case study offshore outsourcing

Misra, A.K., “An influence model for factors in outsourced software maintenance”. On the other hand, the Philippine group head (iP3) did not feel or admit that there would be major problems which would be due to the cultural differences. Nevertheless, overall, the Latvian group head (iL3) felt that the cooperation was easy and was proceeding well. The offshore-outsourcing choice is viewed as a source of factory closures and job losses in many developed countries including Canada. The Indian group member (iI3); however, did not identify any problems; instead he considered the production center to be able to fulfill all the set requirements. h�b``c``������v�01G��30j0�3$q���`�P�p�qEs[ׅ a��f��1hM``RP3= 3��Kb0���,��PQF9� �L� The case study strategy was adopted in this study. For some it was necessary to define precisely what ought to be done, and when and what was expected. Even though that the Finnish persons did have named substitutes, they did not necessarily know all their tasks (pT-I6,iI3) and they did not have access to all critical emails during the previous 11 months (pT-I7,iI3). This was a problem especially in the beginning of the service. Other industries that deal with sensitive information, such as banking and government, have experienced success with offshore outsourcing and keeping their data secure. Indians do not have long vacations, but they do have several separate public free days and optional vacations. C. Seybold, and R.K. Keller, “Aligning software maintenance to the offshore reality”, in: J.W. Outsourcing offshore transferred responsibility for system upgrades, people management and service delivery. The Finnish long summer break caused troubles to the Indian workers. They were also perfectionists. Telecommunications Industry Case Study: Offshore Team Migration. endstream endobj startxref Some of the employees brought forth boldly new solutions, whereas others implemented only what had been specifically requested. Kobelsky, and M.A. E.g., they were not always able to make proper summaries. © 2020 Springer Nature Switzerland AG. A related problem was that the customers sometimes wondered why they were paying for a service also when there were no open; i.e. One minor problem was that some employees in the production center may have incorrectly assumed that the Finnish persons working for the supplier were customers (pO-P1,iP1). Outsourcing means using factors which are external to an organization to perform its functions whereas offshore outsourcing relies on using foreign resources to perform those functions. They did not necessarily pay attention to the issues which self-evidently should have been checked (pC-I9,iI1). According to the Indian group member, working only in one service becomes boring (pC-I12,iI3); Indian engineers wanted primarily to be involved in creating something new instead of fixing something old (pC-I13,iI1). Consequently, it was harder to recognize problems in the distributed case (pD-P2,iP1). Sometimes, the Latvian employees did give a too positive view of the progress of their work (pC-L3,iL1). 62 0 obj <>/Filter/FlateDecode/ID[<04120C4542B21147A0152319C3ACC631><3B2F9B23EC86524BABCC51F9C9724CDB>]/Index[38 38]/Info 37 0 R/Length 109/Prev 89666/Root 39 0 R/Size 76/Type/XRef/W[1 3 1]>>stream However, this was not always a true statement and a challenge was to get correct information about the actual problems (pC-P2,iP2). The appendices provide the details of the gathered data related to the studied four themes. Without a good fit, any offshore outsourcing efforts, to Vietnam or any other country, may be doomed to failure from the outset. Infynita Case Studies: A live projects case studies of Infynita. Offshore India Data Entry is a renowned service provider in India. Dwivedi, “A multi-disciplinary profile of IS/IT outsourcing research”. The offshore-outsourcing choice is viewed as a source of factory closures and job losses in many developed countries including Canada. Sobol, S. Hanaoka, T. Shimada, T. Saarinen, T. Salmela, and A.P.J. In some cases, companies choose to leverage their outsourcing partners to establish development centers in remote locations. Iacovou, and R. Nakatsu, “A risk profile of offshore-outsourced development projects”. pp 137-147 | That problem, however, did not mean that the Latvians would give too much technical details, but the Finns sometimes did not give them enough (pC-L10,IL3). His view was that the relation was not like a normal customer-consultant relation, but a more profound one. The running numbers differentiate the identified items from each other within each theme and country. According to the Latvian group head (iL3) the national festivals caused problems since after returning to work there may have been 3-4 times more service requests to be handled (pT-L2,iL3). The services have been outsourced by a supplier organization which has been based in Finland. Practically always, when a Philippine was asked how his or her work was proceeding, the answer was “extremely well”. The Finnish coordinator noticed that it is necessary that more work can be constantly transfered to be performed by the Indian employees for that he himself could instead meet new challenges (pD-I2,sD-I4,iI1). Lacity, “A US client’s learning from outsourcing IT work offshore”. All the interviewees related to the Philippine production center (iP1,iP2,iP3) regarded the customer relation as being excellent. Especially, it occasionally was so that the customer expected and demanded much from the persons who were not being offshored and who thereby were relatively expensive and scarce resources. We are the best outsourcing suppliers of various services such as data entry services, market research and analysis, scanning and indexing, virtual assistance and much more. Case Studies | Offshore Recruitment Services | Outsourcing. Instead, they acknowledged the importance of the end users. We have conducted an exploratory case study of outsourcing IS support services. They were looking at expanding their India operations and Flatworld bagged the contract and delivered lucrative call center offshore outsourcing services. The focus is a case study of software offshore outsourcing from … One of the problems for the Philippine group head was that in some cases it was not clear who had the responsibility over specific tasks (pD-P5,iP3). On the other hand, in some cases Indian employees tended to avoid risks excessively (pC-I7,iI1) in which cases they focused heavily on meeting the deadlines. Indians also tended to have too much optimism and indifference towards their tasks (pC-I3,iI2). The primary problem in the distributed work was that even though the formal responsibility of completing the work was in Finland, the Finnish persons did not have full control over those who were doing the actual work (pD-L1,iL1). Since the end-users were dispersed, the Latvians considered the location from where the service was provided as being inconsequential. Main parts of its customer support services have been allocated to so-called production centers, which have been located in three countries; Latvia, India, and the Philippines. This problem was increased by the different timings for the lunch breaks (pT-I2,iI1). Ecommerce Outsourcing; Offshore Staffing; Company; Our Work; Resources. Over 10 million scientific documents at your fingertips. S.-L. Järvenpää, and J.Y. There were 74 mentions of different kinds of confronted problems. E. Beulen, “Managing an IT-outsourcing partnership in Asia. Your Case Study organization’s CEO says they would like to “outsource their ICT” and asks to you to “make it happen”; this includes any existing systems as well as new systems. M. Gylling, J. Heikkilä, K. Jussila, M. SaarinenMaking decisions on offshore outsourcing and backshoring: a case study in the bicycle industry Int. Difficulties in knowing what the customers’ specific intentions were may have related to the fact that the customers sometimes tried; in this context, to obtain information primarily only in order to compare the supplier to other Asian information technology suppliers (pO-I4,iI1). The policies of the company were followed differently in India and in Finland. Unlike the Finns, the Latvians had their vacations in smaller pieces throughout the year. Mao, “Operational capabilities development in mediated offshore software services models”. The Latvian and Finnish times zones are the same. J. Dibbern, T. Goles, R. Hirschheim, and B. Jayatilaka, “Information systems outsourcing: A survey and analysis of the literature”. The empirical data gathering has focused on revealing problems in the outsourcing practices. Generally, Latvian employees tended to come to the working place later and also to leave from there later than the Finns. A. Braun, “A framework to enable offshore outsourcing”, in: L. Kuivanen, and N. Nahar, “Vietnam as an emerging destination for offshore outsourcing of software development for Finnish companies: A conceptual perspective”, in: N. Matloff, “Offshoring: What can go wrong?”. Outsourcing is less attractive in the case of processes with moderate or high structural risk; here, other forms of governance, such as joint ventures and captive centers, become better options. The problems which were confronted related to the Indian production center included the following: Customers’ suspicions regarding whether they were given a truthful description of the production (pO-I1,iI1), customers’ prejudices about Indian work having a lower quality than Finnish work (pO-I2,iI2) and that the service which was produced offshore required overall increased time for managing the customer relations (pO-I3,iI2). They usually noticed only after the deadline that they after all were not capable of solving the problem (pC-I5,iI2). Since the customer was aware of the relatively low expenditures of the offshore production, the customer could impose price pressures to the supplier (pO-L5,iL1). The Philippine production center had the largest difference to the Finnish time; 6 h. Unlike the other services, that service produced by the center was provided 24 h a day in three shifts. How CuriosityStream Reached Great Success via Hiring Remote Senior Developers. But in most cases, it’s about engaging the contractor based on “fixed price” model or “actual work”. Cost: Labor costs in Vietnam compare very favorably to other potential outsourcing destinations. Featured Case Studies. Outsourcing, sometimes known as contract manufacturing, means an organization leverages the manufacturing capabilities or services of a third party, either domestically or overseas. This did not cause problems. This caused them e.g. Lack of proactivity was sometimes viewed as a weakness of some of the Latvians (pC-L2,iL1). Offshore outsourcing to vendors in foreign countries causes unique challenges which need to be understood and managed effectively. ` �Q The Finnish coordinator of the Indian service revealed many typical problems. That attitude and interest was natural since the offshore outsourcing was then still a relatively new model of production (iP2). Occasionally persons who were not communicating face-to-face revealed more readily concerns which were not relevant (pO-L4,iL2). Organizations won’t necessarily offshore or outsource the entirety of their production operation. The Finns had to tell them precisely what kinds of answers were expected (pC-L9,iL3). Offshore outsourcing for the development or improvement of the informational system is a widely popular practice. View Case Study However, due to the former Soviet influence, the Latvian business culture was generally not optimally inclined to service (pC-L1,iL2); Latvian employees could sometimes be a bit blunt. When they noticed a problem they assumed that they were capable of solving it and let time pass (pC-I4,iI2). Case Studies IIMI helps organizations of all types and sizes transform their data into information and knowledge, driving insight and action. Cite as. He also mentioned that the Finns did not master the English language particularly well (pC-I11,iI3). Now two top academics reveal the principles that should guide CIOs. The Finnish group head stated that a natural problem related to the distributed work was that non-local persons could not be met (pD-P1,iP1). Krishnan, “The role of software processes and communication in offshore software development”. “Managing cross-cultural issues in global software outsourcing”. The Philippines appeared to have a cultural need to please others; especially the involved Finns (iP2). S.S. Bharadwaj, K.B.C. ... South Africa has won both the National and European Outsourcing Association Offshoring Destination of the Year awards for 2012 and 2013 respectively. The Philippine group head mentioned; as a former problem, obscurities in service during vacations (pT-P1,iP3). 92-100 Article Download PDF View Record in Scopus Google Scholar As the volume of customers increased, they began to experience a range of issues with business continuity, staff turnover, and customer service. The paying was expected to be based on the quaranteed availability of the service; instead of being based on the number of the completed given tasks. This was because the customer did not yet know the persons involved in the production center’s service group and was not aware of their working habits. Client Case Study. Suzanne Tapper ... Outsourcing Angel’s Technical Virtual Assistants assist Ashley in project management, web development and website maintenance tasks that are part of his daily operations. This in turn was very frustrating to the involved Finns. A. Gopal, T. Mukhopadhyay, and M.S. The Philippine chief (iP2) told that it was typical that the customers were very interested in who were involved in the service and who was doing what in the production center. According to the Indian chief the Indians and the Finns had different communication cultures. For this reason their own effort estimates contained typically too much slack and consequently the service based on those estimates could not be sold successfully (pC-I8,iI1). To understand decision making of offshore outsourcing and backshoring on the level of an individual SME firm, we present a case study which explores two consecutive decisions of first offshore outsourcing, and then backshoring of manufacturing operations in a business environment characterized by high uncertainty. The prefixes ‘p’ and ‘i’ stand for problem and interviewee respectively in the identifiers to be used. Case study is defined as “a strategy for doing research which involves an empirical investigation of a particular contemporary phenomenon within its real life context using multiple sources of evidence” (Robson, 2002, cited in Saunders et al., 2003, p. 93). The Finnish chief noticed that in the starting phase of the service the customer had a feeling of not having enough control (pO-L2,iL2). This phenomenon manifested itself; for example, when the customer showed interest in the supplier’s internal matters; such as numbers of the involved persons and their names (pO-I6,iI1,iI2), even though that the supplier had only made a contract that quaranteed that the problems, which the customer confronted (related to the used information system) were solved within the predefined time. Econ., 162 (2015), pp. The problems related to this main aspect were small. Not logged in Nevertheless, overall, the Latvian group head (iL3) regarded the outsourcing relation as being excellent. In those times they did not necessarily know with whom to communicate and how to obtain the needed information (pT-I5,iI3). This is a preview of subscription content. A. Gupta, “Deriving mutual benefits from offshore outsourcing”. This was inconsistent behaviour since the customer had earlier agreed on the criteria for paying. Currie, V. Weerakkody, and B. Desai, B., “Evaluating offshore IT outsourcing in India: Supplier and customer scenarios”, in: P. Bharati, “India’s IT services industry - A comparative analysis”. Part of Springer Nature. Rottman, and M.C. Controlling the workers too much is obviously not good for their working morals. The offshore outsourcing for the development or improvement of the informational system is a widely popular practice. They merely sent an email and if they did not receive an answer they tended to forget the whole thing (iI2). Lack of exact and clear instructions was a central problem (pD-I1,iI1) for correctly performing work tasks. You will use the information gathered in the previous assignments and will need to do your own research on outsourcing. Consequently, the coordinator regarded building trust as the most significant challenge in the beginning of the service (pO-L1,iL1). Outsourcing Case StudyJPMorgan's multi-location strategy: "The ETC has also led to the development of what JPMorgan calls a multi-location strategy, which looks beyond near-shore to offshore options. None of the group members in the production center neither had the best possible English skills (pC-L6,iL2). Customers had sometimes given negative feedback regarding the English language skills of the Philippine workers, but they were nevertheless very good as compared to the skills of the Indian employees in similar tasks (iP1). The production team had limited rights to some of the related information systems because of the data security rules set by the customer (pD-P6,iP3) and consequently; in these cases, the production group had to rely on the help from the Finnish workers. Issues with trying to streamline the work in-house were; people spread over 5 … Basically, the customers had to be given an impression that they had control and central information. Not affiliated The main problem of the Latvian employees was that they did not always have sufficient clearances and authorizations to work properly (pO-L7,iL3). In that case more interpretation of the messages was required to be potentially able to determine whether there were real problems. The exact working hours and days had been defined in the contract. Weekly meetings were often considered as a burden and the involved persons could not utilize them in full extent (pD-L4,iL2). Delocalization introduced some problems which were not met at all in Finland; these included massive natural catastrophes; such as typhoons and earthquakes (pD-P4,iP1). Khan, M. Niazi, and R. Ahmad, “Critical success factors for offshore software development outsourcing vendors: A systematic literature review”, in: F. Niessink, and H. van Vliet, “Software maintenance from a service perspective”. Overall, the outsourcing relation worked relatively well in the case of Latvia according to the Finnish coordinator, who regarded the customer relation to be very intimate and spontaneous (iL1). The Latvian group head (iL3) neither had noticed any major problems between the involved Finnish persons and the customers. Infynita Talk: Infynita Monthly Ezine for offshore Outsourcing related issues. %PDF-1.6 %���� K.W. The noticed cultural differences, however, included the issue that the Finns involved in this case were extremely straightforward, whereas the Philippines considered meticulously what they themselves were saying related to their work tasks (iP3). Consequently, detailed surveillance was necessary (pC-L4,iL1). Halemane, “Building a successful relationship in business process outsourcing”. Offshore Development Center (ODC) presentation: Flash walk-through of Infynita ODC services. Some of the end users had gotten used to service within a day and the relatively slow service after the national festivals caused some wonder among them. Due to the posed length limitations the actual transcribed citations cannot be reported here. Instead, they have been digested to a more compact form such that publishing is possible; by using the extra pages option of the target conference. The fundamental problem and risk of distributed projects was that communication was complicated (pD-I3,iI2). Sometimes, some of the Latvians were too timid to tell about the problems (pC-L5,iL1). We focus on the following issues: 38 0 obj <> endobj M. Alsudairi, and Y.K. According to the Finnish chief (iL2), there were very few identified cultural differences between Finland and Latvia. This stance was positively affected by the fact that the customers’ representatives had visited the Latvian production center multiple times. Call Center Offshore Outsourcing - A Case Study Flatworld transformed the sales process for a global software and services company based in the US. S. Ramingwong, and L. Ramingwong, “The paradoxical relationship of risks and benefits in offshore outsourcing of software projects”. The Indian group member (iI3) regarded the differing timings for vacations problematic (pT-I4,iI3). Applying the Scaled Agile Framework® in an Outsourcing Context: Infogain Case Study Introduction Scaled Agile Framework is applied by many geographically distributed organizations. The Indian time zone is +2,5 h as compared to Finland during summer and +3,5 h in other seasons. The current exploratory paper using qualitative case study methods presents experiences from four Canadian companies based in the province of Quebec. The Finnish coordinator (iL1) did not consider the Latvian timings of vacations as a problem. Vepsalainen, “IS outsourcing practices in the USA, Japan and Finland: A comparative study”. A problem for the Finnish coordinator was that the vacations of the Indian employees caused extra work (pT-I9,iI1). For example, when the Finns asked in a teleconference whether some task would be dealt with, the Latvians started to describe how the related problem can be solved by using many technical details in their descriptions (pC-L8,iL3). One of the problems was the relatively high change rate of the employees (pO-L6,iL1); especially, changing of key-persons tended to cause the customers to have concerns and to raise questions. The differences between the studied countries in terms of the typical outsourcing problems have been noted and the results compared to the most important related works. However, the Latvian group head (iL3) did not think that there would be any specific problems due to the applied distributed production model, since the end users were in any case dispersed throughout the world. Consumer Retail Industry Case Study: Excellence in Outsourcing Customer Service. The second case study discusses the practical issues in the offshore outsourcing of a time and materials custom software development project to multiple vendors, which involved simultaneous insourcing, onshore-outsourcing and offshore outsourcing. However, in some cases it was impossible to avoid strict control to ensure progress of the work (pD-L2,iL1). The public free days vary according to the religious groups. Case study-2 discusses the issues in the offshore-outsourcing of a time and materials custom software development project to multiple vendors, which involved simultaneous insourcing, onshore-outsourcing and offshore-outsourcing. The views of the Indian group member (iI3) differed from the views of those who worked in Finland, since according to him there were not many differences between the countries. endstream endobj 39 0 obj <. Contact Us. The supplier also had much implicit work to be completed related to developing the service. The directness of the Finns raised wonder among the Indian employees; and could even be considered very aggressive by them; especially in the beginning of the service (pC-I10,iI2). According to Willcocks, Fitzgerald & Feeny (2010), the following are some of the risks: Decline of in-organization expertise Decline of control Decline of intellectual capital Double sourcing Added responsibility of managing vendor relationships Additional risks attributable to offshore outsourcing Outsourcing for wrong reasons Dangers to data security Increased costs Hidden costs in contracts … View Case Study. H.M. Sneed, “Offering software maintenance as an offshore service”, in: © Springer International Publishing Switzerland 2015, New Trends in Networking, Computing, E-learning, Systems Sciences, and Engineering, Department of Computer Science and Information Systems, purpose of this study is to explore how knowledge integration can influence the success of software development in an offshore IT outsourcing project in an Indonesian context.In this study, a conceptual model was developed based on the concept of knowledge integration proposed by Balaji & Ahuja (2005). The geographical distribution caused also problems related to the communication channels and performance of the technical systems due to the long distance between the involved servers (pD-P8,iP3). Case Studies; Blog; Glossary; Careers +1 855 539 6256. This situation called for caution in order to avoid pressing anyone to work in such days (pT-I10,iI1). The involved Finns and Latvians had similar cultural mentalities (iL2). currently unresolved, defects (pO-I7,iI1). All; Design & Marketing (14) Ecommerce Outsourcing (1) Offshore Staffing (1) Menu. In this case study, we are going to talk about one such example. We have gathered qualitative data from nine experts via theme-based interviews. The customer had a tendency of attempting to have also such tasks performed by the supplier which were not part of a contract; even without extra compensation (pO-I8,iI1). IT support outsourcing case study of Sourcefit Philippines providing offshore systems & network support to a New York-based IT consulting firm. J. Apte, M.G. CuriosityStream … Distributed work was complicated in cases when the offshore group had not been provided with a sufficient clarification of its task (pD-L3,iL2). Prod. Case study: The relationship between a global outsourcing company and its global IT services supplier”, in: R. Dossani, and N. Denny, “The Internet’s role in offshored services: A case study of India”. Thereby, it was hard for them to reveal if they did not like something or if they had a differing opinion (pC-P1,iP2). C.L. The Indian group members had only very little interaction with the Finnish persons and no knowledge of the future plans of the offshore operation (iI3). S. Krishna, S. Sahay, and G. Walsham. E.g., sometimes the supplier did get an impression that the customer had not read the formal contract sufficiently meticulously (pO-I5,iI1). That is, the Latvians immersed in this case more into technical language and did not abstract conceptually as much due to their more technically oriented background. Case study objective Software and Services Outsourcing (SSO) refers to offshore services delivered through captive centres, joint ventures or independent third party consultants Software and Services Outsourcing (SSO) refers to offshore services delivered through captive centres, joint ventures or independent third party consultants We have conducted an exploratory case study of outsourcing IS support services. ‘O’ stands for Outsourcing, ‘D’ for Distributed work, ‘T’ for Scheduling and Timing, and ‘C’ for Cultural differences. E.g, the problems which were internal to the production center’s service group were necessarily not worth mentioning to the customers. Latvians were in this context usually technical developers, whereas Finns were consultants, coordinators, or chiefs. Another potential problem was that the customer was receiving contradictory messages regarding the fluency of the service (pO-L3,iL2). Also the vacations were regarded mainly as unproblematic (iI2). The customer also easily did get used to having such extra service. Overall, there were not many problems related to the outsourcing relation as such for this case. P. Bhatt, G. Shroff, C. Anantaram, and A.K. Therefore, it was sometimes difficult to find common time during the working hours (pT-I1,iI1) for the Finns and the Indians. Outsourcing healthcare services increases effectiveness and flexibility, allows concentration on core competency and lowers costs. Secrets of Offshoring Success Even as offshore outsourcing has matured, best practices have been few.

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