Processes and Outsourcing

Particular attention is often paid to one important and common way of organizing globally-distributed work: outsourcing.  A service provider enters into a contractual relationship to develop some part of a product.  While such arrangements provide many benefits, including a favorable cost structure, the ability to access technical specialized resources, and on-demand ramp up and down, it can also be a great challenge for developers and managers.

In this section, we will look at processes, models, and practices for effective outsourcing relationships.  We will consider the outsourcing life cycle, and how to succeed both from the point of view of vendor and customer.

Slides

Readings

Hyder, E. B., Heston, K. M. and Paulk, M. C. The eSCM-SP v2.01: Model Overview. Technical Report CMU-ITSQC-06-006, Carnegie Mellon University, Pittsburgh, 2006, Ch. 1-2, pp. 3-14.

Additional Resources

Arora, A. and Gambardella, A. From underdogs to tigers: the rise and growth of the software industry in Brazil, China, India, Ireland, and Israel. Oxford University Press, USA, 2006.

Aspray, W., Mayadas, F. and Vardi, M. Y. Globalization and Offshoring of Software. A Report of the ACM Job Migration Task Force, Association for Computing Machinery, 2006.

Bhat, J. M., Gupta, M. and Murthy, S. N. Overcoming Requirements Engineering Challenges: Lessons from Offshore Outsourcing. IEEE Software, 23, 5 (2006), 38-44.

Brown, J. S. and Duguid, P. Organizational learning and communities-of-practice: Toward a unified view of working, learning, and innovation. Organization Science, 2(1991), 40-57.

Carmel, E. and Abbott, P. Why’nearshore’means that distance matters. Communications of the ACM, 50, 10 (2007), 40-46.

Cullen, S. and Willcocks, L. Intelligent IT outsourcing: eight building blocks to success. Butterworth-Heinemann, Boston, 2003.

Cusick, J. and Prasad, A. A Practical Management and Engineering Approach to Offshore Collaboration. IEEE Software, 23, 6 (2006), 20-29.

Cusumano, M., MacCormack, A., Kemerer, C. F. and Crandall, B. Software development worldwide: The state of the practice. Software, IEEE, 20, 6 (2003), 28-34.

Dibbern, J., Goles, T., Hirschheim, R. and Jayatilaka, B. Information systems outsourcing: a survey and analysis of the literature. ACM SIGMIS Database, 35, 4 (2004), 6-102.

Feeny, D., Lacity, M. and Willcocks, L. Taking the Measure of Outsourcing Providers: Successful Outsourcing of Back Office Business Functions Requires Knowing not Only Your companyís Needs but Also the 12 Core Capabilities That are Key Criteria for Screening Suppliers. Sloan Management Review, 46, 3 (2005), 41-49.

Heeks, R., Krishna, S., Nicholson, B. and Sahay, S. Synching or Sinking: Global Software Outsourcing Relationships. IEEE Software, March/April(2001), 54-60.

ITSqc, LLC, is a spin-off from Carnegie Mellon University, created to promote best practice models for the global IT-enabled services industry.

Kobitzsch, W., Rombach, D. and Feldmann, R. L. Outsourcing in India. IEEE Software, 18, 2 (2001), 78-86.

Lacity, M. C. and Willcocks, L. Global information technology outsourcing: In search of business advantage. Wiley, New York, 2001.

Lacity, M. C. and Willcocks, L. P. Strategic sourcing of information systems: Perspectives and practices. John Wiley and Sons, New York, 1998.

Lacity, M. C. and Hirschheim, R. A. Information systems outsourcing: Myths, metaphors and realities. Wiley, New York, 1993.

Mankiw, G. N. and Swagel, P. The politics and economics of offshore outsourcing. Journal of Monetary Economics, 53, 5 (2006), 1027-1056.

Ramasubbu, N., Krishnan, M. and Kompalli, P. Leveraging global resources: A process maturity framework for managing distributed development. Software, IEEE, 22, 3 (2005), 80-86.

Redmiles, D., Hoek, A. v. d., Al-Ani, B., Hildenbrand, T., Quirk, S., Sarma, A., Filho, R. S., Sou-za, C. d. and Trainer, E. Continuous Coordination: A New Paradigm to Support Globally Distributed Software Development Projects. Wirtschaftsinformatik, 49(2007), S28-S38.

Sakthivel, S. Managing risk in offshore systems development. Communications of the ACM, 50, 4 (2007), 69-75.

Shao, B. and David, S. D. The impact of offshore outsourcing on IT workers in developed countries. Communications of the ACM, 50, 2 (2007), 89-94.

Sparrow, E. Successful IT outsourcing: from choosing a provider to managing the project. Springer-Verlag New York Inc, 2003.

Tiwana, A. Beyond the black box: knowledge overlaps in software outsourcing. IEEE Software, 21, 5 (2004), 51-58.