Joseph W. Rottman

A review of the predictors, linkages, and biases in IT innovation adoption research

We present a review and analysis of the rich body of research on the adoption and diffusion of IT-based innovations by individuals and organizations. Our review analyzes 48 empirical studies on individual and 51 studies on organizational IT adoption published between 1992 and 2003. In total, the sample contains 135 independent variables, eight dependent variables, and 505 relationships between independent and dependent variables. Furthermore, our sample includes both quantitative and qualitative studies. We were able to include qualitative studies because of a unique coding scheme, which can easily be replicated in other reviews. We use this sample to assess predictors, linkages, and biases in individual and organizational IT adoption research. The best predictors of individual IT adoption include Perceived Usefulness, Top Management Support, Computer Experience, Behavioral Intention, and User Support. The best predictors of IT adoption by organizations were Top Management Support, External Pressure, Professionalism of the IS Unit, and External Information Sources. At the level of independent variables, Top Management Support stands as the main linkage between individual and organizational IT adoption. But at an aggregate level, two collections of independent variables were good predictors of both individual and organizational IT adoption. These were innovation characteristics and organizational characteristics. Thus, we can consistently say that generic characteristics of the innovation and characteristics of the organization are strong predictors of IT adoption by both individuals and organizations. Based on an assessment of the predictors, linkages, and known biases, we prescribe 10 areas for further exploration.

Global outsourcing of back office services: lessons, trends, and enduring challenges

Purpose – To identify key lessons, trends and enduring challenges with global outsourcing of back office services.Design/methodology/approach – The authors extract lessons, project trends, and discuss enduring challenges from a 20 year research program conducted by these authors and their extended network of co‐authors and colleagues.Findings – The authors identify seven important lessons for successfully exploiting the maturing Information Technology Outsourcing (ITO) and Business Process Outsourcing (BPO) markets. The lessons require back office executives to build significant internal capabilities and processes to manage global outsourcing. The authors predict 13 trends about the size and growth of ITO and BPO markets, about suppliers located around the world, and about particular sourcing models including application service provision, insourcing, nearshoring, rural sourcing, knowledge process outsourcing, freelance outsourcing, and captive centers. The authors identify five persistent, prickly issues...

Successful knowledge transfer within offshore supplier networks: a case study exploring social capital in strategic alliances

Managing a global network of suppliers presents considerable challenges for large multi-national corporations. Chief among these is how to effectively transfer knowledge among members of strategic alliances while maintaining tight control over intellectual property. This paper highlights the efforts of a Fortune 100 manufacturing firm (hereafter US Manufacturing) and its management of global IT suppliers. Using a social capital framework developed by Inkpen and Tsang (2005), we explore the supplier network at three levels (structural, cognitive, and relational) and present eight proven practices for creating, managing, and exploiting social capital within strategic alliances. The Inkpen and Tsang framework examines the linkages between knowledge transfer and social capital for three network types: intracorporate networks, strategic alliances, and industrial districts. We use the strategic alliance of US Manufacturing and its suppliers to illustrate salient social capital dimensions and the conditions and practices that facilitated knowledge transfer. These practices enabled US Manufacturing to improve knowledge transfer, decrease development costs, shorten cycle time, increase the quality of developed deliverables, quickly respond to changes in the regulatory environment, and, most importantly, build strong, strategic relationships with its suppliers.

A US Client's learning from outsourcing IT work offshore

Based on 45 interviews and significant documentation, we explore the offshore outsourcing experiences of a US-based biotechnology company. This company offshore outsourced 21 IT projects to six suppliers in India. Senior managers and the official documents from the Program Management Office consistently reported that offshore outsourcing was successful in reducing the company’s IT costs. But interviews with knowledgeable participants actually managing the projects suggest that many projects were not successful in meeting cost, quality, and productivity objectives. We found evidence that this company’s offshore strategy to simply replace domestic contractors with cheaper, offshore suppliers was a poor fit with its social and cultural contexts. Specifically, we found that strong social networks between the company’s internal IT employees and domestic contractors were not easily replicated with offshore suppliers. Furthermore, the internal project management processes were often incompatible with offshore suppliers’ processes. This paper also analyzes seven project characteristics that differentiate highly-rated projects from poorly-rated projects. These project characteristics are type of IT work, size of supplier firm, location of supplier employees (onsite/offshore), dollar value of the contract, duration of the project, timing of the project, and client unit managing the project. The paper concludes with four overall insights for clients and suppliers.

Global sourcing: recent trends and issues

Purpose – The purpose of this paper is to review recent trends and issues in global IT sourcing and to introduce papers in the special issue: “Social, managerial and knowledge aspects in global IT sourcing”.Design/methodology/approach – The paper examines trends by regions including Brazil, Russia, India and China and also trends in Captive Centres and their strategies.Findings – There will be a continuing rise in outsourcing revenues for global outsourcing, with BPO overtaking ITO within five years. Multi‐sourcing will continue to be the dominant trend. India will continue to dominate but its role will change. China heralds promise but will still struggle to achieve scale in Western European and North American markets. Emerging country competition will intensify. Software as a service will be a “slow burner” but will gain momentum in the second half of the next decade. Near‐shoring will be a strong trend. Outsourcing, by offering a potential alternative, will help discipline in‐house capabilities and ser...

Offshore outsourcing of IT work

Global sourcing of information technology (IT) is the idea that IT work can be seamlessly distributed anywhere in the world to the best source in terms of overall value.1 The “best source” can include combinations of in-house provision, offshore captive centers, outsourcing to multiple suppliers, and even joint ventures.2 Senior executives dream of creating agile global IT networks to lower costs, increase quality, realize seamless sunrise-to-sunrise production, deliver faster, and disperse risks. We present evidence in this book, based on 232 interviews with people from 68 companies, that some companies are indeed achieving these business benefits from global IT sourcing.

Successfully outsourcing embedded software development

A large US company, UIC successfully outsources embedded software development after applying people- and project-focused practices developed from a prior failed attempt. In this article the author describes 10 practices that have helped UIC create an offshore development strategy that produces embedded software at a lower cost while maintaining quality. These lessons show how both the people involved in offshore projects and the projects themselves must be treated differently from internally developed projects. Even with the high complexities and intellectual property concerns surrounding embedded software development, UIC has used these practices to establish processes that ensure successful delivery and protection of UICs intellectual property.

Effects of offshore outsourcing of information technology work on client project management

Purpose – While strategic outsourcing decisions are crafted by senior executives, they are executed by middle managers and staff who may not share the vision or enthusiasm of their senior leadership team. The purpose of this paper is to provide a deep understanding of the effects of outsourcing on one of those stakeholder groups – the client project managers – responsible for the implementation of outsourcing strategies, and to identify practices to better empower and enable them.Design/methodology/approach – Interviews with 67 client project managers in 25 organizations responsible for integrating suppliers into project teams.Findings – Client project managers report 27 effects of outsourcing on their roles, including six positive effects and 21 negative effects.Practical implications – Senior executives who implemented the following practices had more success with their outsourcing decisions: provide enough resources to implement the sourcing strategy, be willing to change internal work practices, build...

Field of dreams: building IT capabilities in rural America

Purpose – The purpose of this paper is to provide industry insights on the business models, practices, and capabilities that suppliers need to deliver cost‐effective information technology (IT) outsourcing services from rural locations within the USA. As rural outsourcing has not yet been studied by academics, many questions have not yet been answered. How can suppliers attract enough talent to rural areas to make rural outsourcing viable? How can suppliers scale operations? Will the value proposition attract serious clients? An ongoing research project was launched to answer these and other questions about rural outsourcing. This paper aims to report on the first set of findings based on four case studies.Design/methodology/approach – This paper reports on the results from four case studies of rural outsourcing suppliers. In total, 35 semi‐structured interviews were conducted with founders, executives, delivery center managers, and delivery team members and a visit was made to a rural delivery center own...

Outsourcing and Offshoring Engineering Projects: Understanding the Value, Sourcing Models, and Coordination Practices

In this paper, we review recent developments in the field of outsourcing and offshoring and the implications for engineering management. We examine three aspects involved in outsourcing and offshoring, namely, sourcing models, coordination, and value extracted from outsourcing projects. We conclude that additional research is needed on recent trends in outsourcing and the impact of such change process on the practice of engineering management.