Emerald | Strategic Outsourcing: An International Journal

Understanding transition performance during offshore IT outsourcing

Erik Beulen, Vinay Tiwari, Eric van Heck — 2011-11-22 00:00:00.0

Abstract

Purpose – Within an IT outsourcing relationship, transition represents a critical and complex phase that starts immediately after contract signing. Transition involves handing over outsourced activities from client firm to service provider firm and accompanies a new way of operating. The purpose of this paper is to determine and detail factors influencing the performance of transition phase within global IT outsourcing relationships. Design/methodology/approach – In this paper, the authors present a framework for transition performance that includes four factors: transition planning, knowledge transfer, transition governance and retained organization. This framework is tested and enriched by utilizing a single, in-depth case study involving over 25 interviews with a global offshore IT outsourcing engagement. Findings – It was found that knowledge transfer and transition governance are more critical factors than transition planning and retained organization for transition performance. This was due mainly to two reasons: the critical challenges faced, within the scope of these factors, had higher potential to disrupt transition; and both these factors and their related issues required a significant joint and coordinated effort from client and service provider firms, thereby, making implementation challenging for transition. Originality/value – Practitioners have suggested that over two-thirds of failed outsourcing relationships are due to transition-related challenges. This paper represents one of the first in-depth studies that provides insights from a real-life global outsourcing engagement, which contributes to and complements existing literature on IT outsourcing by providing a greater understanding of transition. Furthermore, it provides practitioners with insights and best practices that can be used to guide transitions in real-life engagements.

Use of shift work in globally distributed software development: Sri Lankan IT professionals' perspective

Vathsala Wickramasinghe, Chandana De Silva — 2011-11-22 00:00:00.0

Abstract

Purpose – The purpose of this paper is to explore information technology (IT) professionals' perception towards shift-based work pattern used by globally distributed software development (GDSD) firms in Sri Lanka, in terms of the effects of shift work on them and strategies they used to cope with shift work. Design/methodology/approach – A self-administered survey questionnaire was chosen as the mode for data collection. Descriptive statistics and factor analysis were used for data analysis. Findings – The findings led to identifying the characteristics of shift work environment, benefits and drawbacks of shift work for IT professionals, strategies used by IT professionals to cope with shift work, and their overall evaluation of the shift work environment. Research limitations/implications – The results of the questionnaire survey provided access to breadth of experience. If qualitative data had also been obtained they could have provided depth by adding insight and substance to the questionnaire survey. Practical implications – The findings of the study suggest that shift work creates problems for IT professionals' health that call for improvements in the areas that are deleterious while retaining or enhancing those that are beneficial for the shift-based workforce. Social implications – The paper provides an understanding of the consequences of shift work for the rhythm of minds and bodies, families and social lives and the routines of rest of the community, and ways to cope with shift work may help the industry to flourish at large. Originality/value – Minimal literature has been found specific to the cohort of IT professionals engaged full-time in GDSD on shift basis with respect to their view of it and issues related to their employment arrangement. It is expected that the findings of this study will provide insight into benefits, challenges and issues associated with shift work to allow individuals and organizational leaders to better understand and utilize shift-based work pattern in GDSD. Further, it is expected that the findings of this study will be a source of general guidance in stimulating future research in this area.

An exploratory study on job and demographic attributes affecting employee satisfaction in the Indian BPO industry

Santoshi Sengupta — 2011-11-22 00:00:00.0

Abstract

Purpose – The business process outsourcing (BPO) industry in India has always been characterized by ungodly hours, monotonous job, low perceived value, dispirited efficiency resulting to high attrition level. Notwithstanding the ever rising attrition rate, it has become critical for the companies to satisfy their employees in order to retain them. The purpose of this paper is to determine what and how job-related and demographic variables are associated with employee satisfaction of the BPO employees. Design/methodology/approach – Data collected from 500 middle level BPO employees was analyzed using SPSS 16.0. T-tests and Duncan's post hoc tests were done to compare the various dimensions of employee satisfaction across selected demographic variables such as gender, marital status, education, age and tenure. Correlation was done to find out the relationship between employee satisfaction and various job characteristics as well as demographic variables and finally, regression was done to find out the actual determinants of employee satisfaction. Findings – There is difference of perception towards the job-related variables on the basis of gender, marital status, education, age, and tenure. Correlations revealed that interpersonal relationships, career progression, salary, company policies, working conditions, and authority have significant positive relationship with employee satisfaction and only accountability had a significant negative relationship with employee satisfaction. Regression revealed the significant determinants of employee satisfaction which were interpersonal relationships, career progression, salary, gender, accountability, and authority. Research limitations/implications – The study exclusively used surveys to poll work-related satisfaction from the employees working only in BPO in India and considers only ten job-related variables and five demographic variables for the study. Practical implications – The comprehensive study of employee satisfaction is helpful for both practitioners and academicians as it helps in disentangling the perceptions about employee satisfaction and also explains the variances among various groups of demographic characteristics. This will enable organizations to correctly gauge employee satisfaction based on the job-related and demographic characteristics. Social implications – Now that the study has revealed the dimensions of employee satisfaction and the crucial determinants of satisfaction, each of these factors can be individually tackled to ensure employee retention. Originality/value – The present study illuminates the existing theoretical foundations regarding employee satisfaction by exploring the detailed and ample responses provided by BPO employees in Indian industry; this can help practitioners to make robust managerial decisions.

The service machine as a service operation framework

Paul Lillrank, Minni Särkkä — 2011-11-22 00:00:00.0

Abstract

Purpose – Understanding and depicting service operations is important, as the contractual agreements have become more complex, particularly in offshore outsourcing. The purpose of this paper is to introduce the Service Machine as a metaphor and a parsimonious conceptual framework for analyzing outsourced service operations in a Business-to-Business-to-Consumer context. Conventional machines have frames or platforms that connect various components. The equivalent of a machine in services is a system of contracts linking a client, a service provider, and the end-users. Clients have the interest to know how, when, where, by whom and with what instructions are their operations being produced. As a result depicting both the service operations and the contractual framework becomes increasingly important. Design/methodology/approach – Through a review of the existing theoretical literature on outsourcing, operations management, contracting and governance, the paper explores a new conceptual model for governing outsourcing arrangements using an inbound voice call center as an example. Findings – The paper argues that although several theoretical domains indirectly shed light on governing outsourcing and offshoring relationships, they typically approach the issue either from a contractual, governance, or process level. The paper elaborates on the assumptions that governance is needed in outsourced services, service production processes and contractual relations both need to be mapped, and the possibility of process-contract co-evolution studied. Originality/value – The paper contributes to the outsourcing literature and to operations management research by developing a new conceptual framework, the Service Machine, for governing service operations in an outsourcing arrangement.

Factors influencing the outsourcing decisions: a study of the banking sector in India

Ravi Kumar Jain, Ramachandran Natarajan — 2011-11-22 00:00:00.0

Abstract

Purpose – This paper is an empirical study of outsourcing practices in the banking sector in India. The purpose of the paper is to investigate the impact of factors which influence the decision makers' attitude towards outsourcing. Design/methodology/approach – Based on a review of the existing literature, an attitudinal model of outsourcing was developed. This model was used to: identify the key factors of benefits, risks, roadblocks, and criticality of outsourcing; develop the instrument to measure the factors; and formulate hypotheses concerning the impact of these factors. The constructs in the instrument that measured these factors were validated by factor analysis. Findings – The impacts of perceived benefits, perceived roadblocks, and perceived criticality on the attitudes towards outsourcing were found to be strong and statistically significant. The impact of perceived risk was weak and statistically insignificant. The model explaining the combined impact of these four factors on outsourcing attitudes was also statistically significant. Research limitations/implications – An important insight from this study is that the clients, at least in the banking sector in India, tend to value in outsourcing quality factors such as process improvement, services improvement and cost transparency more than cost savings. The results of the study provide a basis for rethinking the value proposition offered by outsourcing vendors and for refocusing the research on outsourcing of services in particular. Originality/value – While most studies on outsourcing tend to be theoretical and/or focus on outsourcing from developed to developing countries, this is an empirical study focusing on outsourcing by organizations based in developing countries such as India. Therefore, the results are not confounded by differences in culture-specific communications, business practices, and regulatory regimes between the countries.