Outsourcing and offshoring of professional services: business optimization in a global economy
"This book discusses the considerations and implications surrounding the outsourcing and offshoring of professional services, such as software development computer-aided design, and healthcare, from multiple global perspectives. This book, offers industry professionals, policymakers, students,...
Saved in:
| Format: | Book |
|---|---|
| Language: | English |
| Published: |
Hershey [u.a.]
Information Science Reference
2008
|
| Series: | Premier reference source
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| Subjects: | |
| Online Access: | Inhaltsverzeichnis |
| Summary: | "This book discusses the considerations and implications surrounding the outsourcing and offshoring of professional services, such as software development computer-aided design, and healthcare, from multiple global perspectives. This book, offers industry professionals, policymakers, students, and educators with a balance between a broad overview and detailed analysis of offshore outsourcing, would make an invaluable addition to any reference library"--Provided by publisher. |
| Physical Description: | XXIX, 408 S. graph. Darst. |
| ISBN: | 9781599049724 |
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| adam_text | Titel: Outsourcing and offshoring of professional services
Autor: Gupta, Amar
Jahr: 2008
Detailed Table of Contents
Foreword...........................................................................................................................................xvii
Preface.................................................................................................................................................xx
Acknowledgment...........................................................................................................................xxviii
Section I
Executive Highlight
Chapter I
Offshoring: The Transition from Economic Drivers Toward Strategic Global Partnership
and the 24-Hour Knowledge Factory......................................................................................................1
Amar Gupta, University of Arizona, USA
Satwik Seshasai, International Business Machines (IBM) Corp., USA
Massachusettes Institute of Technology, USA
Sourav Mukherji, The Indian Institute of Management, Bangalore
Auroop Ganguly, Oak Ridge National Laboratory, USA
The changing economic and labor conditions have motivated firms to outsource professional services
activities to skilled personnel in less expensive labor markets. This offshoring phenomenon is studied
from a political, economic, technological and strategic perspective. Next, an analytical model is developed
for achieving strategic advantage from offshoring based on global partnerships. The model studies the
impact of offshoring with respect to the complexity and strategic nature of the tasks and presents a
decision strategy for obtaining value through offshoring of increasingly complex tasks. The result is
an integrated 24-Hour Knowledge Factory that is based on a sustainable global model rather than a
short term fiscal model. This 24-hour paradigm embodies the shift-style workforce that evolved for the
manufacturing sector during the Industrial Revolution and relies on a set of critical success factors in
the current environment. A case example is provided from IBM to illustrate these underlying critical
success factors.
Section II
Foundations and Frameworks
Chapter II
Evolving Relationship between Law, Offshoring of Professional Services, Intellectual
Property, and International Organizations............................................................................................25
Amar Gupta, University of Arizona, USA
David A. Gantz, University of Arizona, USA
Devin Sreecharana, University of Arizona, USA
Jeremy Kreyling, University of Arizona, USA
This chapter covers four issues. First, it examines evolving international conventions to determine whether
countries, especially developed countries, can take any steps to inhibit offshoring with the objective of
protecting jobs in their respective countries. Second, it looks at statistics from independent sources to
see if outsourcing exceeds insourcing, or vice versa, in the case of the U.S. Third, it looks at trends in
outsourcing in the legal arena. Fourth, it looks at the intellectual property aspects of outsourcing and
presents a long-term vision on how this difficult issue is likely to be addressed in the long-term.
Chapter III
Information Technology/Systems Offshore Outsourcing: Key Risks and Success Factors.................50
MaheshS. Raisinghani, Texas Woman s University, USA
Brandi Starr, Texas Woman s University, USA
Blake Hickerson, Texas Woman s University, USA
Marshelle Morrison, Texas Woman s University, USA
Michael Howard, Texas Woman s University, USA
The offshore outsourcing of information technology and information systems (IT/IS) is being increasingly
practiced among firms that are focusing on core competencies and cost-effectiveness. With the increase
in offshore IT/IS operations, a growing number of companies are encountering negative experiences
and unpredicted results. The analysis performed in this chapter reveals the possible risks and perceived
success factors of companies outsourcing IT/IS operations offshore. The major points of interest are
operational and strategic risks; legal contracts; cultural, security, and financial issues; and noted success
factors by companies that participate in offshore outsourcing. The research indicates the importance of
risk identification and the formulation of strategic plans that include preventive, detective, and corrective
control methods of implementation and evaluation. Effective methods and metrics for measuring the
success or failure of IT/IS offshore outsourcing operations is expected to be a continuing development
with the increasing growth of this phenomenon.
Chapter IV
A Paradigmatic and Methodological Review of Research in Outsourcing...........................................71
Vanita Yadav, Management Development Institute, India
Rajen K. Gupta, Management Development Institute, India
Due to the growing academic and practitioner interest in the field of outsourcing, there is a need to do a
comprehensive assessment and synthesis of research activities to date. This chapter addresses this need and
examines the academic literature on information systems outsourcing and business process outsourcing
using a paradigmatic and methodological lens. The objective of this chapter is fourfold. Firstly, it examines
the status of outsourcing research from 1995 to 2005 in eight leading academic journals, to compare
the current research trends with past research directions in terms of methodologies applied. Secondly, it
analyzes the research paradigms adopted in these research papers using the Operations Research Paradigm
framework. Thirdly, it compares and contrasts the outsourcing research work published in three leading
European journals with the work published in three leading American journals. Finally, it uncovers the
implications of this study and the directions for future research.
Chapter V
An Outsourcing Acceptance Model: An Application of TAM to Application Development
Outsourcing...........................................................................................................................................89
John Skip Benamati, Miami University, USA
T.M. Rajkumar, Miami University, USA
The use of outsourcing is expanding rapidly. This chapter empirically tests a model of application
development outsourcing acceptance based on the technology acceptance model (TAM). TAM-suggested
perceived usefulness and ease of use mediate the effects of other variables on users attitudes towards
a technology. The model tested in this chapter suggests that perceived usefulness and ease of use of
outsourcing mediate the effects of the external environment, prior outsourcing relationships, and risks on
decision-makers attitude toward application development outsourcing. One hundred and sixty respondents
to a survey sent to 3000 IT decision makers provided data to confirm the applicability of TAM and the
influences of these external variables. Support for applying TAM in this alternative context was found.
Three sub-dimensions of risk, project management, relationship, and employee risk emerged. Project
management and employee risks along with prior relationships were found to significantly influence
decision maker perceptions about application development outsourcing.
Section III
Sectoral Applications and Case Studies
Chapter VI
Outsourcing in the Healthcare Industry: Information Technology, Intellectual Property and
Allied Aspects.....................................................................................................................................115
Amar Gupta, University of Arizona, USA
Raj K. Goyal, VA Boston Health Care System, USA
Keith A. Joiner, University of Arizona, USA
SanjaySaini, Harvard Medical School, USA
The healthcare industry is being impacted by advances in information technology in four major ways:
first, a broad spectrum of tasks that were previously done manually can now be performed by computers;
second, some tasks can be outsourced to other countries using inexpensive communications technology;
third, longitudinal and societal healthcare data can now be analyzed in acceptable periods of time; and
fourth, the best medical expertise can sometimes be made available without the need to transport the
patient to the doctor or vice versa. The healthcare industry will increasingly use a portfolio approach
comprised of three closely-coordinated components seamlessly interwoven together: healthcare tasks
performed by humans on-site; healthcare tasks performed by humans off-site, including tasks performed
in other countries; and healthcare tasks performed by computers without direct human involvement.
Finally, this chapter deals with intellectual property and legal aspects related to the three-pronged
healthcare services paradigm.
Chapter VH
Offshoring Entertainment and Media to India....................................................................................142
Alyssa D. Schwender, Lions Gate Entertainment, USA
Christopher J. M. Leet, Intuit Corporation, USA
This chapter explores opportunities for the offshoring of assorted processes in the global entertainment
and media industry. Currently, this industry is experiencing incredible growth, much of it spurred by the
increased digitalization of media production around the world. The rise of digital technology, faster global
connectivity, an increased quality of downloads have been the driving factors behind this growth. The
filmed entertainment, recorded music, and television networks and distribution sectors of the industry will
undergo major technological changes in the coming years. These changes will provide opportunities for
entrepreneurs to enter the global media industry. Using venture funding, startups are utilizing offshoring
concepts to create a more efficient cost-effective means of doing business. The Asia Pacific market is
currently the fastest-growing region, with India leading the way with offshoring of film functions. The
industry will see a change from large media conglomerates as the sole owners of all media to smaller
companies offering services, in which they specialize, to these larger companies, as digital media makes
it easily accessible around the globe.
Chapter VIII
Outsourcing of Medical Surgery and the Evolution of Medical Telesurgery.....................................157
ShawnaSando, University of Arizona, USA
With rising and often unreasonable costs in the U.S. healthcare system, Americans are becoming more
inclined to seek cheaper alternatives. In some cases, Americans do not have to search for such alternatives
on their own because their employers are offering them incentives to receive care from a foreign institution.
Employees can go abroad to countries, such as India, in order to receive medical services for prices that
are at least half of what the procedure would cost in the U.S. This emerging market seems to be beneficial
to all involved except U.S. healthcare providers; however, this outsourcing of healthcare services sends
a powerful international message. It seems that the U.S. has a healthcare system that cannot adequately
serve all economic classes of the American public. In contrast, though India has the proper facilities and
professionals, there are concerns regarding malpractice litigation, postoperative care, and possible negative
effects on the Indian public. Having given consideration to all affected constituencies, it seems that the
outsourcing of medical procedures is in the best interest of lower- and middle-class Americans as well
as medical professionals in India. In reality, though medical tourism is receiving much attention, it will
most likely not be a pressing concern for the American market in the near future. A widening discrepancy
in the Indian public may, however, be cause for nearer concern. This new trend does foreshadow a push
for more preventative changes in the business of U.S. healthcare, such as the development of information
technology specific to the growing international healthcare market. Whereas, it will initially be beneficial
to send patients abroad, with the evolution of technology, the latter ideal will instead be to have medical
professionals abroad that care for patients located in the U.S.
Chapter IX
The Use of Outsourcing as a Business Strategy: A Case Study..........................................................167
Ram B. Misra, Montclair State University, USA
In this chapter, we discuss how a leading telecommunications software development company went
about outsourcing some phases of the system development life cycle (SDLC) of network management
systems in order to achieve both the short-term tactical goals as well as the long-term strategic goals. We
present a framework consisting of seven factors that should be used by companies using outsourcing as a
business strategy. This framework was used to analyze the outsourcing practices used by this company.
The framework includes the driving forces for offshore outsourcing, the selection process of outsourcing
vendors and the infrastructure (communication links, hardware, software, and organizational structure)
that was needed to insure that the outsourced work meets company s internal quality requirements,
which are derived from CMM5 and ISO9001 certifications. We also present the challenges of making
these things happen, what worked well, and the lessons learned.
Section IV
National and Societal Implications
Chapter X
Changing IT Skills: The Impact Of Sourcing Strategies On In-House Capability
Requirements......................................................................................................................................180
Christine V. Bullen, Stevens Institute of Technology, USA
Thomas Abraham, Kean University, USA
Kevin Gallagher, Northern Kentucky University, USA
Kate M. Kaiser, Marquette University, USA
Judith Simon, University of Memphis, USA
The increasingly global sourcing of IT work and other socio-economic trends are prompting fundamental
changes in the availability of IT skills needed in both client and vendor organizations. This chapter
analyzes the results of a survey conducted in 2005, in which IT executives were asked to describe the
skills they felt were critical to keep in house now and in 2008. The top ten current skills included three
in project management, five in business domain and three in technical. In 2008, the top five emerging
skills are almost all business domain while the top five exiting skills are all technical. Our findings
indicate that the critical skills to keep in-house are primarily client-facing skills, even when they are
technical. Findings indicate that IT professionals need to have a balance that demonstrates a foundation
in the traditional hard skills and experience with softer business-oriented skills.
Chapter XI
New Trends in Global Offshore Outsourcing: A Comparative Assessment of India
and China............................................................................................................................................203
Suresh Sharma, JS3 Global, LLC
Yuanyuan Chen, JS3 Global, LLC
With the rapid rise of globalization, the challenge of global outsourcing today is not Why and what to
outsource? but How to outsource? The theme today is Let us do it right the first time. The barriers to
outsourcing are companies own mind-sets, local regulations, and the robustness of their internal processes.
The domain knowledge in many industries has gone fully global. Likewise, new product development
and R D must be global in order to compete in emerging economies and to tap into global talent to
compete globally. Software development and IT outsourcing can be done from anywhere, virtually! The
availability of mobile technology and superior digital infrastructure is giving way to distributed IT,
making homes as the future nodes of outsourcing factories. China and India have emerged as the major
leaders in this industry due to their capacity, talent pool, and lower cost structure. This chapter compares
their strengths, challenges, and growth potential based on the authors own hands-on experience of doing
outsourcing in these countries for the past 15 years.
Chapter XII
The Role of Prisons in Offshoring......................................................................................................215
Whitney Hollis, University of Arizona, USA
Outsourcing and offshoring are popular (and often controversial) trends in American business, yet not all
outsourcing is done in foreign countries; many jobs are being sent to prisons, where inmates can provide
low-cost, locally based labor. This trend has extended from a role in manufacturing to white-collar jobs,
like telemarketing. This chapter analyzes this type of outsourcing in terms of the costs and benefits for
business and consumers, as well as the social implications.
Section V
Collaboration and the 24-Hour Knowledge Factory
Chapter XIII
The Role of Information Resource Management in Enabling the 24-Hour Knowledge
Factory................................................................................................................................................226
Satwik Seshasai, International Business Machines (IBM) Corp., USA
Massachusetts Institute of Technology, USA
Amar Gupta, University of Arizona, USA
The term 24-Hour Knowledge Factory connotes a globally distributed work environment in which
teammates work on a project around the clock. The 24-Hour Knowledge Factory is a special case of a
globally distributed team in which the different teams work on a sequential basis that has been clearly
defined in advance. Whereas a manufactured item was the end product in the case of the factory which
emerged as a consequence of the industrial revolution, knowledge-based services and knowledge-based
products are the end deliverables in the case of the current information revolution; hence, the term 24-
Hour Knowledge Factory. Work can be decomposed by task style or by organizational style, and allows
for greater specialization of workers. A case study from IBM details surprising differences between
colocated and distributed teams, and leads to a future state analysis for organizations seeking to study
or implement the 24-Hour Knowledge Factory.
Chapter XIV
Outsourcing and Multi-Party Business Collaborations Modeling......................................................250
Lai Xu, Utrecht University, The Netherlands
To remain competitive, enterprises have to integrate their business processes with their customers,
suppliers, and business partners. Increasing collaboration includes not only a global multi-national
enterprise, but also an organization with its relationship to and business processes with its business
partners. Standards and technologies permit business partners to exchange information, collaborate,
and carry out business transactions in a pervasive Web environment. There is however still very limited
research activity on modeling multi-party business collaboration underlying semantics. In this chapter,
we demonstrate that an in-house business process has been gradually outsourced to third parties and
analyze how task delegations cause commitments between multiple business parties. Finally, we provide
process semantics for modeling multi-party collaborations.
Chapter XV
Hybrid Offshoring: Composite Personae and Evolving Collaboration Technologies........................270
Nathan Denny, University of Arizona, USA
Shivram Mani, Yahoo! Inc., USA
Ravi Sheshu Nadella, University of Arizona, USA
Manish Swaminathan, University of Arizona, USA
Jamie Samdal, University of Arizona, USA
Inspired by round-the-clock manufacturing, the 24-Hour Knowledge Factory endeavors to transform
the production of software and other intangibles into a process of continuous development. While the
concept of offshore software development is well established, few enterprises are currently able to develop
the same code artifacts around the clock. We discuss the benefits of applying the 24-Hour Knowledge
Factory to software development. We also present a representative scenario highlighting the problems of
asynchronous communication in current offshore software development practices. Further, we introduce
the notion of composite persona as a potential collaboration model within the 24-Hour Knowledge Factory
and explain its ability to mitigate problems arising from communicating across cultures, languages, and
time zones. Finally, we present a suite of new collaboration tools and techniques that are being developed
specifically for use by composite personae in the 24-Hour Knowledge Factory.
Chapter XVI
Agile Software Processes for the 24-Hour Knowledge Factory Environment...................................287
Nathan Denny, University of Arizona, USA
Igor Crk, University of Arizona, USA
Ravi Sheshu Nadella, University of Arizona, USA
The growing adoption of outsourcing and offshoring concepts is presenting new opportunities for
distributed software development. Inspired by the paradigm of round-the-clock manufacturing, the concept
of the 24-Hour Knowledge Factory (24HrKF) attempts to make similar transformations in the arena of
IS: specifically to transform the production of software and allied intangibles to benefit from the notion
of continuous development by establishing multiple collaborating sites at strategically selected locations
around the globe. As the sun sets on one site, it rises on another site with the day s work being handed
off from the closing site to the opening site. In order to enable such hand offs to occur in an effective
manner, new agile and distributed software processes are needed, as delineated in this chapter.
Section VI
Adaptation Paradigms for Academia and Industry
Chapter XVII
Information Systems, Offshore Outsourcing, and Relevance in the Business School
Curriculum..........................................................................................................................................303
William J. Tastle, University of Iceland, Iceland
Ithaca College, USA
Bruce A. White, Quinnipiac University, USA
Arsaell Valfells, University of Iceland, Iceland
Peter Shackleton, Victoria University, Australia
Offshore outsourcing has been a growing phenomenon in recent years. Rarely will an IT professional
pick up a trade publication or journal without some article relating to outsourcing or offshore outsourcing.
This in turn raises the question for IS educators—what should we be doing to better prepare our graduates
for a future where offshore outsourcing is a reality? This chapter looks at the following topics as they
relate to IS curriculum matters for outsourcing: Offshore outsourcing and success factors, the skills
needed to effective manage offshore outsourcing, a look at offshore outsourcing and the IS2002 model
curriculum, suggested changes to IS2002 to incorporate offshore outsourcing education, and what skills
from IS2002 are vital in preparing students for the future.
Chapter XVIII
Innovative Technological Paradigms for Corporate Offshoring.........................................................321
Tapasya Patki, University of Arizona, USA
A. B. Patki, Department of Information Technology, India
Internet technology has impelled us to develop faith in the modern practices of business, commerce,
and trade. Offshoring has been viewed as a global phenomenon on the economic frontier. While new
technologies need to be framed, stopgap arrangements in the form of transient solutions to upgrade the
current systems are also desired. Newer regulations and multi-jurisdictional compliance have profound
impacts on the growth of outsourcing projects. The development of new technological solutions must
challenge the myth that legislation and statutory practices are the only possible mechanisms to counter the
unscrupulous activities in the context of outsourcing. A change in the outlook toward such methodologies
is essential to shed away the technological inertia and latency. This chapter opens up discussion issues
in the perspective of hardware and software requirements for efficient offshoring. The aim is to achieve
higher precision, protection, and throughput by applying core-computing techniques to the existing
practices of outsourcing.
Chapter XIX
Leveraging Knowledge Reuse and System Agility in the Outsourcing Era.......................................342
Igor Crk, University of Arizona, USA
Dane Sorensen, Raytheon Missile Systems, USA
Amit Mitra, TCS Global Consulting Practice, USA
Collaborative work groups that span multiple locations and time zones, or follow the sun, create a
growing demand for creating new technologies and methodologies that enable traditional spatial and
temporal separations to be surmounted in an effective and productive manner. The hurdles faced by
members of such virtual teams are in three key areas: differences in concepts and terminologies used by
the different teams; differences in understanding the problem domain under consideration; and differences
in training, knowledge, and skills that exist across the teams. These reasons provide some of the basis
for the delineation of new architectural approaches that can normalize knowledge and provide reusable
artifacts in a knowledge repository.
Compilation of References ..............................................................................................................363
About the Contributors...................................................................................................................395
Index...................................................................................................................................................405
|
| adam_txt |
Titel: Outsourcing and offshoring of professional services
Autor: Gupta, Amar
Jahr: 2008
Detailed Table of Contents
Foreword.xvii
Preface.xx
Acknowledgment.xxviii
Section I
Executive Highlight
Chapter I
Offshoring: The Transition from Economic Drivers Toward Strategic Global Partnership
and the 24-Hour Knowledge Factory.1
Amar Gupta, University of Arizona, USA
Satwik Seshasai, International Business Machines (IBM) Corp., USA
Massachusettes Institute of Technology, USA
Sourav Mukherji, The Indian Institute of Management, Bangalore
Auroop Ganguly, Oak Ridge National Laboratory, USA
The changing economic and labor conditions have motivated firms to outsource professional services
activities to skilled personnel in less expensive labor markets. This offshoring phenomenon is studied
from a political, economic, technological and strategic perspective. Next, an analytical model is developed
for achieving strategic advantage from offshoring based on global partnerships. The model studies the
impact of offshoring with respect to the complexity and strategic nature of the tasks and presents a
decision strategy for obtaining value through offshoring of increasingly complex tasks. The result is
an integrated "24-Hour Knowledge Factory" that is based on a sustainable global model rather than a
short term fiscal model. This 24-hour paradigm embodies the shift-style workforce that evolved for the
manufacturing sector during the Industrial Revolution and relies on a set of critical success factors in
the current environment. A case example is provided from IBM to illustrate these underlying critical
success factors.
Section II
Foundations and Frameworks
Chapter II
Evolving Relationship between Law, Offshoring of Professional Services, Intellectual
Property, and International Organizations.25
Amar Gupta, University of Arizona, USA
David A. Gantz, University of Arizona, USA
Devin Sreecharana, University of Arizona, USA
Jeremy Kreyling, University of Arizona, USA
This chapter covers four issues. First, it examines evolving international conventions to determine whether
countries, especially developed countries, can take any steps to inhibit offshoring with the objective of
protecting jobs in their respective countries. Second, it looks at statistics from independent sources to
see if outsourcing exceeds insourcing, or vice versa, in the case of the U.S. Third, it looks at trends in
outsourcing in the legal arena. Fourth, it looks at the intellectual property aspects of outsourcing and
presents a long-term vision on how this difficult issue is likely to be addressed in the long-term.
Chapter III
Information Technology/Systems Offshore Outsourcing: Key Risks and Success Factors.50
MaheshS. Raisinghani, Texas Woman's University, USA
Brandi Starr, Texas Woman's University, USA
Blake Hickerson, Texas Woman's University, USA
Marshelle Morrison, Texas Woman's University, USA
Michael Howard, Texas Woman's University, USA
The offshore outsourcing of information technology and information systems (IT/IS) is being increasingly
practiced among firms that are focusing on core competencies and cost-effectiveness. With the increase
in offshore IT/IS operations, a growing number of companies are encountering negative experiences
and unpredicted results. The analysis performed in this chapter reveals the possible risks and perceived
success factors of companies outsourcing IT/IS operations offshore. The major points of interest are
operational and strategic risks; legal contracts; cultural, security, and financial issues; and noted success
factors by companies that participate in offshore outsourcing. The research indicates the importance of
risk identification and the formulation of strategic plans that include preventive, detective, and corrective
control methods of implementation and evaluation. Effective methods and metrics for measuring the
success or failure of IT/IS offshore outsourcing operations is expected to be a continuing development
with the increasing growth of this phenomenon.
Chapter IV
A Paradigmatic and Methodological Review of Research in Outsourcing.71
Vanita Yadav, Management Development Institute, India
Rajen K. Gupta, Management Development Institute, India
Due to the growing academic and practitioner interest in the field of outsourcing, there is a need to do a
comprehensive assessment and synthesis of research activities to date. This chapter addresses this need and
examines the academic literature on information systems outsourcing and business process outsourcing
using a paradigmatic and methodological lens. The objective of this chapter is fourfold. Firstly, it examines
the status of outsourcing research from 1995 to 2005 in eight leading academic journals, to compare
the current research trends with past research directions in terms of methodologies applied. Secondly, it
analyzes the research paradigms adopted in these research papers using the Operations Research Paradigm
framework. Thirdly, it compares and contrasts the outsourcing research work published in three leading
European journals with the work published in three leading American journals. Finally, it uncovers the
implications of this study and the directions for future research.
Chapter V
An Outsourcing Acceptance Model: An Application of TAM to Application Development
Outsourcing.89
John "Skip" Benamati, Miami University, USA
T.M. Rajkumar, Miami University, USA
The use of outsourcing is expanding rapidly. This chapter empirically tests a model of application
development outsourcing acceptance based on the technology acceptance model (TAM). TAM-suggested
perceived usefulness and ease of use mediate the effects of other variables on users' attitudes towards
a technology. The model tested in this chapter suggests that perceived usefulness and ease of use of
outsourcing mediate the effects of the external environment, prior outsourcing relationships, and risks on
decision-makers' attitude toward application development outsourcing. One hundred and sixty respondents
to a survey sent to 3000 IT decision makers provided data to confirm the applicability of TAM and the
influences of these external variables. Support for applying TAM in this alternative context was found.
Three sub-dimensions of risk, project management, relationship, and employee risk emerged. Project
management and employee risks along with prior relationships were found to significantly influence
decision maker perceptions about application development outsourcing.
Section III
Sectoral Applications and Case Studies
Chapter VI
Outsourcing in the Healthcare Industry: Information Technology, Intellectual Property and
Allied Aspects.115
Amar Gupta, University of Arizona, USA
Raj K. Goyal, VA Boston Health Care System, USA
Keith A. Joiner, University of Arizona, USA
SanjaySaini, Harvard Medical School, USA
The healthcare industry is being impacted by advances in information technology in four major ways:
first, a broad spectrum of tasks that were previously done manually can now be performed by computers;
second, some tasks can be outsourced to other countries using inexpensive communications technology;
third, longitudinal and societal healthcare data can now be analyzed in acceptable periods of time; and
fourth, the best medical expertise can sometimes be made available without the need to transport the
patient to the doctor or vice versa. The healthcare industry will increasingly use a portfolio approach
comprised of three closely-coordinated components seamlessly interwoven together: healthcare tasks
performed by humans on-site; healthcare tasks performed by humans off-site, including tasks performed
in other countries; and healthcare tasks performed by computers without direct human involvement.
Finally, this chapter deals with intellectual property and legal aspects related to the three-pronged
healthcare services paradigm.
Chapter VH
Offshoring Entertainment and Media to India.142
Alyssa D. Schwender, Lions Gate Entertainment, USA
Christopher J. M. Leet, Intuit Corporation, USA
This chapter explores opportunities for the offshoring of assorted processes in the global entertainment
and media industry. Currently, this industry is experiencing incredible growth, much of it spurred by the
increased digitalization of media production around the world. The rise of digital technology, faster global
connectivity, an increased quality of downloads have been the driving factors behind this growth. The
filmed entertainment, recorded music, and television networks and distribution sectors of the industry will
undergo major technological changes in the coming years. These changes will provide opportunities for
entrepreneurs to enter the global media industry. Using venture funding, startups are utilizing offshoring
concepts to create a more efficient cost-effective means of doing business. The Asia Pacific market is
currently the fastest-growing region, with India leading the way with offshoring of film functions. The
industry will see a change from large media conglomerates as the sole owners of all media to smaller
companies offering services, in which they specialize, to these larger companies, as digital media makes
it easily accessible around the globe.
Chapter VIII
Outsourcing of Medical Surgery and the Evolution of Medical Telesurgery.157
ShawnaSando, University of Arizona, USA
With rising and often unreasonable costs in the U.S. healthcare system, Americans are becoming more
inclined to seek cheaper alternatives. In some cases, Americans do not have to search for such alternatives
on their own because their employers are offering them incentives to receive care from a foreign institution.
Employees can go abroad to countries, such as India, in order to receive medical services for prices that
are at least half of what the procedure would cost in the U.S. This emerging market seems to be beneficial
to all involved except U.S. healthcare providers; however, this outsourcing of healthcare services sends
a powerful international message. It seems that the U.S. has a healthcare system that cannot adequately
serve all economic classes of the American public. In contrast, though India has the proper facilities and
professionals, there are concerns regarding malpractice litigation, postoperative care, and possible negative
effects on the Indian public. Having given consideration to all affected constituencies, it seems that the
outsourcing of medical procedures is in the best interest of lower- and middle-class Americans as well
as medical professionals in India. In reality, though medical tourism is receiving much attention, it will
most likely not be a pressing concern for the American market in the near future. A widening discrepancy
in the Indian public may, however, be cause for nearer concern. This new trend does foreshadow a push
for more preventative changes in the business of U.S. healthcare, such as the development of information
technology specific to the growing international healthcare market. Whereas, it will initially be beneficial
to send patients abroad, with the evolution of technology, the latter ideal will instead be to have medical
professionals abroad that care for patients located in the U.S.
Chapter IX
The Use of Outsourcing as a Business Strategy: A Case Study.167
Ram B. Misra, Montclair State University, USA
In this chapter, we discuss how a leading telecommunications software development company went
about outsourcing some phases of the system development life cycle (SDLC) of network management
systems in order to achieve both the short-term tactical goals as well as the long-term strategic goals. We
present a framework consisting of seven factors that should be used by companies using outsourcing as a
business strategy. This framework was used to analyze the outsourcing practices used by this company.
The framework includes the driving forces for offshore outsourcing, the selection process of outsourcing
vendors and the infrastructure (communication links, hardware, software, and organizational structure)
that was needed to insure that the outsourced work meets company's internal quality requirements,
which are derived from CMM5 and ISO9001 certifications. We also present the challenges of making
these things happen, what worked well, and the lessons learned.
Section IV
National and Societal Implications
Chapter X
Changing IT Skills: The Impact Of Sourcing Strategies On In-House Capability
Requirements.180
Christine V. Bullen, Stevens Institute of Technology, USA
Thomas Abraham, Kean University, USA
Kevin Gallagher, Northern Kentucky University, USA
Kate M. Kaiser, Marquette University, USA
Judith Simon, University of Memphis, USA
The increasingly global sourcing of IT work and other socio-economic trends are prompting fundamental
changes in the availability of IT skills needed in both client and vendor organizations. This chapter
analyzes the results of a survey conducted in 2005, in which IT executives were asked to describe the
skills they felt were critical to keep in house now and in 2008. The top ten current skills included three
in project management, five in business domain and three in technical. In 2008, the top five emerging
skills are almost all business domain while the top five exiting skills are all technical. Our findings
indicate that the critical skills to keep in-house are primarily client-facing skills, even when they are
technical. Findings indicate that IT professionals need to have a balance that demonstrates a foundation
in the traditional "hard skills" and experience with "softer" business-oriented skills.
Chapter XI
New Trends in Global Offshore Outsourcing: A Comparative Assessment of India
and China.203
Suresh Sharma, JS3 Global, LLC
Yuanyuan Chen, JS3 Global, LLC
With the rapid rise of globalization, the challenge of global outsourcing today is not "Why and what to
outsource?" but "How to outsource?" The theme today is "Let us do it right the first time." The barriers to
outsourcing are companies' own mind-sets, local regulations, and the robustness of their internal processes.
The domain knowledge in many industries has gone fully global. Likewise, new product development
and R D must be global in order to compete in emerging economies and to tap into global talent to
compete globally. Software development and IT outsourcing can be done from anywhere, virtually! The
availability of mobile technology and superior digital infrastructure is giving way to "distributed IT,"
making "homes" as the future nodes of outsourcing factories. China and India have emerged as the major
leaders in this industry due to their capacity, talent pool, and lower cost structure. This chapter compares
their strengths, challenges, and growth potential based on the authors' own hands-on experience of doing
outsourcing in these countries for the past 15 years.
Chapter XII
The Role of Prisons in Offshoring.215
Whitney Hollis, University of Arizona, USA
Outsourcing and offshoring are popular (and often controversial) trends in American business, yet not all
outsourcing is done in foreign countries; many jobs are being sent to prisons, where inmates can provide
low-cost, locally based labor. This trend has extended from a role in manufacturing to white-collar jobs,
like telemarketing. This chapter analyzes this type of outsourcing in terms of the costs and benefits for
business and consumers, as well as the social implications.
Section V
Collaboration and the 24-Hour Knowledge Factory
Chapter XIII
The Role of Information Resource Management in Enabling the 24-Hour Knowledge
Factory.226
Satwik Seshasai, International Business Machines (IBM) Corp., USA
Massachusetts Institute of Technology, USA
Amar Gupta, University of Arizona, USA
The term 24-Hour Knowledge Factory connotes a globally distributed work environment in which
teammates work on a project around the clock. The 24-Hour Knowledge Factory is a special case of a
globally distributed team in which the different teams work on a sequential basis that has been clearly
defined in advance. Whereas a manufactured item was the end product in the case of the factory which
emerged as a consequence of the industrial revolution, knowledge-based services and knowledge-based
products are the end deliverables in the case of the current information revolution; hence, the term 24-
Hour Knowledge Factory. Work can be decomposed by task style or by organizational style, and allows
for greater specialization of workers. A case study from IBM details surprising differences between
colocated and distributed teams, and leads to a future state analysis for organizations seeking to study
or implement the 24-Hour Knowledge Factory.
Chapter XIV
Outsourcing and Multi-Party Business Collaborations Modeling.250
Lai Xu, Utrecht University, The Netherlands
To remain competitive, enterprises have to integrate their business processes with their customers,
suppliers, and business partners. Increasing collaboration includes not only a global multi-national
enterprise, but also an organization with its relationship to and business processes with its business
partners. Standards and technologies permit business partners to exchange information, collaborate,
and carry out business transactions in a pervasive Web environment. There is however still very limited
research activity on modeling multi-party business collaboration underlying semantics. In this chapter,
we demonstrate that an in-house business process has been gradually outsourced to third parties and
analyze how task delegations cause commitments between multiple business parties. Finally, we provide
process semantics for modeling multi-party collaborations.
Chapter XV
Hybrid Offshoring: Composite Personae and Evolving Collaboration Technologies.270
Nathan Denny, University of Arizona, USA
Shivram Mani, Yahoo! Inc., USA
Ravi Sheshu Nadella, University of Arizona, USA
Manish Swaminathan, University of Arizona, USA
Jamie Samdal, University of Arizona, USA
Inspired by round-the-clock manufacturing, the 24-Hour Knowledge Factory endeavors to transform
the production of software and other intangibles into a process of continuous development. While the
concept of offshore software development is well established, few enterprises are currently able to develop
the same code artifacts around the clock. We discuss the benefits of applying the 24-Hour Knowledge
Factory to software development. We also present a representative scenario highlighting the problems of
asynchronous communication in current offshore software development practices. Further, we introduce
the notion of composite persona as a potential collaboration model within the 24-Hour Knowledge Factory
and explain its ability to mitigate problems arising from communicating across cultures, languages, and
time zones. Finally, we present a suite of new collaboration tools and techniques that are being developed
specifically for use by composite personae in the 24-Hour Knowledge Factory.
Chapter XVI
Agile Software Processes for the 24-Hour Knowledge Factory Environment.287
Nathan Denny, University of Arizona, USA
Igor Crk, University of Arizona, USA
Ravi Sheshu Nadella, University of Arizona, USA
The growing adoption of outsourcing and offshoring concepts is presenting new opportunities for
distributed software development. Inspired by the paradigm of round-the-clock manufacturing, the concept
of the 24-Hour Knowledge Factory (24HrKF) attempts to make similar transformations in the arena of
IS: specifically to transform the production of software and allied intangibles to benefit from the notion
of continuous development by establishing multiple collaborating sites at strategically selected locations
around the globe. As the sun sets on one site, it rises on another site with the day's work being handed
off from the closing site to the opening site. In order to enable such hand offs to occur in an effective
manner, new agile and distributed software processes are needed, as delineated in this chapter.
Section VI
Adaptation Paradigms for Academia and Industry
Chapter XVII
Information Systems, Offshore Outsourcing, and Relevance in the Business School
Curriculum.303
William J. Tastle, University of Iceland, Iceland
Ithaca College, USA
Bruce A. White, Quinnipiac University, USA
Arsaell Valfells, University of Iceland, Iceland
Peter Shackleton, Victoria University, Australia
Offshore outsourcing has been a growing phenomenon in recent years. Rarely will an IT professional
pick up a trade publication or journal without some article relating to outsourcing or offshore outsourcing.
This in turn raises the question for IS educators—what should we be doing to better prepare our graduates
for a future where offshore outsourcing is a reality? This chapter looks at the following topics as they
relate to IS curriculum matters for outsourcing: Offshore outsourcing and success factors, the skills
needed to effective manage offshore outsourcing, a look at offshore outsourcing and the IS2002 model
curriculum, suggested changes to IS2002 to incorporate offshore outsourcing education, and what skills
from IS2002 are vital in preparing students for the future.
Chapter XVIII
Innovative Technological Paradigms for Corporate Offshoring.321
Tapasya Patki, University of Arizona, USA
A. B. Patki, Department of Information Technology, India
Internet technology has impelled us to develop faith in the modern practices of business, commerce,
and trade. Offshoring has been viewed as a global phenomenon on the economic frontier. While new
technologies need to be framed, stopgap arrangements in the form of transient solutions to upgrade the
current systems are also desired. Newer regulations and multi-jurisdictional compliance have profound
impacts on the growth of outsourcing projects. The development of new technological solutions must
challenge the myth that legislation and statutory practices are the only possible mechanisms to counter the
unscrupulous activities in the context of outsourcing. A change in the outlook toward such methodologies
is essential to shed away the technological inertia and latency. This chapter opens up discussion issues
in the perspective of hardware and software requirements for efficient offshoring. The aim is to achieve
higher precision, protection, and throughput by applying core-computing techniques to the existing
practices of outsourcing.
Chapter XIX
Leveraging Knowledge Reuse and System Agility in the Outsourcing Era.342
Igor Crk, University of Arizona, USA
Dane Sorensen, Raytheon Missile Systems, USA
Amit Mitra, TCS Global Consulting Practice, USA
Collaborative work groups that span multiple locations and time zones, or "follow the sun," create a
growing demand for creating new technologies and methodologies that enable traditional spatial and
temporal separations to be surmounted in an effective and productive manner. The hurdles faced by
members of such virtual teams are in three key areas: differences in concepts and terminologies used by
the different teams; differences in understanding the problem domain under consideration; and differences
in training, knowledge, and skills that exist across the teams. These reasons provide some of the basis
for the delineation of new architectural approaches that can normalize knowledge and provide reusable
artifacts in a knowledge repository.
Compilation of References .363
About the Contributors.395
Index.405 |
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| spellingShingle | Outsourcing and offshoring of professional services business optimization in a global economy Externalisation à l'étranger ram Externalisation ram Offshore outsourcing Contracting out Outsourcing (DE-588)4127582-2 gnd |
| subject_GND | (DE-588)4127582-2 (DE-588)4143413-4 |
| title | Outsourcing and offshoring of professional services business optimization in a global economy |
| title_auth | Outsourcing and offshoring of professional services business optimization in a global economy |
| title_exact_search | Outsourcing and offshoring of professional services business optimization in a global economy |
| title_exact_search_txtP | Outsourcing and offshoring of professional services business optimization in a global economy |
| title_full | Outsourcing and offshoring of professional services business optimization in a global economy Amar Gupta |
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| title_full_unstemmed | Outsourcing and offshoring of professional services business optimization in a global economy Amar Gupta |
| title_short | Outsourcing and offshoring of professional services |
| title_sort | outsourcing and offshoring of professional services business optimization in a global economy |
| title_sub | business optimization in a global economy |
| topic | Externalisation à l'étranger ram Externalisation ram Offshore outsourcing Contracting out Outsourcing (DE-588)4127582-2 gnd |
| topic_facet | Externalisation à l'étranger Externalisation Offshore outsourcing Contracting out Outsourcing Aufsatzsammlung |
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