• Title/Summary/Keyword: Offshore outsourcing

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Offshore Outsourcing Success : An Integrated Framework

  • Kim, Jin Ki
    • Journal of Information Technology Applications and Management
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    • v.24 no.4
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    • pp.153-170
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    • 2017
  • As the digital economy goes global, firms are trying to find suppliers that can address their managerial goals and strategies. The alternatives are not confined to domestic firms. Firms have been trying to connect to foreign partners worldwide. Although offshore outsourcing grants firms various benefits, they present big cultural challenges. However, there is little research on the impact of cultural or country factors on outsourcing. The goal of this paper is to synthesize the outsourcing success literature and develop propositions for outsourcing success in the context of offshore outsourcing. This paper proposes that cultural effects should be included in evaluating the success of offshore outsourcing. Knowledge sharing and the scope of outsourcing are adopted in the base outsourcing success model from previous literature. In the extended model partnership quality is included as a mediator and organizational capability and outsourcing relationship type are also included as moderator. Finally, the integrated framework of offshore outsourcing success includes cultural factors as moderators of the relationships between outsourcing success antecedents and the success of offshore outsourcing. Reasoning for propositions, managerial implications, and future research directions are discussed.

The Feasibility Study of Offshore Outsourcing in Korea SI Industry: Comparison between India and China case (한국 SI 산업의 Offshore 아웃소싱 가능성 검토: 인도/중국 사례 비교)

  • Yoo, Jin-Ho;Kwon, Yong-Min;Yi, Yoon-Sung
    • Journal of Information Technology Services
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    • v.4 no.2
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    • pp.135-144
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    • 2005
  • The plenty of successful cases of Multi-national companies has been realized benefits of offshore outsourcing in particular "cost savings" from offshore IT outsourcing services, such as call center, software development, IT support and maintenance etc. A few Korean companies recently started to make the feasibility study of offshore IT outsourcing to catch up with the global trend. The objective of this study is to present the feasibility of offshore IT outsourcing of Korean companies through the analysis of pilot projects results between Indian and Chinese companies. The analysis include key elementsof cost, productivity, quality, practical issues as well as Gartner's framework, "AD Sourcing Cost Model", composed of 7 model factors. The findings of this study are not limited to understand offshore IT outsourcing but also provide useful guidelines covering wide range from the theoretical framework of selecting suitable offshore partner.

A Qualitative Study of Offshore Outsourcing by Korean Clothing Companies (국내 의류업체의 해외소싱에 대한 질적 연구)

  • Hong, Kyung-Hee;Kim, Young-Mi;Yang, Jin-Ok;Lee, Ji-Soo;Lee, Yoon-Jung
    • Journal of the Korean Society of Clothing and Textiles
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    • v.34 no.4
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    • pp.703-714
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    • 2010
  • This study assumes that Korea's offshore outsourcing is used for diverse purposes such as designing, the supply of raw and subsidiary materials, production, and manufacturing. The purpose for production exists in the beginning stages of development, because it would have grown in scope since the 1990s when offshore outsourcing began in earnest. In this study, in-depth interviews were conducted with 24 firms with an annual production capacity of more than 200,000 pieces among clothing brands for the domestic market, clothing exporters, and promotion agencies. The interviews took place from December 18, 2008 to January 30, 2009. The interviewees were limited to the officers who had the authority to select manufacturers and decide on production volumes. Responses from the in-depth interviews were recorded, transcribed, and analyzed. The study results are summarized as follows: First, Korean clothing companies were found to rely on offshore outsourcing (China, North Korea, Vietnam, and Indonesia). Second, offshore outsourcing focused on the purposes for production; however, even fabrics were often outsourced in the case of production in China. Third, the interviewed firms mentioned cost savings, production cost reduction, and labor cost reduction most frequently as the main reasons for offshore outsourcing. Fourth, customs duties were considered most important in offshore outsourcing. Finally, when deciding on foreign manufacturers for offshore outsourcing, the surveyed clothing companies were found to: select manufacturers after market research in their outsourced countries, maintain existing contracts, or consider design capabilities and price quotations of candidate manufacturers.

An Empirical Investigation of Vendor Readiness to Assess Offshore Software Maintenance Outsourcing Project

  • Ikram, Atif;Jalil, Masita Abdul;Ngah, Amir Bin;Khan, Ahmad Salman;Mahmood, Yasir
    • International Journal of Computer Science & Network Security
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    • v.22 no.3
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    • pp.229-235
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    • 2022
  • The process of correcting, upgrading, and improving software products after they have been handed over to the consumer is known as software maintenance. Offshore software maintenance outsourcing (OSMO) clients benefit from cost savings, time savings, and improved quality software through OSMO. In most circumstances, the OSMO vendor makes a lot of money but not in all the cases. Especially, when the OSMO project offer is not properly assessed. An efficient outsourcing contract might yield successful outcomes for outsourced projects. But before sending a detailed proposal to bid on the OSMO project the vendor must have to assess the client's project (business offer) requirements. The purpose of this study is to find out common trends within the assessment of a OSMO project. A case study approach along with semi-structured interviews from eight companies concluded ten common practices and several roles. Among these practices, four (code structure, requirements, communication barriers and required infrastructure) were consistent amongst the responses .The findings, limitations and future work are discussed.

The Feasibility Study of Offshore Outsourcing in Korea SI Industry;Comparison between India and China case (한국 SI 산업의 Offshore 아웃소싱 가능성 검토;인도/중국 사례 비교)

  • Yoo, Jin-Ho;Kwon, Yong-Min;Yi, Yoon-Sung
    • 한국IT서비스학회:학술대회논문집
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    • 2005.05a
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    • pp.12-19
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    • 2005
  • 최근 해외 선진 기업들이 콜센터, SW 개발 및 유지/보수, 디자인 설계 (CAD/CAM) 등 다양한 IT 서비스 관련 업무와 기능들을 해외로 활발하게 이전하여 비용절감 등의 효과를 실현하고 있다. 한국의 일부 기업에서도 이러한 Offshore 아웃소싱을 추진하고 있으며 SI 산업 측면에서도 그 타당성 검토의 필요성이 대두되고 있다. 본 논문에서는 인도, 중국 업체와의 프로젝트 사례를 통해 소프트웨어 개발 및 유지/보수 측면에서의 외주 가능성을 제시하고자 한다.

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The Strategy for Global Competitiveness of the Outsourcing Logistics in the Information-Contents Business (정보콘텐츠 기업의 아웃소싱물류 국제 경쟁력전략)

  • Yun, Hui-Suk
    • Journal of Korea Port Economic Association
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    • v.24 no.2
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    • pp.241-263
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    • 2008
  • Since the outsourcing logistics business has been an emerging opportunities for many new service providers entering into such an ever-changing technology, knowledge and logistics market, it has resulted into a price-sensitive and high competition industry. In order to sharpen the global competitive power of the information-contents business in this severe environment, this research is engaged in meeting the following purposes: 1. well position the outsourcing logistics services in the logistics business industry 2. articulate the business model to compete in the outsourcing logistics services market, Information-contents industry. 3. propose a competitive strategy for a outsourcing logistics services provider to grow the information-contents business. This research report could also serve as a framework for the other logistics and the outsourcing services companies to plan out their competitive strategies of information-contents industry. For new comers to join the same market, it will be also helpful in positioning their services and making business decisions in a holistic view.

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The Production Situations of Apparel Sewing Company and the Perceptions about the Mass Customization (의류봉제업체의 생산현황과 대량맞춤에 대한 인식)

  • Hong, Kyung-Hee;Lee, Ji-Soo;Kim, Young-Mi;Yang, Jin-Ok;Lee, Yoon-Jung
    • Fashion & Textile Research Journal
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    • v.12 no.2
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    • pp.162-171
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    • 2010
  • This study aims to discuss what changes Korean clothing companies and manufacturers have undergone with production facilities moving abroad due to offshore outsourcing and examine what conditions the clothing manufacturers are facing and how the clothing companies recognize those manufacturers. For these purposes, in-depth interviews were conducted with 24 firms with annual production capacity of more than 200,000 pieces among clothing brands for the domestic market, clothing exporters and promotion agencies. Those interviewed firms were the companies who were found to produce more than 200,000 pieces of clothing per year, and the interview-based survey was conducted from December 18, 2008 to January 30, 2009. The key findings from this study are as follows; first, a high percentage of interviewed firms were producing only a small number of items in Korea with a large part of their production line transferred abroad or outsourcing all of their production abroad only with their headquarters in Korea. Second, many were employing contractors rather than their own factories. Third, when asked about the wage levels of clothing manufacturers, many of the clothing companies gave responses such as: 'They are just our contractor, so we respect their decision,' 'We don't know because it's none of our business,' or 'We don't know at all.' Fourth, when asked about the work environment of clothing manufacturers, the clothing companies gave responses such as: 'We know in part,' 'To our knowledge, they conform to the Labor Standards Law,' or 'We don't know at all.' Fifth, the production line of clothing manufacturers featured straight-line systems, specialization, pairing and compounding/mixing. Sixth, it was found that clothing companies had interest in mass customization but their preparations were not satisfactory.

Exploratory Analysis on the Global Sourcing and Implications for Competitiveness of the Korean Apparel Firms (국내의류업체의 글로벌 소신 현황과 경쟁력 강화방안)

  • 이윤숙;육심현;최원경;이수경;진병호
    • Journal of the Korean Society of Clothing and Textiles
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    • v.26 no.6
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    • pp.751-762
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    • 2002
  • Korean apparel industry is facing critical moment due to shortage of labor, wage increases and intensive competition among domestic manufactures. In addition, international production has been shifting to China and the other low-wage countries from established locations such as Korea, Hong Kong and Taiwan. Global sourcing has been received considerable attention since firms can enhance their competitive advantage as well as comparative advantage by coordinating their sourcing activities global]y. This studs regarded global sourcing as one of the strategic tools to achieve competitive advantage of Korean apparel firms, and explored the current status by literature reviews and series of in-depth interviews with managers of korean apparel firms. The findings of this study were as follows: 1) Due to geographical advantage, China was the most favored nation for outsourcing for domestic markers. However, exporting firms preferred Latin America (including Mexico) to take advantage of duties, quotas and geographical proximity to the US market. 2) In selecting the global sourcing country, productivity, technical ability, local government regulation, and culture were considered important. 3) Most Korean apparel firms sources production globally, and followed by raw materials and trims. 4) Cost and quality were the most important factors in deciding subcontractors, and experience, productivity, equipment and finances were the next concerns. Academic implications and future directions were suggested based on findings.

Effect of Human Related Factors on Requirements Change Management in Offshore Software Development Outsourcing: A theoretical framework

  • Mehmood, Faisal;Zulfqar, Sukana
    • Soft Computing and Machine Intelligence
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    • v.1 no.1
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    • pp.36-52
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    • 2021
  • Software development organizations are globalizing their development activities increasingly due to strategic and economic gains. Global software development (GSD) is an intricate concept, and various challenges are associated with it, specifically related to the software requirement change management Process (RCM). This research aims to identify humans' related success factors (HSFs) and human-related challenges (HCHs) that could influence the RCM process in GSD organizations and propose a theoretical framework of the identified factors concerning RCM process implementation. The Systematic Literature Review (SLR) method was adopted to investigate the HSFs and HCHs. Using the SLR approach, a total of 10 SFs and 10 CHs were identified. The study also reported the critical success factors (HCSFs) and critical challenges (HCCHs) for RCM process implementation following the factors having a frequency 50% as critical. Our results reveal that five out of ten HSFs and 4 out of ten HCHs are critical for RCM process implementation in GSD. Finally, we have developed a theoretical framework based on the identified factors that indicated a relationship among the identified factors and the implementation of the RCM process in the context of GSD. We believe that the results of this research can help tackle the complications associated with the RCM in GSD environment, which is vigorous to the success and progression of GSD organizations.

A Qualitative Study of Korean Clothing Companies' Perception of Production Environments and Labor Standards in Foreign Contract Manufacturers (해외 생산업체에 대한 국내 의류업체의 생산환경 및 근로기준 인식에 대한 질적 연구)

  • Hong, Kyung-Hee;Yang, Ji-Nok;Lee, Ji-Soo;Kim, Young-Mi;Lee, Yoon-Jung
    • Fashion & Textile Research Journal
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    • v.12 no.3
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    • pp.291-301
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    • 2010
  • Today Korean clothing companies are experiencing difficulties in the global market due to unfavorable business conditions including poor production environments, labor shortage, rising costs, the further opening of the domestic distribution market, and increased competition among them. As a result, this has caused many of Korean clothing companies to transfer their production bases abroad in search of relatively inexpensive labor force, instead of using domestic plants. This study attempted to examine how Korean clothing companies perceive production environments and labor standards with regard to their offshore outsourcing. In such an attempt, in-depth interviews were conducted with 24 brand-name clothing firms. Those interviewed firms were the brands for the domestic or foreign market that were found to produce more than 200,000 pieces of clothing per year, and also the group of interviewees included some promotion service providers. The key findings from this study are as follows: First, a large number of the interviewed clothing companies were found to manage their foreign contract manufacturers by "visiting their factories regularly on a seasonal basis" or "stationing their personnel in factory for management purposes." Second, in relation to quality control in their foreign manufacturers, the most frequent response was to "have personnel stationed in those manufacturers." A smaller number of the clothing companies answered that they had "engaged their production management teams in quality control from time to time," or "used their inspectors to inspect products." Third, when asked about labor standards in foreign contract manufacturers, the largest number of the clothing companies responded, "we apply our own standards." The results of this study suggest that most of domestic clothing companies still use offshore sourcing just as a means of reducing their initial labor costs. However, in the continuously changing environment of the global clothing industry, clothing businesses are required to escape from the early phases of their manufacturing environments and set up more globalized standards.