Effects of process and outcome controls on business process outsourcing performance: Moderating roles of vendor and client capability risks

Practitioner's view of barriers to software outsourcing partnership formation: An empirical exploration

“…Likewise, it was found that 73% of the included articles in our SLR study have declared “insufficient quality of technical capability” and “poor technological infrastructure” as potential hurdles for SOP. “Technical barrier” includes task complexity, poor professional skills, lack of familiarity with the outsourced technology, and lack of research and innovative ability while “technological barrier” may be due to organization outdated technology, lack of legacy and new system integration, and reluctance to use new technology . Failure to develop competence in the technology leads vendor to a deterioration of operational capabilities and services, which results in unsatisfaction of the performance expectation of its client .…”

“…Without effective monitoring in outsourcing, vendors may behave opportunistically and make choices, which will increase their benefit at the cost of the client . Those clients who have anticipated undesirable consequence will invest constantly in monitoring and controlling the vendor's software development process and the quality of software . In some circumstances, organizations' proficiency is unacceptably decreased up to half of the development efforts consumed by outflows such as communication for coordination and information exchange .…”

“…The results are align with other surveys in the relevant domain such as Niazi et al, Gopal et al, Delen et al, Abdullah and Verner, Samantra et al, Verner, Tsai et al, Delen et al, Søderberg et al, Teo and Bhattacherjee, Shahin et al, Khan et al, Kinnula et al, Lahiri and Kedia, Khan and Azeem, and some other researchers Niazi et al confirms the positive impact of trust in the formation of software outsourcing alliance between vendor and client organizations. The findings of Wang suggest that, as compared with other collaboration models, the offshore was more susceptible to issues of communication and coordination. In view of Dhar and Balakrishnan, both formal and informal communication between outsourcing associates are deliberated vigorous for the productive relationship. According to Delen et al, the reasons why outsourcing relationship fails are somehow linked to barriers such as pitiable communication, lack of capability, lack of trust, divergent goals, and poor relationship management. Mathew and Chen suggest that OSD arrangement should be made successful by avoiding relational risks like debasement of service performance and quality mishaps. In view of Verner, vendor's lack of technical capability and experience can result in failure. In view of Herath and Kishore, lack of technical synchronization between the client and vendor can have an adversative effect on the outsourcing association. According to Verner et al, weak organizational proximity and work dispersion cause problems between vendor and client. Søderberg et al suggest employing staff who have established cross‐cultural understanding and capable of accurately and rapidly sensing, interpreting, and responding to problematic situations due to cross‐cultural differences. In view of Teo and Bhattacherjee, software development projects require significant investments in knowledge gaining and distribution, such as giving domain‐specific training to vendor staff, to be aware of client's corporate trade and manoeuvre. Such investments may have no or very little value in case of contract termination in a short run. According to Samantra et al, high hidden and switching cost may result in potential loss and disappointment, especially when there is no strategy specifically defined to focus on cost reduction. In view of Khan and Khan, poor contract management, insufficient contracting abilities, liability outside the contract, and poor management of the relationship on specified contractual terms may lead relationship towards failure. According ...…”

“…Literature reveals that the Indian software industry is the proven leader in high‐quality provision, which makes India a dominant country in quality software production in the international market In view of Liu et al, those clients who have anticipated undesirable consequence will invest constantly in monitoring and controlling the vendor's software development process and the quality of software. According to Delen et al, in some circumstances, organizations proficiency is deplorably decreased up to half of the development effort consumed by outflows such as communication for coordination and information exchange. In view of Nguyen‐Duc, nowadays' organizations not only do outsourcing to utilize the cost advantages but to benefit from the improved quality that offshore vendors provide.…”

The Impact of Control and Complexity on Supply Network Performance: An Empirically Informed Investigation Using NK Simulation Analysis

“…Research has analyzed different modes of control, mainly distinguishing between formal and informal control (Li et al., ; Tiwana & Keil, ; Liu, ). While formal control of behavior and outcome is accomplished by means of contracts (Li et al., ; Liu, Wang, & Huang, ), informal control uses clan and self‐control mechanisms (Liu, ). In these studies, control is viewed as a dyadic and unidirectional construct exerted by the controller (usually the buyer) on the controlee (usually the supplier) (Stouthuysen, Slabbinck, & Roodhooft, ).…”