Outsourcing of business processes and information technology (IT) operations is an important trend in large and middle-sized organizations. However, outsourcing could affect the organization’s ability to align its IT with business strategy and operations. This article reports a qualitative study into the relationship between IT outsourcing (ITO) and business and IT alignment. It aims to provide recommendations for outsourcers and service providers on how outsourcing relationships should develop in order to support business and IT alignment. The research question of the study is “What is the effect of IT outsourcing on the business and IT alignment of companies that have outsourced their IT?”After a review of relevant literature and concepts, four cases are reported. The study revealed that a higher level of motivation for outsourcing paired with a higher level of the relationship between outsourcer and service provider and with a higher level of alignment maturity of the outsourcer. The study also showed that the ITO relationship is influenced by organizational turbulence on one or either side of the relationship and that the service providers tend to assess the relationship on a higher level than the outsourcers. These conclusions provide relevant directions for both outsourcers and service providers for improvement of the their relationship
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In Dutch higher education institutions, IT outsourcing (ITO) is becoming more common. New applications nowadays are executed from the ‘cloud’. But what to do with on premise applications? Can they also be outsourced? If so, what factors does a higher education institution have to consider when making the ITO decision of their on-premise applications? This research starts with finding the factors that are already known in existing ITO literature (in different contexts). Then, these decision factors are validated in four explorative interviews before surveying the factors within a higher education context. In total, fourteen factors are deemed to be important for Dutch higher education institutions. Based upon the survey responses by Dutch IT decision makers, a hierarchy exist in these fourteen factors. Also, this research suggest a relationship between outsourcing decision factors and the sourcing models. Additionally, outsourcing objectives seem to influence this relationship.
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This paper is an intermediate result of a PhD research project undertaken by Lenny Visser with Cees Ruijgrok as supervisor. The final objective of this project is to measure thresholds in logistics outsourcing decisions, especially for the chemical sector. If we are able to measure the relative importance of the underlying factors of these decision processes, we can also derive recommendations for removing or relieving these thresholds. For the measurement of these thresholds a Stated Preference experiment will be used. The paper describes the first steps in the design of this experiment by using theoretical and empirical findings. The model we propose is based of the concept of profit maximizing by minimizing integral logistic costs and maximizing revenues. This theory is checked by performing interviews with representatives of a number of case studies in the chemical industry.
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Henry Ford onderscheidt drie verschillende generaties binnen outsourcing: coming together, staying together en working together. 'Coming together is a beginning. Staying together is progress. Working together is succes.' Maar zijn we overal al in de fase van working together? Ik denk van niet. Daarom is het boeiend om in de special edition van MIS Quarterly eens te lezen wat de status van de wetenschap is omtrent offshoring.
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This paper analyzes the application of PRINCE2® in a multivendor outsourcing context. Given the ongoing trend in large and middle-sized organizations to outsource part of their IT operations it is relevant and important to understand the effect of this trend on the way projects can be managed. Based on an analytical and qualitative approach, using an expert panel, the study provides identified three specific considerations for the management of projects in a multi vendor outsourcing context
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Outsourcing and offshoring provide companies with ways to achieve their business objectives better or more cost effectively or despite a shortage of specific resources. From a research point of view, outsourcing and offshoring have mostly been studied as something that large companies do, not small and medium enterprises (SMEs). However, the business rationale for outsourcing and offshoring appears to be at least as compelling for SMEs as they are for large companies.NOT-12-02
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Accepted abstract to present at the CSCMP European Research Seminar (ERS 2024) on Logistics & SCM, to be held on June 20-21, 2024, in Warsaw, Poland.
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‘Bedrijfsprocessen uit de cloud, business rules als succesfactor’ is een publicatie van het Platform Outsourcing Nederland en is het verslag van een onderzoek van de Hogeschool Utrecht, Lectoraat Extended Enterprise Studies, die tot stand is gekomen met een subsidie van het PON (Platform Outsourcing Nederland).
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It is well-documented that international enterprises are more productive. Only few studies have explored the effect of internationalization on productivity and innovation at the firm-level. Using propensity score matching we analyze the causal effects of internationalization on innovation in 10 transition economies. We distinguish between three types of internationalization: exporting, FDI, and international outsourcing. We find that internationalization causes higher levels of innovation. More specifically, we show that (i) exporting results in more R&D, higher sales from product innovation, and an increase in the number of international patents (ii) outward FDI increases R&D and international patents (iii) international outsourcing leads to higher sales from product innovation. The paper provides empirical support to the theoretical literature on heterogeneous firms in international trade that argues that middle income countries gain from trade liberalization through increases in firm productivity and innovative capabilities.
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Purpose: The objective of this paper is to examine the continuing debate over the nature, scope and definition of facilities management and the implications of FM practice in the field of outsourcing for the development of the field and the profession. Design/methodology/approach: The paper offers both a conceptual review of key issues in the definition of facilities management and a critique of these definitions in the context of the popular identity of facilities management as a means of generating cost savings through outsourcing. Findings: The discussion asserts that, perhaps contrary to the many published doubts expressed over the possibility of achieving consensus on the scope of facilities management, an emerging and broadly consensual model of facilities management can be discerned. This model, it is suggested, is inhibited from further development primarily because of a lack of leadership in the professional and academic communities together with a preoccupation by necessity of the FM profession with operational imperatives. Originality/value: The paper, through synthesis and critique, offers a variant perspective on the debate about the nature of facilities management.
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