Global sourcing is a complex area, and one that managers must get to grips with as business investment in outsourcing continues to climb. This book provides invaluable guidance for the reader, walking them through the fundamentals of global sourcing to very recent trends, including intelligent automation, cloud services and crowdsourcing. Replete with key examples and cases, it allows students and managers alike to relate academic theory to practice, acting as a roadmap to a rapidly evolving field.
For the last decade, the authors have studied the full spectrum of activities involved in global sourcing from both client, supplier and advisory viewpoints. Their research has shown that while more firms engage in global sourcing activities, many of them are still struggling to extract value from sourcing relationships. While past research has produced numerous practical frameworks regarding the management of global sourcing of services, little of this insight has been put into practice.
This book addresses such shortcomings by exploring the impact of theory on practice. It is important reading for any academic, student or practitioner concerned with global sourcing either from the client or supplier perspective.
Author(s): Ilan Oshri, Julia Kotlarsky, Leslie P. Willcocks
Edition: 4
Publisher: Palgrave Macmillan
Year: 2022
Language: English
Pages: 320
City: Cham
Acknowledgements
Contents
About the Authors
Notes on Contributors
List of Figures
List of Tables
Part I: Making a Sourcing Decision
1: Overview of the Global Sourcing Marketplace
Global Sourcing Background
Drivers, Benefits, and Risks of Global Sourcing
The 2020 Pandemic and Global Outsourcing and Offshoring
The Future of Outsourcing and Offshoring
Trend 1: Spending Will Continue to Rise in All Global Sourcing Markets
Trend 2: The ITO and BPO Outsourcing Markets Will Continue to Grow Through Both Smaller and Mega Deals
Trend 3: Digital Resonance Will Become an Important Component of the Service Location Decision
Trend 4: China’s Investment in ITO and BPO Services Is Still Signalling Promise
Trend 5: Eco-systems and Partnerships Will Pave the Way to Achieving Innovations
Trend 6: The Pandemic’s Impact on the Outsourcing Sector Will Continue to Dominate Outsourcing Decisions
Trend 7: Emerging Sourcing Services Around the Data-Driven Enterprise
Trend 8: The Rise of Sustainability in IS Sourcing
Summary
References
2: Traditional Sourcing Models
Overview of Traditional Sourcing Models
Considerations for Outsourcing and Offshoring
Identifying the Right Processes for Outsourcing and Offshoring
Factors Influencing the Suitability of Processes for Outsourcing and Offshoring
Impact of Operational and Structural Risks on Outsourcing and Offshoring Decisions
Complex and Problematic Business Processes
Summary
References
3: Internet Delivery Sourcing Models
Cloud Computing Services
Cloud-Based Sourcing Models
On-Premise Versus Cloud Solutions
Business, Data, and Financial Factors
Cloud and Security: Perennial and Heightened Concerns
Cloud Sourcing Management
Crowdsourcing
Understanding How Crowdsourcing Environments and Marketplaces Work
Why Do Buyers Come to OSEs?
What Challenges Do OSE Buyers Face?
Can Outsourcing Suppliers Benefit from Crowdsourcing?
Summary
References
4: Country Attractiveness for Sourcing
An Overview of Sourcing Destinations
Criteria for Selecting Locations
Factor 1: Costs
Factor 2: Skills
Labour Resources
Supplier Landscape
Factor 3: Business and Living Environment
Factor 4: Quality of Infrastructure
Factor 5: Risk Profile
Factor 6: Market Potential
Nearshoring and Beyond
Summary
References
Part II: Building Sourcing Competencies
5: Supplier Configurations and Capabilities
Overview of Supplier Configurations
Multisourcing Configurations and the Role of Service Integrator
Bundling Services
The Role of Advisory
Supplier Capabilities
Summary
References
6: Supplier Selection, Retained Management Capabilities, and Legal Issues
Supplier Selection: Key Aspects and Considerations
Market Considerations for Supplier Selection
Supplier-Selection Process
Assembling the Supplier-Selection Team
Defining the Process
Patience It is important to give suppliers the opportunity to respond to the RFP. The evaluation process should not be started (beyond a brief look to check for completion) before the deadline for receiving responses has come and gone. As
Proposal Evaluation
Due Diligence and Site Visit
Assessing Supplier Vulnerabilities
Common Mistakes When Selecting Suppliers
Client Attractiveness Through the Supplier’s Eyes
Client Sourcing Capabilities: The Retained IT Function
Legal Issues
Confidentiality
Security
Intellectual Property
Compliance
The Contract
Summary
References
7: Leveraging Knowledge and Expertise
Integrating Knowledge and Outsourcing Strategy
Leveraging Knowledge Through Intellectual and Social Capital
Knowledge Transfer Between On-Site and Offshore Teams
Dealing with Knowledge Asymmetry in Offshore Sourcing
A Transactive Memory System Between On-Site and Offshore Teams
Managing Expertise Within and Between Projects
Coordination Mechanisms to Facilitate Knowledge Processes in Global Teams
Practices for Managing Dispersed Expertise
Summary
References
Part III: Managing Sourcing Relationships
8: The IT Outsourcing Life Cycle and the Transition Phase
Key Stages of the Outsourcing Life Cycle
Architect Phase
Engage Phase
Operate Phase
Regenerate Phase
The Next Life-Cycle Round
Managing the Transition Stage: Key Issues and Best Practices
Managing the Transition Project
Roles and Responsibilities for Transition Methodology
Intellectual Property and Security
Risk Assessment and Contingency Plan
Knowledge Transfer and Training
Communications
Close-Out and Acceptance
Summary
References
9: Governance of Outsourcing Projects
The Basics of Governance in Traditional Outsourcing
Service-Level Agreement
Governing Structures
Roles Involved in Governing Outsourcing
Effective Governance Practices for Offshore Outsourcing
Summary
References
10: Managing Globally Distributed Teams
Challenges Faced by Globally Distributed Teams
Division of Work
Inter-site Coordination Mechanisms
Communication Practices
Tools and Technologies for Globally Distributed Teams
Collaborative Technologies
Socialisation and the Role of Face-to-Face Meetings in Global Teams
Challenges in Multicultural Teams
The Role of the Client in Distributed Collaboration
Summary
References
11: Captive and Shared Service Centres
Background
A Historical Perspective on Offshoring and Captive Centres
Captive-Centre Strategies
Future Trends in the Captive Industry
Shared Service Centres: Introduction
Shared Service Centres and Sourcing Models
COVID-19 and Beyond
Summary
Additional References
References
12: Innovation Through Outsourcing
The Innovation Through Outsourcing Debate
The Role of Strategy and Internal Capability to Innovate When Pursuing Innovation Through Outsourcing
Tapping into External Innovation Sources
How to Achieve Innovation Through Outsourcing: The Innovation Ladder
Step 1: Strategise Innovation
Step 2: Design-Measurement Instruments
Step 3: Assess Supplier’s Innovation Capability
Step 4: Design a Contract for Innovation
Step 5: Facilitate Relationship Building
Step 6: Measure Innovation Performance
Innovation Through Outsourcing: Other Findings
The Emergence of Innovation Eco-Systems
Summary
References
References
Index
