Information Systems Outsourcing 2009
DOI: 10.1007/978-3-540-88851-2_20
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A US Client's Learning from Outsourcing IT Work Offshore

Abstract: Based on 45 interviews and significant documentation, we explore the offshore outsourcing experiences of a US-based biotechnology company. This company offshore outsourced 21 IT projects to six suppliers in India. Senior managers and the official documents from the Program Management Office consistently reported that offshore outsourcing was successful in reducing the company's IT costs. But interviews with knowledgeable participants actually managing the projects suggest that many projects were not successful… Show more

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Cited by 19 publications
(34 citation statements)
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“…Even though micromanagement increases transaction costs, it is needed to mitigate risks, to build trust, and to coordinate remote and culturally diverse delivery teams. Building on their prior research, Rottman and Lacity [2008] carry out a longitudinal case study to explore the offshore outsourcing experiences of a US-based biotechnology firm from twenty-one IT projects with six Indian suppliers. They find evidence that strong social networks between a company's internal IT employees and domestic contractors cannot be easily replicated with offshore workers.…”
Section: "Outcome"-stagementioning
confidence: 99%
“…Even though micromanagement increases transaction costs, it is needed to mitigate risks, to build trust, and to coordinate remote and culturally diverse delivery teams. Building on their prior research, Rottman and Lacity [2008] carry out a longitudinal case study to explore the offshore outsourcing experiences of a US-based biotechnology firm from twenty-one IT projects with six Indian suppliers. They find evidence that strong social networks between a company's internal IT employees and domestic contractors cannot be easily replicated with offshore workers.…”
Section: "Outcome"-stagementioning
confidence: 99%
“…During this time, the overall financial performance of the bank was stellar with successful contributions from several offshore suppliers. Exact cost savings are hard to estimate given the changing scope of work and hidden costs of offshoring (Rottman & Lacity, 2008), but senior managers claimed that, between 2003 and 2007, they achieved 30-40% cost savings in IT services while delivering innovative IT applications and supporting huge business growth. In BPO, one COO commented: "With the increased business, the amount of work I had to do went way up, while my costs went way down.…”
Section: [A Web-based Application] Was Being Developed By An [Indian mentioning
confidence: 99%
“…CMMI certification is expected to significantly improve an organization's chances of gaining new contracts . It has also been shown that different levels of software development maturity between GSD organizations can have negative impact on the software development process and project success . Hence, SPI initiatives have increasingly important role in the context of GSD.…”
Section: Motivationmentioning
confidence: 99%