Skip to main content

Introduction: Riding the Waves of Outsourcing Change in the Era of Digital Transformation

  • Chapter
  • First Online:
Information Systems Outsourcing

Part of the book series: Progress in IS ((PROIS))

Abstract

The trend towards digital transformation has brought about a number of emerging challenges for information systems outsourcing. Organizations have to understand how to digitally innovate through IS outsourcing, how to govern outsourced digitalization projects, how to cope with complex multi vendor and micro-services arrangements, how to manage data sourcing and data partnerships, including issues of cybersecurity, and how to cope with the increasing demands of internationalization and new sourcing models, such as crowdsourcing, cloud sourcing and robotic process automation. This introductory chapter summarizes these challenges as three entangled or intermingled waves of change. It shows how recent research addresses these waves of change as a basis for organizations to learn how to successfully ride the waves.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Chapter
USD 29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD 149.00
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD 199.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info
Hardcover Book
USD 199.99
Price excludes VAT (USA)
  • Durable hardcover edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

Notes

  1. 1.

    “Machine learning aims to provide increasing levels of automation in the knowledge engineering process, replacing much time-consuming human activity with automatic techniques that improve accuracy or efficiency by discovering and exploiting regularities in training data.” (Langley and Simon 1995, p. 55).

  2. 2.

    According to Wikipedia drawing on the manufacturing context (based on Groover 2014), “Automation is the technology by which a process or procedure is performed with minimal human assistance.”.

References

  • Apte, U. M., & Davis, M. M. (2019). Sharing economy services: Business model generation. California Management Review, 61(2), 104–131.

    Google Scholar 

  • Apte, U. M., Sobol, M. G., Hanaoka, S., Shimada, T., Saarinen, T., Salmela, T., & Vepsalainen, A. P. J. (1997). IS outsourcing practices in the USA, Japan and Finland: A comparative study. Journal of Information Technology, 12(2), 289–304.

    Google Scholar 

  • Aubert, B. A., Kishore, R., & Iriyama, A. (2015). Exploring and managing the ‘‘innovation through outsourcing” paradox. Journal of Strategic Information Systems, 24, 255–269.

    Google Scholar 

  • Barrett, M., Davidson, E., Prabhu, J., & Vargo, S. (2015). Service innovation in the digital age: Key contributions and future directions. MIS Quarterly, 39(1), 135–154.

    Google Scholar 

  • Blohm, I., Leimeister, J. M., & Krcmar, H. (2013). Crowdsourcing: How to benefit from (too) many great ideas. MIS Quarterly Executive, 12(4), 199–211.

    Google Scholar 

  • Brynjolfsson, E., & McAfee, A. (2016). The second machine age: Work, progress, and prosperity in a time of brilliant technologies. Norton & Company.

    Google Scholar 

  • Brynjolfsson, E., & Mitchell, T. (2017). What can machine learning do? Workforce implications. Science, 358(6370), pp. 1530–1534.

    Google Scholar 

  • Capgemini. (2011). Digital transformation: A roadmap for billion-dollar organizations. Capgemini Consulting Study Report.

    Google Scholar 

  • Carmel, E., Lacity, M. C., & Doty, A. (2014). The Impact of Impact Sourcing: Framing a Research Agenda. In R. Hirschheim, A. Heinzl, & J. Dibbern (Eds.), Information systems outsourcing: Towards sustainable business value (pp. 397–429). Berlin, Heidelberg: Springer.

    Google Scholar 

  • Constantinides, P., Henfridsson, O., & Parker, G. G. (2018). Introduction—Platforms and infrastructures in the digitalage. Information Systems Research, 29(2), 381–400.

    Google Scholar 

  • Davenport, T., & Ronanki, R. (2018). Artificial intelligence for the real world. Harvard Business Review, 96(1), 108–116.

    Google Scholar 

  • Dibbern, J., Goles, T., Hirschheim, R. A., & Jayatilaka, B. (2004). Information systems outsourcing: A survey and analysis of the literature. ACM Sigmis Database: The DATA BASE for Advances in Information Systems, 35(4), 6–102.

    Google Scholar 

  • Dibbern, J., Winkler, J., & Heinzl, A. (2008). Explaining Variations in Client Extra Costs between Software Projects Offshored to India. MIS Quarterly, 32(2), 333–366.

    Google Scholar 

  • Dijkman, R., Sprenkels, B., Peeters, T., & Janssen, A. (2015). Business models for the internet of things. International Journal of Information Management, 35(6), 672–678.

    Google Scholar 

  • DiRomualdo, A., & Gurbaxani, V. (1998). Strategic intent for IT outsourcing. Sloan Management Review (Summer), 67–80.

    Google Scholar 

  • Foerderer, J., Kude, T., Mithas, S., & Heinzl, A. (2018). Does platform owner’s entry crowd out innovation? Evidence from google photos. Information Systems Research, 29(2), 444–460.

    Google Scholar 

  • Fogarty, D., & Bell, P. (2014). Should you outsource analytics? MIT Sloan Management Review, 55, 41–45.

    Google Scholar 

  • Gallivan, M. J., & Oh, W. (1999). Analyzing IT outsourcing relationships as alliances among multiple clients and vendors. In Annual International Conference on System Sciences. Hawaii: IEEE.

    Google Scholar 

  • Gartner. (2017). Market share analysis: IT outsourcing services, worldwide, 2016.

    Google Scholar 

  • Gawer, A., & Cusumano, M. A. (2002). Platform leadership. Cambridge, MA: Harvard Business School Press.

    Google Scholar 

  • Geiger, D., & Schader, M. (2014). Personalized task recommendation in crowdsourcing information systems—Current state of the art. Decision Support Systems, 65, 3–16.

    Google Scholar 

  • Gewald, H., & Dibbern, J. (2009). Risks and benefits of business process outsourcing: A study of transaction services in the german banking industry. Information & Management, 46(4), 249–257.

    Google Scholar 

  • Ghazawneh, A., & Henfridsson, O. (2013). Balancing platform control and external contribution in third-party development: The boundary resources model. Information Systems Journal, 23(2), 173–192.

    Google Scholar 

  • Gopal, A., & Koka, B. R. (2012). The asymmetric benefits of relational flexibility: Evidence from software development outsourcing. MIS Quarterly, 36(2), 553–576.

    Google Scholar 

  • Gregory, R. W., Keil, M., Muntermann, J., & Mähring, M. (2015). Paradoxes and the nature of ambidexterity in IT transformation programs. Information Systems Research, 26(1), 57–80.

    Google Scholar 

  • Groover, M. P. (2014). Fundamentals of modern manufacturing: materials, processes, and systems. New York: Wiley.

    Google Scholar 

  • Huber, T. L., Kude, T., & Dibbern, J. (2017). Governance practices in platform ecosystems: Navigating tensions between co-created value and governance costs. Information Systems Research, 28(3), 563–584.

    Google Scholar 

  • IDC. (2019). Worldwide semiannual digital transformation spending guide. International Data Corporation (IDC).

    Google Scholar 

  • Kaganer, E., Carmel, E., Hirschheim, R., & Olsen, T. (2013). Sloan Management Review, 54(2), 23–32.

    Google Scholar 

  • Kakabadse, A., & Kakabadse, N. (2002). Trends in outsourcing: Contrasting USA and Europe. European Management Journal, 20(2), 189–198.

    Google Scholar 

  • Kelly, T. (2002). A brief history of outsourcing. Global Envision.

    Google Scholar 

  • Lacity, M. C., & Willcocks, L. (2018). Robotic process and cognitive automation: The next phase. Stratford-upon-Avon: Steve Brookes Publishing.

    Google Scholar 

  • Lacity, M. C., & Willcocks, L. P. (2016). A new approach to automating services (58), 40–49.

    Google Scholar 

  • Lacity, M. C., & Willcocks, L. P. (2001). Global information technology outsourcing: In search of business advantage. Chichester: Wiley.

    Google Scholar 

  • Langley, P., & Simon, H. A. (1995). Applications of machine learning and rule induction. Communication of the ACM, 38(11), 55–64.

    Google Scholar 

  • Linder, J. (2004). Outsourcing for radical change. NY: AMACOM.

    Google Scholar 

  • Lusch, R., & Nambisan, S. (2015). Service innovation: A service-dominant logic perspective. MIS Quarterly, 39(1), 155–175.

    Google Scholar 

  • Mears, J., & Bednarz, A. (2005, May 30). Take it all’ outsourcing on the wane.

    Google Scholar 

  • Oshri, I., Kotlarsky, J., & Gerbasic, A. (2015). Strategic innovation through outsourcing: The role of relational and contractual governance. The Journal of Strategic Information Systems, 24(3), 203–216.

    Google Scholar 

  • Overby, S. (2018). It outsourcing: Multi-Billion-Dollar Mega Deals End in Break Up, CIO, March 31. http://www.cio.com/article/2419347/outsourcing/it-outsourcing--multi-billion-dollar-mega-deals-end-in-break-up.html.

  • Oshri, I., Dibbern, J., Kotlarsky, J., & Krancher, O. (2019). An information processing view on joint vendor performance in multi-sourcing: The role of the guardian. Journal of Management Information Systems, 36(4), 1248–1283.

    Google Scholar 

  • Pastin, M., & Harrison, J. (1974). Social responsibility in the hollow corporation. Business & Society Review, 54.

    Google Scholar 

  • Rottman, J. W., & Lacity, M. C. (2004). Twenty practices for offshore sourcing. MIS Quarterly Executive, 3(3), 117–130.

    Google Scholar 

  • Rutschi, R. C., & Dibbern, J. (2020). Towards a framework of implementing software robots: Transforming human-executed routines into machines. ACM SIGMIS Database: The DATA BASE for Advances in Information Systems, 51(1), 104–128.

    Google Scholar 

  • Sabherwal, R. (1999). The role of trust in outsourced IS development projects. Communications of the ACM, 42(2), 80–86.

    Google Scholar 

  • Sahay, S., Nicholson, B., & Krishna, S. (2003). Global IT outsourcing. Cambridge: Cambridge University Press.

    Google Scholar 

  • Schmeiss, J., Hoelzle, K., & Tech, R. P. G. (2019). Designing governance mechanisms in platform ecosystems: Addressing the paradox of openness through blockchain technology. California Management Review, 62(1), 121–143.

    Google Scholar 

  • Schneider, S., & Sunyaev, A. (2016). Determinant factors of cloud-sourcing decisions: Reflecting on the IT outsourcing literature in the era of cloud computing. Journal of Information Technology, 31(1), 1–31.

    Google Scholar 

  • Svahn, F., Mathiassen, L., & Lindgren, R. (2017). Embracing digital innovation in incumbent firms: How volvo cars managed competing concerns. MIS Quarterly, 41(1), 239–254.

    Google Scholar 

  • Tiwana, A. (2002). The knowledge management toolkit: Orchestrating IT, strategy, and knowledge platforms. Prentice Hall International.

    Google Scholar 

  • Tiwana, A. (2014). Platform ecosystems: Aligning architecture, governance, and strategy. Oxford: Elsevier LTD.

    Google Scholar 

  • van der Aalst, W. M. P., Bichler, M., & Heinzl, A. (2018). Editorial: Robotic process automation. Business & Information Systems Engineering, 60, 269–272.

    Google Scholar 

  • Venters, W., & Whitley, E. A. (2012). A critical review of cloud computing: researching desires and realities. Journal of Information Technology (Palgrave Macmillan), 27(3), 179–197.

    Google Scholar 

  • Weinhardt, C., Anandasivam, A., Blau, B., Borissov, N., & Meinl, T. (2009). Cloud computing—A classification, business models, and research directions. Business & Information Systems Engineering, 1(5), 391–399.

    Google Scholar 

  • Westerman, G., Bonnet, D., & McAfee, A. (2014). Leading digital: Turning technology into business transformation. Cambridge, MA: Harvard Business Review Press.

    Google Scholar 

  • Willcocks, L., & Lacity, M. (2016). Service automation: Robots and the future of work.

    Google Scholar 

  • Winkler, J. K., Dibbern, J., & Heinzl, A. (2008). The impact of cultural differences in offshore outsourcing-case study results from German-Indian application development projects. Information Systems Frontiers, 10(2), 243–258.

    Google Scholar 

  • Yinghui, Z., Deng, R., Liu, X., & Zheng, D. (2018). Blockchain based efficient and robust fair payment for outsourcing services in cloud computing. Information Sciences, 462, 262–277.

    Google Scholar 

Download references

Author information

Authors and Affiliations

Authors

Corresponding author

Correspondence to Jens Dibbern .

Editor information

Editors and Affiliations

Rights and permissions

Reprints and permissions

Copyright information

© 2020 Springer Nature Switzerland AG

About this chapter

Check for updates. Verify currency and authenticity via CrossMark

Cite this chapter

Dibbern, J., Hirschheim, R. (2020). Introduction: Riding the Waves of Outsourcing Change in the Era of Digital Transformation. In: Hirschheim, R., Heinzl, A., Dibbern, J. (eds) Information Systems Outsourcing. Progress in IS. Springer, Cham. https://doi.org/10.1007/978-3-030-45819-5_1

Download citation

Publish with us

Policies and ethics