Hierarchical mixtures of experts and the EM algorithm
Neural Computation
Beyond the Information Systems Outsourcing Bandwagon: The Insourcing Response
Beyond the Information Systems Outsourcing Bandwagon: The Insourcing Response
Machine Learning
Information systems outsourcing: a study of pre-event firm characteristics
Journal of Management Information Systems
International Journal of Business Information Systems
A review of the IT outsourcing literature: Insights for practice
The Journal of Strategic Information Systems
A multi-attribute group decision support system for information technology project selection
International Journal of Business Information Systems
A fuzzy opportunity and threat aggregation approach in multicriteria decision analysis
Fuzzy Optimization and Decision Making
Expert Systems with Applications: An International Journal
Should We Go Our Own Way? Backsourcing Flexibility in IT Services Contracts
Journal of Management Information Systems
An Organizational Culture Perspective in Business-IT Alignment
International Journal of IT/Business Alignment and Governance
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We present a methodology for managing outsourcing projects from the vendor's perspective, designed to maximize the value to both the vendor and its clients. The methodology is applicable across the outsourcing lifecycle, providing the capability to select and target new clients, manage the existing client portfolio and quantify the realized benefits to the client resulting from the outsourcing agreement. Specifically, we develop a statistical analysis framework to model client behavior at each stage of the outsourcing lifecycle, including: (1) a predictive model and tool for white space client targeting and selection-opportunity identification (2) a model and tool for client risk assessment and project portfolio management-client tracking, and (3) a systematic analysis of outsourcing results, impact analysis, to gain insights into potential benefits of IT outsourcing as a part of a successful management strategy. Our analysis is formulated in a logistic regression framework, modified to allow for non-linear input-output relationships, auxiliary variables, and small sample sizes. We provide examples to illustrate how the methodology has been successfully implemented for targeting, tracking, and assessing outsourcing clients within IBM global services division. Scope and purpose The predominant literature on IT outsourcing often examines various aspects of vendor-client relationship, strategies for successful outsourcing from the client perspective, and key sources of risk to the client, generally ignoring the risk to the vendor. However, in the rapidly changing market, a significant share of risks and responsibilities falls on vendor, as outsourcing contracts are often renegotiated, providers replaced, or services brought back in house. With the transformation of outsourcing engagements, the risk on the vendor's side has increased substantially, driving the vendor's financial and business performance and eventually impacting the value delivery to the client. As a result, only well-ran vendor firms with robust processes and tools that allow identification and active management of risk at all stages of the outsourcing lifecycle are able to deliver value to the client. This paper presents a framework and methodology for managing a portfolio of outsourcing projects from the vendor's perspective, throughout the entire outsourcing lifecycle. We address three key stages of the outsourcing process: (1) opportunity identification and qualification (i.e. selection of the most likely new clients), (2) client portfolio risk management during engagement and delivery, and (3) quantification of benefits to the client throughout the life of the deal.