Advanced Outsourcing Practice: Rethinking ITO, BPO and Cloud Services

285 Pages·2012·1.583 MB·English

by  Mary C. Lacity, Leslie P. Willcocks (auth.)

Advanced Outsourcing Practice
Technology,WorkandGlobalization
The Technology, Work and Globalization series was developed to provide policy makers,
workers,managers,academics,andstudentswithadeeperunderstandingofthecomplex
interlinks and influences between technological developments, including information
andcommunicationtechnologies,workorganizations,andpatternsofglobalization.The
mission of the series is to disseminate rich knowledge based on deep research about
relevantissuessurroundingtheglobalizationofworkthatisspawnedbytechnology.
Alsointheseries:
MaryC.LacityandLeslieP.Willcocks
ADVANCEDOUTSOURCINGPRACTICE
CarstenSørensen
ENTERPRISEMOBILITY
TinyTechnologywithGlobalImpactonWork
LeslieP.WillcocksandMaryC.Lacity
GLOBALSOURCINGOFBUSINESSANDITSERVICES
FrancescoContiniandGiovanFrancescoLanzara
ICTANDINNOVATIONINTHEPUBLICSECTOR
NikiPanteliandMikeChaisson
EXPLORINGVIRTUALITYWITHINANDBEYONDORGANIZATIOINS
JuliaKotlarsky,IlanOshri,andPaulC.vanFenema
KNOWLEDGEPROCESSESINGLOBALLYDISTRIBUTEDCONTEXTS
EdgarWhitleyandIanHosein
GLOBALCHALLENGESFORIDENTITYPOLICIES
ShirinMadon
E-GOVERNANCEFORDEVELOPMENT
AFocusonRuralIndia
MaryC.LacityandJosephW.Rottman
OFFSHOREOUTSOURCINGOFITWORK
IlanOshri,JuliaKotlarsy,andLeslieP.Willcocks
OUTSOURCINGGLOBALSERVICES
Knowledge,InnovationandSocialCapital
ChrisanthiAvgerou,GiovanFrancescoLanzara,andLeslieWilcocks
BRICOLAGE,CAREANDINFORMATION
ShirinMadon
E-GOVERNANCEFORDEVELOPMENT
MaryC.Lacity,LeslieP.Willcocks,andYingqinZheng
CHINA’SEMERGINGOUTSOURCINGCAPABILITIES
JannisKallinikos
GOVERNINGTHROUGHTECHNOLOGY
InformationNetsandSocialPractice
LeslieP.Willcocks,SaraCullen,andAndrewCraig
THEOUTSOURCINGENTERPRISE
FromCostManagementtoCollaborativeInnovation
SjaakBrinkkemperandSlingerJansen
COLLABORATIONINOUTSOURCING
AJourneytoQuality
Advanced Outsourcing
Practice
Rethinking ITO, BPO and Cloud Services
Mary C. Lacity
UniversityofMissouri,St.Louis,USA
and
Leslie P. Willcocks
LondonSchoolofEconomicsandPoliticalScience,London,UK
Palgrave
macmillan
Selectionandeditorialcontent©MaryC.LacityandLeslieP.Willcocks2012
Foreword©MichaelJ.Salvino2012
Individualchapters©thecontributors2012
Softcoverreprintofthehardcover1stedition2012978-1-137-00557-1
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Firstpublished2012by
PALGRAVEMACMILLAN
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ISBN978-1-349-66823-6 ISBN978-1-137-00558-8(eBook)
DOI 10.1057/9781137005588
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Contents
ListofTables,Figures,andBox vii
SeriesPreface ix
Foreword–TimeforaRethinkbyMichaelJ.Salvino xiv
Preface xxiii
Acknowledgments xxix
NotesonContributors xxxi
1 RobustPracticesfromTwoDecadesofITOandBPO
Research 1
MaryC.Lacity,LeslieP.Willcocks,andStanSolomon
2 WhatProvidersSayaboutEstablishingtheOutsourcing
Arrangement 25
MaryC.LacityandLeslieP.Willcocks
3 WhatProvidersSayaboutManagingOutsourced
Services 47
LeslieP.WillcocksandMaryC.Lacity
4 CreatingSharedServicesinthePrivateandPublic
Sectors 69
MaryC.Lacity
5 TheChangingRoleofClientProjectManagement 97
MaryC.LacityandJosephRottman
6 Best-of-BreedversusBundledServices 121
LeslieP.Willcocks,IlanOshri,andJohnHindle
7 RuralSourcingandImpactSourcing 143
MaryC.LacityandJosephRottman
8 ShiftingtoCloudServices:CurrentChallengesandFuture
Opportunities 169
LeslieP.Willcocks,WillVenters,EdgarWhitley,andJohnHindle
v
vi Contents
AppendixA:ResearchMethod 197
AppendixB:Glossary 205
Bibliography 217
Index 241
Tables, Figures, and Box
Tables
1.1 ITOandBPOresearchtopics 2
1.2 Outsourcingdrivers 7
1.3 Outsourcingbarriers 9
1.4 Commonoutsourcingrisks 10
1.5 Client-retainedcapabilities 16
1.6 Providercapabilities 19
2.1 Thingsproviderssay 26
2.2 Contractduration 44
3.1 Ninecoreback-officecapabilities 53
3.2 Providercapabilities 60
4.1 Savingsgeneratedfromvirtualconsolidation 91
5.1 Companypseudonyms 98
5.2 Effectsofoffshoreoutsourcingonclientprojectmanagers 99
6.1 Bundledservicescontracts,2003–08 123
6.2 Tobundleornottobundleoutsourcingservices:
Thedecisionmatrix 126
7.1 Overviewofproviderorganizations 147
7.2 Developinghumancapital 151
7.3 Valueproposition,services,andclients 156
7.4 Citypopulation,countypopulation,andCostofLivingIndex 164
A.1 Codingscheme 199
A.2 Offshoreoutsourcingresearchbase 201
A.3 Researchbaseusedforrural/impactsourcing 203
Figures
1.1 Determinantsofoutsourcingoutcomes 22
2.1 Outsourcinglearningcurve 29
2.2 Client’sbargainingpower 36
3.1 Outsourcingoutcomesfromclientandproviderperspective 66
4.1 Conceptualizingsharedservicesasfourchangeprograms 73
4.2 PhaseItransformationprogramsatReuters 75
4.3 PhaseIItransformationprogramsatReuters 80
4.4 Thenewfinanceoperatingmodel 81
4.5 Processanalysisattheactivitylevel 83
vii
viii ListofTables,Figures,andBox
4.6 OrganizationalredesignprogramsattheStateofMissouri 88
6.1 Clientpropensitytobuybundledservices 131
6.2 Sourcingfactoranalysis 136
6.3 Developingbundledservicesclientcapabilities 140
7.1 Relationshipbetweenruralsourcingandimpactsourcing 144
7.2 Sourcingoptions 160
7.3 Evolutionofclientengagements 161
7.4 Citypopulations,countypopulations,andCostofLivingIndex 165
8.1 Cloudevaluations 176
8.2 Thefourbigmetricsforcloud 179
8.3 Cloud–Businessandproviderperspectives 182
8.4 Stratificationofthesupplyindustry 183
8.5 Innovationinthecloud 191
Box
3.1 Anoffshorecaptivecenteroffshores–Nextdoor 57
Series Preface
We launched this series in 2006 to provide policy makers, workers, managers,
academics,andstudentswithadeeperunderstandingofthecomplexinterlinks
and influences among technological developments, including in information
and communication technologies (ICT), work organizations, and globaliza-
tion. We have always felt that technology is all too often positioned as the
welcome driver of globalization. The popular press neatly packages technol-
ogy’s influence on globalization with snappy sound bites, such as “Any work
that can be digitized will be globally sourced.” Cover stories report Indians
doingUStaxreturns,MoroccansdevelopingsoftwarefortheFrench,Filipinos
answering UK customer service calls, and the Chinese doing everything for
everybody. Most glossy cover stories assume that all globalization is progres-
sive, seamless, and intractable, and leads to unmitigated good. But what we
are experiencing in the twenty-first century in terms of the interrelationships
between technology, work, and globalization is both profound and highly
complex.
The mission of this series is to disseminate rich knowledge based on deep
research about relevant issues surrounding the globalization of work that is
spawned by technology. To us, substantial research on globalization consid-
ers multiple perspectives and levels of analyses. We seek to publish research
basedonanin-depthstudyofdevelopmentsintechnology,work,andglobal-
izationandtheirimpactsonandrelationshipswithindividuals,organizations,
industries,andcountries.Wewelcomeperspectivesfrombusiness,economics,
sociology, public policy, cultural studies, law, and other disciplines that con-
template both larger trends and micro-developments from Asian, African,
Australian, and Latin American, as well as North American and European
viewpoints.
Asofthiswriting,wehave14bookspublishedorundercontract.Thesebooks
areintroducedbelow.
1. Global Sourcing of Business and IT Services by Leslie P. Willcocks and Mary
C. Lacity is the first book in the series. The book is based on over 1000
interviewswithclients,providers,andadvisorsand15yearsofstudy.The
specific focus is on developments in outsourcing, offshoring, and mixed
sourcing practices from client and provider perspectives in a globalizing
world.Wefoundmanyorganizationsstruggling.Wealsofoundsomeorga-
nizationsadeptlycreatingglobalsourcingnetworksthatareagile,effective,
and cost-efficient. But they did so only after a tremendous amount of
ix