• Title/Summary/Keyword: Outsourcing Success

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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 Analysis of the IT-Outsourcing Moderated by Partnership Types (파트너십 관계유형에 따른 아웃소싱의 성과분석)

  • Yeon, Keyong-Hwa
    • Journal of Korean Society for Quality Management
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    • v.36 no.1
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    • pp.49-61
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    • 2008
  • The classical IT-Outsourcing studies have focused on the factors which a company decides for the IT-Outsourcing strategy. But the main concerns of recent researches are more about the Critical Success Factors determining the Success of the IT-Outsourcing service. Especially, the factors, which enhance the level of Success during and after the implementation of IT-Outsourcing services, are the main field of the recent researches. The study about the Partnership between Outsourcer and Outsourcee are also one of the most frequently researched themes. The result of these studies shows us that the "Reliability" and "Communication" are the main factors for the successful partnership. In this paper we try to find out how the IT-Outsourcing factors (independent variable) have influenced on the Success of IT-Outsourcing strategy (dependent variable) with 4 kinds of parameters. These moderate variables are the 4-types of Partnership by FORT, that is, "Support", "Reliance", "Alignment" and "Alliance".

An Empirical Study on the Determinant Factors and Success Factors of Accounting Information Systems Outsourcing (회계정보시스템 아웃소싱의 결정요인과 성공요인에 관한 실증연구)

  • Chung, Jun-Soo;Song, Sin-Geun;Cheon, Myun-Joong
    • Asia pacific journal of information systems
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    • v.11 no.1
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    • pp.91-115
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    • 2001
  • Faced with tougher competition in global, organizations are pressured to improve organizational productivity, including information systems(IS) departments. Especially related to IS, trying to remain competitive and up-to-date in rapidly changing world is becoming a financial burden to many organizations. Through outsourcing, organizations can provide better services and acquire and maintain a competitive advantage. In recent years IS outsourcing related researches have appeared in trade and academic literature. However the research on accounting information systems(AIS) outsourcing is very little or limited. This study attempts to empirically test the relationship between determinant factors and the degree of accounting information systems outsourcing as well as the relationship between success factors and the interactions between the degree of accounting information systems outsourcing and outsourcing success. Based on the previous studies on IS outsourcing and its related theories, determinant factors(transaction characteristic, resource performance, and risk dependence) and success factors(monitor, participation, and vendor capability) were identified and their measures were developed. Empirical results demonstrate that the change in the degree of AIS outsourcing is determined by the specificity of accounting information asset, uncertainty, the effect of internal AIS, AIS cost-effectiveness, and cost increase risks, and that monitor and vendor capability are implementation factors determining the degree of outsourcing success.

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Management of ASP Outsourcing Project Risks using Real Option Approach (실물옵션 접근법을 활용한 ASP 아웃소싱 리스크 관리)

  • Nam, Seung-Hyeon
    • Journal of the Korea Academia-Industrial cooperation Society
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    • v.11 no.7
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    • pp.2396-2405
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    • 2010
  • Information System (IS) Outsourcing is one of the powerful alternatives to guarantee the competitive advantages in the rapidly changing business environment. Most studies on IS outsourcing area have focused on the Critical Success Factors(CSFs) influencing the Success of IS outsourcing or the performance measuring the success of IS outsourcing projects. The CSFs or the performances which measures the success of IS outsourcing project have limitations to explain how to succeed in doing IS outsourcing project. This study uses Real Options Approach to make IS outsourcing projects' success by recognizing and minimizing IS outsourcing risks.

An Exploratory Empirical Study on the Partnership and Performance of IT-enabled Business Process Outsourcing : A Case of CTI(Computer Telephony Integration) based Customer Service Center Outsourcing (정보기술 기반 비즈니스 프로세스 아웃소싱 파트너십과 성과에 관한 탐색 : CTI(Computer Telephony Integration) 기반 고객서비스센터 아웃소싱 사례를 중심으로)

  • An Joon Mo;Oh Min Suk
    • Journal of Information Technology Applications and Management
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    • v.12 no.1
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    • pp.241-259
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    • 2005
  • This study explores a model of partnership to the success of outsourcing CTI(computer telephony integration) based customer service centers of a telecommunication service company. The motivation of the study is to extend the research on IT outsourcing to IT-enabled BPO of customer service centers as a specific IT outsourcing practice. Previous research on IT outsourcing partnership and success is reviewed for developing an a research model of IT-enabled BPO. This model is proposed based on the previous partnership success models in information systems research. The results of the study confirm major factors related to successful IT-enabled BPO in previous research. Especially, the specificity of a contract and strategic collaboration in partnership are found to be influential on the success of IT-enabled BPO.

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The Impact of the Vendor Firm's Competence on the Processes of IS Outsourcing Success: A Relationship Perspective

  • Seo, Yun-Weon;Lee, Jae-Nam;Han, Hyun-Soo
    • Proceedings of the CALSEC Conference
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    • 2005.03a
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    • pp.163-168
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    • 2005
  • While the client-vendor relationship has been mainly examined from the service receiver's perspective in IS outsourcing literature, the vendor's factors have seldom been explored. To address this issue, our study adopts interaction process theory and develops the model focusing on the competence of the vendor as a key antecedent of the client-vendor relationship intensity and outsourcing success. Results from empirical data gathered from Korean firms indicate that the vendor competence factors identified in this paper positively impacts the client-vendor relationship and outsourcing success. The findings have significant implications for IS outsourcing practices and further research.

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The effects of outsourcing strategies and outsourcing partner selection factors on the success of outsourcing and BSC performance (아웃소싱 파트너 선정요인과 전략이 아웃소싱 성공도 및 BSC성과에 미치는 영향에 관한 연구)

  • Jeong, BumSung;Shim, JungTaek;Lee, SangShik
    • Journal of Korea Society of Industrial Information Systems
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    • v.18 no.6
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    • pp.113-125
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    • 2013
  • Outsourcing is used as one of the effective methods while many companies have to start to innovate everything because of increased fierce global competition, low-growth economy, and varied customers' requirements. Under these conditions, a lot of firms are introducing outsourcing for cost savings, risk reduction, management efficiency, strengthen core competence. The purpose of this study is to analyze the effect of between outsourcing success by outsourcing strategy and factors for selecting outsourcing partners and BSC success in the Korea manufacturing. This study was intended to make it possible to get a practical approach on evaluation and compensation of the outsourcing manufacturing enterprises by identifying outsourcing success factors and BSC performance factors. When an outsourcing partner of enterprise is selected, detailed assessment will be possible in terms of partner's competence, financial factors, institutional factors, and operational factors.

A Contingency Fit Between Client IT Capability and Vendor Competence in IS Outsourcing Relationship

  • Seo, Yun-Weon;Han, Hyun-Soo;Lee, Jae-Nam
    • Proceedings of the Korean Operations and Management Science Society Conference
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    • 2005.05a
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    • pp.1072-1082
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    • 2005
  • This study develops a contingency fit between client IT capability and vendor competence in IS outsourcing relationship by integrating both the contingency theory in organization and the relationship theory in IS outsourcing. By adopting a fit as a moderation, the relationship intensity of IS outsourcing is hypothesized to be influenced by the fit between client IT capability and vendor competence, thereby leading to the success of outsourcing. The testing data was obtained from 20 IS outsourcing projects from both clients and vendors in Korea. The research model proposed in this study was then tested using the structural equation model (SEM). As expected, the result shows that when there is a fit between client IT capability and vendor competence, higher level of relationship intensity and outsourcing success exhibits. The findings have significant impactions for further research and practice.

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Improving Outsourced ISD Project Performance : Focusing on Conflict and Conflict Resolution Facilitation (아웃소싱을 통한 정보시스템 개발성과 향상방안 : 갈등 및 갈등해결 촉진을 중심으로)

  • Cho, Dong-Hwan;Lee, Ho-Geun;Lee, Choong-Cheong
    • Journal of the Korean Operations Research and Management Science Society
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    • v.33 no.1
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    • pp.71-105
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    • 2008
  • Various stakeholders within and outside of the organization are involved and participate in the outsourced IS development. As their interests and goals are different conflict arises in the process of their interaction, and it is an important factor affecting outsourcing success. The study focuses on the conflict between client users and vendor, i.e. main conflict in the outsourcing project, and examines the relationship of conflict with project success, the antecedents of conflict, and investigates the effectiveness of conflict resolution facilitation. An integrated conceptual model is developed grounded on is outsourcing, IS development, project management, and organizational behavior literature. Nine specific hypotheses on the conflict in outsourcing projects are proposed, and data collection and analysis are performed with 214 ISD outsourcing projects. Results indicated that the conflict between client users and vendor in outsourcing projects was found to have negative effects on project success. Main causes affecting conflict were examined, and relative influences of these causes were clarified. Recently internal IT personnel have been faced their role change with the increase of outsourcing, and the importance of their conflict resolution facilitation was highlighted.

Partnership's Affect on Success of IT-Outsourcing (파트너십이 IT 아웃소싱의 성과에 미치는 영향)

  • Yeon, Keyong-Hwa
    • The Journal of the Korea Contents Association
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    • v.7 no.7
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    • pp.171-178
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    • 2007
  • In this paper the Partnership's Influence on the Success of IT-Outsourcing is studied. Especially the role of "Partnership" as Intermediate is mainly researched. As the result we can see the fact that the economic factor does not affect the Partnership and the success of IT-Outsourcing, because the IT-Outsourcing can cause sometimes the increase of the cost. On the other hand strategic factor and technical factor affect directly the Success of IT-Outsourcing. This means that the Success of IT-Outsourcing depends on the close cooperation between customer and service provider, rather than on the following the contents of the Service Level Agreement(SLA). In consequences the Partnership based on the steady and fluent communication and the feeling of sharing the risk and benefit between two parties is the key factor for the Success of IT-Outsourcing.