Distributed work was complicated in cases when the offshore group had not been provided with a sufficient clarification of its task (pD-L3,iL2). 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). For some it was necessary to define precisely what ought to be done, and when and what was expected. pp 137-147 | Some of the employees brought forth boldly new solutions, whereas others implemented only what had been specifically requested. Mao, “Operational capabilities development in mediated offshore software services models”. Call Center Offshore Outsourcing - A Case Study Flatworld transformed the sales process for a global software and services company based in the US. We focus in this paper on offshore outsourcing of information systems (ISs). These issues caused the business to reconsider their approach and assess whether outsourcing was the right option for their business. Sometimes, some of the Latvians were too timid to tell about the problems (pC-L5,iL1). This did not cause problems. Sobol, S. Hanaoka, T. Shimada, T. Saarinen, T. Salmela, and A.P.J. 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. Therefore, there obviously were no problems due to them. Ahmed, “Software maintenance outsourcing: Issues and strategies”. View Case Study ` �Q Part of Springer Nature. Infynita Case Studies: A live projects case studies of Infynita. Featured Case Studies. The Finnish coordinator (iL1) did not consider the Latvian timings of vacations as a problem. 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). This caused them e.g. That attitude and interest was natural since the offshore outsourcing was then still a relatively new model of production (iP2). Nevertheless, overall, the Latvian group head (iL3) regarded the outsourcing relation as being excellent. 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. His view was that the relation was not like a normal customer-consultant relation, but a more profound one. A problem for the Finnish coordinator was that the vacations of the Indian employees caused extra work (pT-I9,iI1). endstream endobj 39 0 obj <. PrimeOutsourcing offers various services for clients all over the world. In those times they did not necessarily know with whom to communicate and how to obtain the needed information (pT-I5,iI3). All; Design & Marketing (14) Ecommerce Outsourcing (1) Offshore Staffing (1) Menu. 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). © 2020 Springer Nature Switzerland AG. Consequently, detailed surveillance was necessary (pC-L4,iL1). This was a problem especially in the beginning of the service. S. Ramingwong, and L. Ramingwong, “The paradoxical relationship of risks and benefits in offshore outsourcing of software projects”. 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. Generally, Latvian employees tended to come to the working place later and also to leave from there later than the Finns. Consequently, it was harder to recognize problems in the distributed case (pD-P2,iP1). S. Krishna, S. Sahay, and G. Walsham. 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). Iacovou, and R. Nakatsu, “A risk profile of offshore-outsourced development projects”. For example, the Finnish group head (iP1) regarded the offshore production easy from the view-point of customer relations; the attitude was that the customer relation always had to be formed regardless; e.g., of the locales of the involved persons. 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. In some cases, companies choose to leverage their outsourcing partners to establish development centers in remote locations. h�bbd```b``�"���H��D������k��!��������)�6m-�44�YA$�d ���2�W!ą5����L@Wm� e("�30�� Lacity, “A US client’s learning from outsourcing IT work offshore”. A. Gupta, “Deriving mutual benefits from offshore outsourcing”. 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. R.E. 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). Since the end-users were dispersed, the Latvians considered the location from where the service was provided as being inconsequential. IT support outsourcing case study of Sourcefit Philippines providing offshore systems & network support to a New York-based IT consulting firm. We have conducted an exploratory case study of outsourcing IS support services. On this page you will find a selection of case studies that demonstrate some of the solutions we have delivered for our clients. Rottman, and M.C. The prefixes ‘p’ and ‘i’ stand for problem and interviewee respectively in the identifiers to be used. Issues with trying to streamline the work in-house were; people spread over 5 … Without a good fit, any offshore outsourcing efforts, to Vietnam or any other country, may be doomed to failure from the outset. %%EOF currently unresolved, defects (pO-I7,iI1). Unlike the Finns, the Latvians had their vacations in smaller pieces throughout the year. 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. A related problem was that the customers sometimes wondered why they were paying for a service also when there were no open; i.e. The Finns had to tell them precisely what kinds of answers were expected (pC-L9,iL3). Krishnan, “The role of software processes and communication in offshore software development”. Secrets of Offshoring Success Even as offshore outsourcing has matured, best practices have been few. Another potential problem was that the customer was receiving contradictory messages regarding the fluency of the service (pO-L3,iL2). Overall, there were not many problems related to the outsourcing relation as such for this case. Client Case Study. Evaluation of Vietnam as an Outsourcing Destination. We have gathered qualitative data from nine experts via theme-based interviews. The running numbers differentiate the identified items from each other within each theme and country. That was problematic since the involved Finnish experts worked only 8 h a day, whereas the Philippine production center operated non-stop in three shifts (pD-P7,iP3). 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). E. Beulen, “Managing an IT-outsourcing partnership in Asia. 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. G. Borchers, “The software engineering impacts of cultural factors on multi-cultural software development teams”, in: J.K. Winkler, J. Dibbern, and A. Heinzl, “The impact of cultural differences in offshore outsourcing - Case study results from German–Indian application development projects”. S.U. The Indian chief (iI2), however, regarded timing easy in practice, because the contract set the daily times for the service and there was nevertheless about 5 h common time. Case Studies; Blog; Glossary; Careers +1 855 539 6256. 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”. Occasionally persons who were not communicating face-to-face revealed more readily concerns which were not relevant (pO-L4,iL2). In matter of fact, this phenomenon has been beneficial since in this way the daily service could be extended. Knowledge Transfer in Offshore Outsourcing: A Case Study of Japanese and Vietnamese Software Companies: 10.4018/978-1-4666-2142-8.ch005: This paper discusses the knowledge transfer process in offshore outsourcing. 38 0 obj <> endobj 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 public free days vary according to the religious groups. None of the group members in the production center neither had the best possible English skills (pC-L6,iL2). J. 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). According to the Finnish coordinator, there occurred each week situations in which some issue which had earlier been agreed on had nevertheless not been properly dealt with (pC-I6,iI1). 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). Latvians were in this context usually technical developers, whereas Finns were consultants, coordinators, or chiefs. Dwivedi, “A multi-disciplinary profile of IS/IT outsourcing research”. The empirical data gathering has focused on revealing problems in the outsourcing practices. C. Seybold, and R.K. Keller, “Aligning software maintenance to the offshore reality”, in: J.W. However, in some cases it was impossible to avoid strict control to ensure progress of the work (pD-L2,iL1). 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). 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). Due to the posed length limitations the actual transcribed citations cannot be reported here. If there was a need to analyze those service requests which had not been dealt with within the recommended time limits; they should not be related to individual Philippines, because they may feel themselves being accused of the situation and “go into panic” (pC-P4,iP1). Ecommerce Outsourcing; Offshore Staffing; Company; Our Work; Resources. The Philippine group head mentioned; as a former problem, obscurities in service during vacations (pT-P1,iP3). 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). 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). That phenomenon sometimes made understanding each other hard (pC-L7,iL3). Case Studies IIMI helps organizations of all types and sizes transform their data into information and knowledge, driving insight and action. U.M. The fundamental problem and risk of distributed projects was that communication was complicated (pD-I3,iI2). Outsourcing healthcare services increases effectiveness and flexibility, allows concentration on core competency and lowers costs. ‘O’ stands for Outsourcing, ‘D’ for Distributed work, ‘T’ for Scheduling and Timing, and ‘C’ for Cultural differences. Halemane, “Building a successful relationship in business process outsourcing”. 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”. The current exploratory paper using qualitative case study methods presents experiences from four Canadian companies based in the province of Quebec. Kobelsky, and M.A. In that case more interpretation of the messages was required to be potentially able to determine whether there were real problems. 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 Latvian group head (iL3) neither had noticed any major problems between the involved Finnish persons and the customers. Not logged in 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. 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). This stance was positively affected by the fact that the customers’ representatives had visited the Latvian production center multiple times. The exact working hours and days had been defined in the contract. This was inconsistent behaviour since the customer had earlier agreed on the criteria for paying. All the interviewees related to the Philippine production center (iP1,iP2,iP3) regarded the customer relation as being excellent. In India it was customary to perform quality checks amply and the checks were usually performed by others than the person who had done the work. Saxena, and M.D. 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. 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). Prod. Weekly meetings were often considered as a burden and the involved persons could not utilize them in full extent (pD-L4,iL2). 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 … The offshore-outsourcing choice is viewed as a source of factory closures and job losses in many developed countries including Canada. “Managing cross-cultural issues in global software outsourcing”. 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). The involved Finns and Latvians had similar cultural mentalities (iL2). The problems related to this main aspect were small. Outsourcing Case Study: How It Benefited A Retail Store Chain 26 February 2018 In the following outsourcing case study, we discuss the client’s working relationship with Diversify, the roles they initially looked for and how they expanded to further accommodate higher level functions. This in turn was very frustrating to the involved Finns. Offshore India Data Entry is a renowned service provider in India. According to the Indian chief the Indians and the Finns had different communication cultures. As the volume of customers increased, they began to experience a range of issues with business continuity, staff turnover, and customer service. Outsourcing offshore transferred responsibility for system upgrades, people management and service delivery. The Latvian employees did not regard the customer as being in an important role. For example, Vietnam’s salaries are over 30% less expensive for both IT outsourcing (ITO) and business process … 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. 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). On the other hand, during the early morning hours there were not necessarily many workers present (pT-L1,iL2). According to the Latvian group head (iL3) there were no actual cultural differences between the Latvians and the Finns, but the organizations differed from each other. 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