Strategic Outsourcing: An International Journal

Changes in IT sourcing arrangements: An interpretive field study of technical and institutional influences : Table of Contents

Bandula Jayatilaka, Rudy Hirschheim — Sun Jun 14 14:15:06 BST 2009

Abstract:
Purpose – Companies are increasingly changing their IT sourcing arrangements. Such changes often involve significant costs. The purpose of this paper is to explore and explain IT sourcing as a dynamic organizational phenomenon and to gain a deeper understanding of the drivers and outcomes of IT sourcing changes at organizational level. Design/methodology/approach – A qualitative approach with interpretive analysis of historical data. Data are collected from companies through interviews and review of public documents where available. Findings – The underlying tendencies of change are either primarily associated with institutional processes, or with what we term “IT-driven” considerations. The perceived success of IT outsourcing in companies is dependent on these underlying tendencies. Research limitations/implications – This is an exploratory study and the findings on the underlying tendencies in change will be helpful in further theory development and research on IT outsourcing changes. Practical implications – Knowledge coming from such research could help companies make more effective decisions about IT sourcing changes and set realistic expectations. Originality/value – The dynamic perspective taken in this paper is different from the perspectives taken in earlier research where the researchers took cross-sectional views of IT outsourcing arrangements. This paper shows the importance of re-examining the reasons for change using the more encompassing concept of orientation.

Criteria for sourcing from developing countries : Table of Contents

Adegoke Oke, Arnold Maltz, Poul Erik Christiansen — Sun Jun 14 14:15:06 BST 2009

Abstract:
Purpose – Increasingly, sourcing decisions are routinely including contract manufacturers and suppliers in developing countries. While many studies have researched and identified the criteria for selecting suppliers in general terms, there has been a dearth of studies on the criteria for choosing amongst suppliers in developing countries including suppliers in Eastern Europe, Asia and Africa. The purpose of this paper is to investigate the criteria for choosing amongst suppliers in different developing countries. Design/methodology/approach – The methodology consists of a series of case studies involving six firms some of which are sourcing from developing countries and some that are based in developing countries and supply lead firms in developed countries. Findings – Cost, physical and cultural proximity, political factors and reliability are found to be the primary criteria for sourcing decisions that include suppliers in Eastern Europe, Asia and Africa. Further, the paper identifies why these criteria are used and the drawbacks in using them. Research limitations/implications – A key limitation of the study is generalizability. Based on the use of a case study methodology, caution should be exercised in generalizing the results of the study. Originality/value – In spite of the limitations, this paper contributes to the extant literature on sourcing from developing countries. It provides valuable insights for global purchasing managers interested in sourcing from developing countries in terms of the criteria for choosing a particular location for sourcing and selecting a supplier within a given location.

Beyond job losses: The net effects of offshoring and inshoring on employment in the Danish economy : Table of Contents

Peter D. Ørberg Jensen, Jacob Funk Kirkegaard, Nicolai Søndergaard Laugesen — Sun Jun 14 14:15:06 BST 2009

Abstract:
Purpose – The purpose of this paper is to assess the impact of offshoring and inshoring on the demand for different types of labor. Design/methodology/approach – The paper uses a survey with 1,500 firms located in the Eastern part of Denmark to identify overall offshoring and inshoring trends. Estimates of the employment impact are founded on data from a sub-sample of firms with offshoring and/or inshoring. Findings – The paper shows that in the period 2002-2005 more jobs were created as a result of inshoring of activities into Eastern Denmark from firms outside Denmark than were eliminated due to offshoring from firms in the Danish region. Overall, highly skilled workers reap the benefits of offshoring and inshoring, whereas the positions of low-skilled workers are challenged. Originality/value – In contrast to most academic research on offshoring, which predominantly focus on outward offshoring flows, the study analyzes both outward and inward offshoring (inshoring) and gives a more holistic and balanced view on the magnitude and employment impact.

A standard agreement for vendor managed inventory : Table of Contents

Francesco Zammori, Marcello Braglia, Marco Frosolini — Sun Jun 14 14:15:06 BST 2009

Abstract:
Purpose – The purpose of this paper is to define the standard structure of a vendor managed inventory (VMI) agreement, which can be used as a guideline for the early definition of the agreement. Design/methodology/approach – Starting from an industrial application of relevance, the information flow and the technical details, which are to be defined before the operation startup, are identified and discussed. These data are used as the key points for the definition of the basic frame of the agreement. A particular emphasis is given to the “Technical Specification” and the “Service Level Agreement” sections. Findings – It is shown that a VMI agreement should be arranged into parts dealing with the generic and legal sides of the agreement, whereas the technical aspects and the relation-specific topics should be addressed in the annexes. This increases the flexibility of the agreement in that, as the VMI relationship evolves over time, changes will affect only the annexes leaving the main body of the agreement unaltered. Practical implications – The proposed agreement has a flexible structure and can be easily adopted by the personnel involved to correctly define and implement VMI in several industrial fields. Originality/value – By approaching VMI from a practical point of view, this paper identifies the main issues that must be covered in the agreement to fit the needs of both parties and to assure benefits on both sides.

Outsourcing in China: opportunities, challenges and lessons learned: INDUSTRY INSIGHT : Table of Contents

Wendell O. Jones — Sun Jun 14 14:15:06 BST 2009

Abstract:
Purpose – The purpose of this paper is to identify the opportunities, challenges and lessons of information technology outsourcing (ITO) in China. Design/methodology/approach – The challenges, opportunities and trends in offshore ITO in China are examined based on two trips to software centers in China, interviews and conversations with Chinese executives and government officials, research programs of outsourcing researchers and information from advisors and practitioners. Findings – The paper extracts lessons learned about practices, processes and cultural factors that contribute to outsourcing success in China; why China attract ITO customers; how cultural dimensions and differences in accepted business practices complicate outsourcing in China; what strengths and weaknesses to expect from Chinese IT workers and outsourcing companies; and how to evaluate, select and manage Chinese suppliers. Originality/value – The paper presents principles and extracts lesson learned to address the issues and opportunities for outsourcing in China.