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. Towards Sustainable Offshore Outsourcing: A Case Study of Quebec Manufacturing Outsourcing Firms to China The paradigm of globalization has been evolving over the years. 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”. The Latvian and Finnish times zones are the same. K.W. 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. All the interviewees related to the Philippine production center (iP1,iP2,iP3) regarded the customer relation as being excellent. According to the Indian chief the Indians and the Finns had different communication cultures. Secrets of Offshoring Success Even as offshore outsourcing has matured, best practices have been few. The focus is a case study of software offshore outsourcing from … “Managing cross-cultural issues in global software outsourcing”. None of the group members in the production center neither had the best possible English skills (pC-L6,iL2). %PDF-1.6 %���� E.g., they were not always able to make proper summaries. J. Dibbern, T. Goles, R. Hirschheim, and B. Jayatilaka, “Information systems outsourcing: A survey and analysis of the literature”. 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. ‘O’ stands for Outsourcing, ‘D’ for Distributed work, ‘T’ for Scheduling and Timing, and ‘C’ for Cultural differences. This caused them e.g. 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). Also the vacations were regarded mainly as unproblematic (iI2). 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. 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. The appendices provide the details of the gathered data related to the studied four themes. 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. The Latvian employees did not regard the customer as being in an important role. Home; Services. ... South Africa has won both the National and European Outsourcing Association Offshoring Destination of the Year awards for 2012 and 2013 respectively. The case study strategy was adopted in this study. Consequently, there was a need for active work control. 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). Call Center Offshore Outsourcing - A Case Study Flatworld transformed the sales process for a global software and services company based in the US. Consumer Retail Industry Case Study: Excellence in Outsourcing Customer Service. 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. They also had to perform their own assigned primary work tasks, which meant that only a fraction of their resources was available for the offshore communication purposes (pT-I8,iI3). Unlike the Finns, the Latvians had their vacations in smaller pieces throughout the year. 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. 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. 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). The Finnish coordinator of the Indian service revealed many typical problems. Cost: Labor costs in Vietnam compare very favorably to other potential outsourcing destinations. 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). Lack of proactivity was sometimes viewed as a weakness of some of the Latvians (pC-L2,iL1). J. 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. CuriosityStream … Saxena, and M.D. 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 current exploratory paper using qualitative case study methods presents experiences from four Canadian companies based in the province of Quebec. The presented results on the studied thematic issues can be useful in their part for better understanding typical problems related to initiating and organizing similar IS-related offshore outsourcing activities. Featured Case Studies. h�bbd```b``�"���H��D������k��!��������)�6m-�44�YA$�d ���2�W!ą5����L@Wm� e("�30�� Some of the employees brought forth boldly new solutions, whereas others implemented only what had been specifically requested. The involved Finns and Latvians had similar cultural mentalities (iL2). 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). There were 74 mentions of different kinds of confronted problems. 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). %%EOF 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). Econ., 162 (2015), pp. Case Studies | Offshore Recruitment Services | Outsourcing. Offshore Outsourcing-ROI Calculator: Comparison between In-house, Onshore,Offshore and ODC ROI. Offshore outsourcing to vendors in foreign countries causes unique challenges which need to be understood and managed effectively. Iacovou, and R. Nakatsu, “A risk profile of offshore-outsourced development projects”. 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). © 2020 Springer Nature Switzerland AG. 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”. Offshore outsourcing for the development or improvement of the informational system is a widely popular practice. We focus on the following issues: 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). Krishnan, “The role of software processes and communication in offshore software development”. As the volume of customers increased, they began to experience a range of issues with business continuity, staff turnover, and customer service. The Indian group member (iI3) regarded the differing timings for vacations problematic (pT-I4,iI3). During the first generation of globalization, cross-border trade was dominated by exchanges of raw materials or finished goods, the two most extreme elements of the value chain. 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. 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, https://doi.org/10.1007/978-3-319-06764-3_18. At IMS People Possible, we are proud of the diverse range of projects we have delivered across UK, Europe, North America, Australia, New Zealand and Canada. Misra, A.K., “An influence model for factors in outsourced software maintenance”. The only problem was that sometimes some of the Latvian employees had passed to the customer information which should have been kept internal (pO-L8,iL3). Case Studies IIMI helps organizations of all types and sizes transform their data into information and knowledge, driving insight and action. Vepsalainen, “IS outsourcing practices in the USA, Japan and Finland: A comparative study”. M. Gylling, J. Heikkilä, K. Jussila, M. SaarinenMaking decisions on offshore outsourcing and backshoring: a case study in the bicycle industry Int. When they noticed a problem they assumed that they were capable of solving it and let time pass (pC-I4,iI2). The customer also easily did get used to having such extra service. S.-L. Järvenpää, and J.Y. 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. Knowledge Integration Case Study 3181 Words | 13 Pages. 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. Sometimes, the Latvian employees did give a too positive view of the progress of their work (pC-L3,iL1). This was a problem especially in the beginning of the service. 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. The prefixes ‘p’ and ‘i’ stand for problem and interviewee respectively in the identifiers to be used. The Latvian group head (iL3) neither had noticed any major problems between the involved Finnish persons and the customers. Other industries that deal with sensitive information, such as banking and government, have experienced success with offshore outsourcing and keeping their data secure. 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”. The Philippines appeared to have a cultural need to please others; especially the involved Finns (iP2). Generally, Latvian employees tended to come to the working place later and also to leave from there later than the Finns. Now two top academics reveal the principles that should guide CIOs. 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. Offshore Development Center (ODC) presentation: Flash walk-through of Infynita ODC services. We have conducted an exploratory case study of outsourcing IS support services. 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 S.U. Case Studies The quality outsourcing services we have provided our clients in the past few years will give you an idea of what exactly PrimeOutsourcing can do for you. 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. endstream endobj 39 0 obj <. 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”. 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. The Finnish coordinator (iL1) did not consider the Latvian timings of vacations as a problem. Due to the posed length limitations the actual transcribed citations cannot be reported here. The services have been outsourced by a supplier organization which has been based in Finland. Infynita Case Studies: A live projects case studies of Infynita. 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. 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. Dwivedi, “A multi-disciplinary profile of IS/IT outsourcing research”. S. Ramingwong, and L. Ramingwong, “The paradoxical relationship of risks and benefits in offshore outsourcing of software projects”. On the other hand, during the early morning hours there were not necessarily many workers present (pT-L1,iL2). 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). 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). The fundamental problem and risk of distributed projects was that communication was complicated (pD-I3,iI2). The Finnish long summer break caused troubles to the Indian workers. In some cases, companies choose to leverage their outsourcing partners to establish development centers in remote locations. PrimeOutsourcing offers various services for clients all over the world. 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). Robinson, “The impact of outsourcing on information technology spending”. Lack of exact and clear instructions was a central problem (pD-I1,iI1) for correctly performing work tasks. One recognized problem related to vacations, however, was lack of check-points (pT-I3,iI2). Sometimes, some of the Latvians were too timid to tell about the problems (pC-L5,iL1). 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). The problems related to this main aspect were small. He also mentioned that the Finns did not master the English language particularly well (pC-I11,iI3). View Case Study Consequently, the coordinator regarded building trust as the most significant challenge in the beginning of the service (pO-L1,iL1). This did not cause problems. Therefore, it was sometimes difficult to find common time during the working hours (pT-I1,iI1) for the Finns and the Indians. E.g, the problems which were internal to the production center’s service group were necessarily not worth mentioning to the customers. On the other hand, the customers had a high level of expectations and they assumed that everything will proceed smoothly. Kobelsky, and M.A. Overall, there were not many problems related to the outsourcing relation as such for this case. Weekly meetings were often considered as a burden and the involved persons could not utilize them in full extent (pD-L4,iL2). Cite as. ‘L’ stands for Latvia, ‘I’ for India, and ‘P’ for the Philippines. 75 0 obj <>stream 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. They did not necessarily pay attention to the issues which self-evidently should have been checked (pC-I9,iI1). Basically, the customers had to be given an impression that they had control and central information. E.g., sometimes the supplier did get an impression that the customer had not read the formal contract sufficiently meticulously (pO-I5,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). Offshore India Data Entry is a renowned service provider in India. Indians also tended to have too much optimism and indifference towards their tasks (pC-I3,iI2). 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. This service is more advanced with JavaScript available, New Trends in Networking, Computing, E-learning, Systems Sciences, and Engineering In matter of fact, this phenomenon has been beneficial since in this way the daily service could be extended. Ahmed, “Software maintenance outsourcing: Issues and strategies”. 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). Indians do not have long vacations, but they do have several separate public free days and optional vacations. Outsourcing healthcare services increases effectiveness and flexibility, allows concentration on core competency and lowers costs. Outsourcing, sometimes known as contract manufacturing, means an organization leverages the manufacturing capabilities or services of a third party, either domestically or overseas. This in turn was very frustrating to the involved Finns. According to the Finnish chief (iL2), there were very few identified cultural differences between Finland and Latvia. 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). S.S. Bharadwaj, K.B.C. 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). N. Khan, W.L. Not logged in But in most cases, it’s about engaging the contractor based on “fixed price” model or “actual work”. 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. Sobol, S. Hanaoka, T. Shimada, T. Saarinen, T. Salmela, and A.P.J. The Finns had to tell them precisely what kinds of answers were expected (pC-L9,iL3). Organizations won’t necessarily offshore or outsource the entirety of their production operation. We focus in this paper on offshore outsourcing of information systems (ISs). 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). S. Krishna, S. Sahay, and G. Walsham. Since the end-users were dispersed, the Latvians considered the location from where the service was provided as being inconsequential. Part of Springer Nature. Outsourcing offshore transferred responsibility for system upgrades, people management and service delivery. Thereby, it was hard for them to reveal if they did not like something or if they had a differing opinion (pC-P1,iP2). Evaluation of Vietnam as an Outsourcing Destination. Over 10 million scientific documents at your fingertips. For some it was necessary to define precisely what ought to be done, and when and what was expected. The different time zones were not regarded as a problem; on the contrary, they were seen as extending the provided service by 2,5 h a day (iI3). The supplier also had much implicit work to be completed related to developing the service. 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 empirical data gathering has focused on revealing problems in the outsourcing practices. Distributed work was complicated in cases when the offshore group had not been provided with a sufficient clarification of its task (pD-L3,iL2). Infynita Talk: Infynita Monthly Ezine for offshore Outsourcing related issues. Issues with trying to streamline the work in-house were; people spread over 5 … Another problem was that Finns worked only 8 h a day, whereas the Philippines worked 12 h. If the Philippines needed urgent help from the Finns; outside their formal working hours, problems could occur (pT-P2,iP3). Apte, M.G. 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 public free days vary according to the religious groups. 38 0 obj <> endobj Mao, “Operational capabilities development in mediated offshore software services models”. 92-100 Article Download PDF View Record in Scopus Google Scholar One problem was that the persons of the supplier often considered the persons of the production center merely as tools and acted accordingly (pD-P3,iP2). 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). The Philippine group head mentioned; as a former problem, obscurities in service during vacations (pT-P1,iP3). 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). Client Case Study. However, in some cases it was impossible to avoid strict control to ensure progress of the work (pD-L2,iL1). Case Studies; Blog; Glossary; Careers +1 855 539 6256. All; Design & Marketing (14) Ecommerce Outsourcing (1) Offshore Staffing (1) Menu. A. Gupta, “Deriving mutual benefits from offshore outsourcing”. 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. The running numbers differentiate the identified items from each other within each theme and country. Nevertheless, overall, the Latvian group head (iL3) regarded the outsourcing relation as being excellent. For example, Vietnam’s salaries are over 30% less expensive for both IT outsourcing (ITO) and business process … That phenomenon sometimes made understanding each other hard (pC-L7,iL3). 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. J. Lee, S. Miranda, and Y. Kim “IT outsourcing strategies: Universalistic, contingency and configurational explanations of success”. Occasionally persons who were not communicating face-to-face revealed more readily concerns which were not relevant (pO-L4,iL2). A related problem was that the customers sometimes wondered why they were paying for a service also when there were no open; i.e. E. Beulen, “Managing an IT-outsourcing partnership in Asia. 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 Philippine employees were afraid of “loosing their faces” which also tended to cause them not to tell all of their problems (pC-P3,iP2). We have gathered qualitative data from nine experts via theme-based interviews. It was hard for the Indian employees to use telephone (pC-I1,iI2) and to follow the status of a problem to be solved (pC-I2,iI2). The Indian time zone is +2,5 h as compared to Finland during summer and +3,5 h in other seasons. A problem for the Finnish coordinator was that the vacations of the Indian employees caused extra work (pT-I9,iI1). 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). If such Indian employees which had only little experience on their work communicated directly with the customers, there was a risk that also inappropriate information was passed to the customers (pO-I9,iI1); that information included supplier’s internal matters. 0 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. They were also perfectionists. Controlling the workers too much is obviously not good for their working morals. 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. Therefore, there obviously were no problems due to them. 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. 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). This situation called for caution in order to avoid pressing anyone to work in such days (pT-I10,iI1). R.E. The exact working hours and days had been defined in the contract. 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. h�b``c``������v�01G��30j0�3$q���`�P�p�qEs[ׅ a��f��1hM``RP3= 3��Kb0���,��PQF9� �L� They usually noticed only after the deadline that they after all were not capable of solving the problem (pC-I5,iI2). Whereas others implemented only what had been specifically requested offshore Staffing ; company ; work! Is outsourcing practices of confronted problems not be reported here company ; our work ; Resources 1 ) Staffing! Especially in the outsourcing relation as such for this case study methods presents experiences from Canadian! Separate public free days vary according to the production center ’ s learning from outsourcing it work offshore ” extended... Risk profile of IS/IT outsourcing research ” the relation was not like a normal relation... 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