Managing successful IT outsourcing relationships

Foreword	p. vii
Preface	p. ix
Chapter I Introduction	p. 1
Three International-Based Research Case Studies	p. 4
Chapter II IT Outsourcing	p. 6
Transformational Outsourcing	p. 7
Outsourcing Decisions	p. 10
IT Outsourcing Markets	p. 10
Business Application Outsourcing	p. 12
Business Process Outsourcing	p. 14
Maturity	p. 15
Innovation Diffusion	p. 18
Outsourcing Definitions	p. 19
Business Example: Offshore Insurance Business Process Outsourcing	p. 24
Business Example: Ministry of Children and Family Affairs	p. 25
Case Study: Total Outsourcing Keeping a Strong In-house Group	p. 26
Chapter III Some Fundamental Perspectives	p. 28
Value Configurations	p. 28
E-Business Infrastructure	p. 38
Vendor Value Proposition	p. 52
IT Function Organization	p. 57
Outsourcing Performance	p. 58
Successful Relationships	p. 60
Outsourcing Opportunities	p. 60
Outsourcing Threats	p. 62
Business Example: NetCom	p. 68
Business Example: DuPont	p. 69
Case Study: The Largest Buy-Out in Europe	p. 70
Chapter IV IT Outsourcing Theories	p. 71
Transaction Cost Theory	p. 71
Neoclassical Economic Theory	p. 77
Contractual Theory	p. 78
Theory of Core Competencies	p. 85
Agency Theory	p. 89
Resource-Based Theory	p. 91
Partnership and Alliance Theory	p. 105
Relational Exchange Theory	p. 108
Stakeholder Theory	p. 112
Theory of Firm Boundaries	p. 114
Social Exchange Theory	p. 117
Comparison of Theories	p. 120
Business Example: British Aerospace	p. 120
Business Example: North Cape Minerals	p. 124
Case Study: A Global Deal	p. 125
Chapter V Enter Strategy	p. 127
Distinctive IT Nature	p. 127
Sourcing Alternatives	p. 129
Global Outsourcing	p. 136
Strategic IT Planning	p. 140
Project Management	p. 147
Conclusions	p. 152
Case Studies: Enter Strategies	p. 152
Chapter VI Phases and Activities	p. 155
Phase 1 Vision	p. 155
Phase 2 Evaluation	p. 156
Phase 3 Negotiation	p. 157
Phase 4 Transition	p. 158
Phase 5 Improvement	p. 159
Phase 6 Mature	p. 162
Winner's Curse	p. 163
Conclusions	p. 164
Case Studies: Relationship Phases	p. 164
Chapter VII Contract Development	p. 168
Contract Structure	p. 168
Asset Transfer	p. 170
Risk Sharing	p. 171
Technology Upgrading	p. 172
Contract Duration	p. 173
Due Diligence	p. 174
Outsourcing Relationships	p. 175
Relationship Management	p. 176
Fee Arrangements	p. 177
Dispute Resolution	p. 178
Public Sector	p. 180
Conclusions	p. 180
Case Studies: Contract Development and Management	p. 181
Chapter VIII Personnel Issues	p. 184
Reduction in IT Staff	p. 184
Employment Protection	p. 185
Pension Considerations	p. 186
Predictors of Persistent Stakeholder Expectations	p. 187
Persistence in Managerial Expectations	p. 195
Transplant Perception of Role	p. 201
Conclusions	p. 202
Case Studies: Transfer of IT Employees	p. 203
Chapter IX Governance Structures	p. 205
Perspectives on Governance	p. 205
Interaction Approach	p. 212
Management Control Systems	p. 215
Performance Measurement	p. 218
Partnering Relationships	p. 222
Partnership Quality	p. 223
Stakeholders	p. 227
Hard and Soft Sides	p. 228
The IT Outsourcing Governance Model	p. 230
Conclusions	p. 235
Case Studies: Governance Structures	p. 236
Chapter X Costs, Benefits, and Risks	p. 239
Production and Transaction Economies	p. 239
Hidden Costs	p. 244
Contract Termination Costs	p. 246
Benefits	p. 247
Strategic Risk Behavior	p. 249
Conclusions	p. 251
Case Studies: Outsourcing Costs	p. 252
Chapter XI Knowledge Management	p. 254
Intellectual Capital Management	p. 254
Vendor Value Proposition	p. 258
Business Process Management	p. 259
Knowledge Management Technology	p. 260
Stages of Technology Growth	p. 263
Conclusions	p. 269
Case Studies: Retained Skills	p. 269
Chapter XII Exit Strategy	p. 271
Think Exit	p. 271
Strategic Outsourcing Termination	p. 273
Contract Termination	p. 274
Exit Management	p. 276
Project Management	p. 278
Conclusions	p. 281
Case Studies: Exit Strategy	p. 282
Conclusions	p. 283
References	p. 286
About the Authors	p. 298
Index	p. 299

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