index: 1
(University of Jyväskylä)
Outsourcing means using factors which are external to an organization to perform its functions whereas offshore outsourcing relies on using foreign resources to perform those functions. We focus in this paper on offshore outsourcing of information systems (ISs). We have conducted an exploratory case study of outsourcing IS support services. The services have been outsourced by a supplier organization which has been based in Finland. Main parts of its customer support services have been allocated...
Santanu Mukherjee1
Estimated H-index: 1
,
Kampan Mukherjee9
Estimated H-index: 9
Offshore information technology outsourcing (ITO) is one of the crucial strategic decisions pertaining to both the service provider and the client organisations. In light of the recent political clamour against the offshore ITO, it is quite logical for the decision-makers to reconsider all the established perceptions relating to its positive and negative consequences on the various stakeholders. The key issue in this debate is the worthiness of offshore ITO from the perspectives of both the cont...
Published on Jul 1, 2014
Rosine Hanna3
Estimated H-index: 3
(PSU: Portland State University),
Tugrul U. Daim23
Estimated H-index: 23
(PSU: Portland State University),
David Raffo19
Estimated H-index: 19
(PSU: Portland State University)
Western countries' information technology and software intensive firms are increasingly producing software and IT services in developing countries. With this swift advancement in offshoring, there are many issues that can be investigated to enable companies to maximize their benefit from offshoring. However, significant challenges can happen throughout the lifecycle of offshoring IT service projects which turn the potential benefits into losses. This research investigated CMM/CMMI best practices...
Sanjay Bahl2
Estimated H-index: 2
(Indian Institute of Foreign Trade),
O.P. Wali2
Estimated H-index: 2
Purpose – Information security is a growing concern in society, across businesses and government. As the offshore IT services market continues to grow providing numerous benefits, there are also perceived risks with respect to the quality of information security delivered in the supply chain. This paper aims to examine, as a case, the perceptions of Indian software services provider (service provider) employees with respect to information security governance and its impact on information securit...
Published on Jan 1, 2014
Rosine Hanna3
Estimated H-index: 3
(PSU: Portland State University),
David Raffo19
Estimated H-index: 19
(PSU: Portland State University),
Tugrul U. Daim23
Estimated H-index: 23
(PSU: Portland State University)
Western countries’ information technology and software intensive firms are increasingly producing software and IT services in developing countries. Regardless of the swift advancement in offshore outsourcing, there are arrays of issues that must be investigated in order for companies to benefit from the offshore outsourcing. Numerous significant benefits can be accomplished through the successful management of offshore outsourcing. Critical issues are the challenges that can happen throughout th...
Published on Dec 1, 2013in IET Software0.69
Abdul Wahid Khan4
Estimated H-index: 4
(University of Malakand),
Siffat Ullah Khan12
Estimated H-index: 12
(University of Malakand)
Offshore software development outsourcing is a recent and widely used business strategy for the development of high quality products at low cost. The objective of the research presented in this study is to find critical success factors (CSFs) for contract management to assist vendor organisations for successful outcomes of the offshore software outsourcing contract. A systematic literature review (SLR) process was performed for the identification of factors that can assist vendor organisations i...
Published on Dec 1, 2013in Journal of Strategic Information Systems4.00
Saji K. Mathew6
Estimated H-index: 6
(Indian Institute of Technology Madras),
Yuanyuan Chen1
Estimated H-index: 1
(NUS: National University of Singapore)
Behavioral risks such as shirking and misappropriation of information assets are more prominent in offshore software development context and could adversely affect offshore outsourcing success. This paper studies the moderating effects of different relational norms on the link between behavioral risks and offshore software development success. We focused on three major modes of relational norms: norm of flexibility, norm of solidarity and norm of information exchange. Using PLS path modeling to ...
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