The New IT Outsourcing Landscape: From Innovation to Cloud Services PDF
Preview The New IT Outsourcing Landscape: From Innovation to Cloud Services
The New IT Outsourcing Landscape The New IT Outsourcing Landscape From Innovation to Cloud Services Leslie P. Willcocks London School of Economics, London, UK and Mary C. Lacity University of Missouri, St. Louis, USA Selection and editorial content © Leslie P. Willcocks and Mary C. Lacity 2012 Individual Chapters © Contributors 2012 Softcover reprint of the hardcover 1st edition 2012 978-0-230-35881-2 All rights reserved. No reproduction, copy or transmission of this publication may be made without written permission. No portion of this publication may be reproduced, copied or transmitted save with written permission or in accordance with the provisions of the Copyright, Designs and Patents Act 1988, or under the terms of any licence permitting limited copying issued by the Copyright Licensing Agency, Saffron House, 6–10 Kirby Street, London EC1N 8TS. Any person who does any unauthorized act in relation to this publication may be liable to criminal prosecution and civil claims for damages. The authors have asserted their rights to be identified as the authors of this work in accordance with the Copyright, Designs and Patents Act 1988. First published 2012 by PALGRAVE MACMILLAN Palgrave Macmillan in the UK is an imprint of Macmillan Publishers Limited, registered in England, company number 785998, of Houndmills, Basingstoke, Hampshire RG21 6XS. Palgrave Macmillan in the US is a division of St Martin’s Press LLC, 175 Fifth Avenue, New York, NY 10010. Palgrave Macmillan is the global academic imprint of the above companies and has companies and representatives throughout the world. Palgrave® and Macmillan® are registered trademarks in the United States, the United Kingdom, Europe and other countries. ISBN 978-1-349-59532-7 ISBN 978-1-137-01229-6 (eBook) DOI 10.1057/9781137012296 This book is printed on paper suitable for recycling and made from fully managed and sustained forest sources. Logging, pulping and manufacturing processes are expected to conform to the environmental regulations of the country of origin. A catalogue record for this book is available from the British Library. A catalog record for this book is available from the Library of Congress. 10 9 8 7 6 5 4 3 2 1 21 20 19 18 17 16 15 14 13 12 Transferred to Digital Printing in 2012 Contents List of Tables vi List of Figures viii List of Boxes ix Acknowledgements x Notes on Contributors xii Introduction: The Emerging IT Outsourcing Landscape 1 Leslie P. Willcocks and Mary C. Lacity Part I The Outsourcing Landscape 1 Mapping the IT Outsourcing Landscape: Review and Future Directions 25 Mary C. Lacity, Shaji Khan, Aihua Yan and Leslie P. Willcocks 2 Transaction Cost Economics and After: Addressing The New Theory Challenge 89 Mary C. Lacity, Leslie P. Willcocks and Shaji Khan Part II Six Themes and New Directions 3 Innovation: S tep- Change in Outsourcing: Towards Collaborative Innovation 129 Edgar Whitley and Leslie P. Willcocks 4 Projects: Managing Escalation in Outsourcing 165 Dorottya Kovasznai and Leslie Willcocks 5 Offshoring: C ross- Cultural Strategies from the Offshore Provider’s Perspective 206 Pamel Abbott, Ying Qin Zheng, Rong Du and Leslie P. Willcocks 6 Onshore: What about Rural Outsourcing? 222 Mary Lacity, Joseph Rottman and Shaji Khan 7 The Neglected Role of Middle Management in Outsourcing and Offshoring 251 Leslie Willcocks and Catherine Griffiths 8 Cloud on the Landscape: Promises and Challenges 279 Leslie Willcocks, Will Venters, Edgar Whitley and John Hindle Appendices 305 Index 325 v List of Tables 1.1 Outsourcing literature reviews 28 1.2 Empirical ITO articles included in this review by journal, year and study method 31 1.3 Relationship coding scheme 37 1.4 Dependent variables used in ITO research 41 1.5 Offshore outsourcing research over time 45 1.6 Independent variables used in ITO research 46 2.1 TCE constructs coded 93 2.2 Empirical findings from TCE in the ITO context (ALL) 95 2.3 Empirical findings from TCE in the ITO context (DECISIONS ONLY) 96 2.4 Empirical findings from TCE in the ITO context (OUTCOMES ONLY) 97 2.5 Explanation of anomalies 98 A2.6 Empirical ITO findings from TCE propositions 114 3.1 Organizational perspectives on innovation 135 A3.2 Characteristics of participants 158 4.1 List of interviews with key XperTans personnel on the C&C project 178 4.2 Comparing the XperTrans-C&C arrangement with outsourcing best practices 182 4.3 Research summary on escalation in outsourcing 193 A4.4 A summary of escalation theories 195 5.1 Creolization as a theoretical construct 211 5.2 Summary of practices adopted by Xi’an Software Park practitioners 217 6.1 Case studies 225 6.2 Value proposition, services and clients 230 6.3 Delivery centre locations 235 vi List of Tables vii 6.4 Developing human capital 238 6.5 Scaling operations 241 7.1 Nine core back-office middle manager roles 262 7.2 Twelve core supplier roles 268 8.1 Cloud ‘desires’ framework 284 8.2 Four types of cloud computing offerings 285 List of Figures 1.1 The dependent variable over time 43 1.2 The descriptive model of findings on ITO decisions 54 1.3 The descriptive model of findings on ITO outcomes 58 2.1 Descriptive model of findings on ITO decisions 110 2.2 Descriptive model of findings on ITO outcomes 112 3.1 The global sourcing learning curve 1989–2011 (developed from Lacity and Rottman (2008)) 132 3.2 The process of collaborative innovation 144 3.3 Technical versus adaptive challenges (adapted from Heifetz, 1994) 146 3.4 Options for back office innovation (adapted from Willcocks et al., 2011) 147 3.5 Technical, adaptive and innovative work in outsourcing 151 3.6 Power and p artnering- based relationships 153 4.1 A Synthesis of Escalation 173 4.2 XperTrans-C&C timeline (EMEA focus) 179 A4.3 XperTrans-C&C project go live milestones (EMEA Specific) 200 A4.4 XperTrans-C&C project waves and countries 201 5.1 A conceptualization of the process of creolization 209 7.1 The supplier: from resources to capabilities and competencies 255 7.2 Nine core capabilities for high- performing IT and back office functions 257 7.3 Key supplier capabilities 265 8.1 Comparative risks of business cloud services 290 viii List of Boxes 3.1 Collaborative innovation at KPN 139 3.2 Collaborative innovation at StatoilHydro 141 3.3 Spring Global Mail: Outsourcing and innovation 143 7.1 Sidebar: addressing the manager gaps in non- BRIC countries 270 ix
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