Managing Change In It Outsourcing
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Managing Change in IT Outsourcing
Through case studies this volume provides evidence that a link between sourcing capabilities and organizational structure contributes to a positive sourcing performance. Reveals that providers who are able to adapt to changing client circumstances, whilst establishing a fit, succeed in achieving a sustainable performance.
The Role of Organisational Change Management in Offshore Outsourcing of Information Technology Services
Author: T. R. Ramanathan
language: en
Publisher: Universal-Publishers
Release Date: 2009-03
This research study seeks to understand the nature of organisational change with respect to offshore outsourcing of information technology services in a multinational pharmaceutical company, and to examine the effectiveness of approaches used to manage this change so that lessons may be drawn from these experiences. Despite the abundant literature on effective organisational change management, the key factors that need to be managed properly at different stages of the offshore outsourcing process are not well understood. The research adopts a processual view to paint a broad picture of the issues involved in these different stages. A generic process model of change, based on the review of the change literature, was first developed to represent how change was intended to occur. This model focuses on the following four stages in the change process: context, diagnosis and planning, implementation, and institutionalisation. The research employs an interpretive case study approach and draws on fieldwork from three independent information systems departments (cases) of the company, where offshore outsourcing programmes were implemented. Qualitative data from semi-structured interviews, direct observation and document analysis are analysed by applying the generic process model to produce a detailed account of the way in which change was managed in the case organisations. The findings reveal that a combination of contextual factors, both external and internal to the company, influenced the adoption and use of offshore outsourcing in the case organisations. Externally, the economic forces were found to be the main catalyst for the change, while internally the role of the executive leadership and the lack of internal resources further explain the motivations behind the adoption of offshore outsourcing. The study illustrates that achieving successful outcomes from offshore outsourcing activities critically depends on the organisation adequately addressing a number of factors, such as conveying a sense of urgency, developing and communicating the vision, identifying the benefits of change and how they will be delivered, generating short-term wins, providing education and training, developing a fit between the change and organisational culture, etc., throughout the change process. The findings also highlight the effects of offshore outsourcing on the case organisations, including change in job roles and responsibilities and organisational learning activities that enable corrective actions to improve change management efforts. An important contribution of this research is the development of a model providing a more comprehensive understanding of the change process associated with the implementation of offshore IT outsourcing. Recommendations for policy makers and change managers to improve change management practice based on the research findings, as well as recommendations for further research, form a significant part of the conclusions.
Managing the People Side of Change
There are great benefits to be gained from outsourcing. Many organisations understand the benefits they can achieve from outsourcing but few manage to realise those benefits in full. So often the root cause of that failure is because they have ignored the people factors that can inhibit change and even derail it. In some cases people may not understand the reasons for the outsource programme, in others people may have reasons of their own for not wanting the change to be successful. Whatever the people side of the change is, all these factors can be successfully managed so companies and staff can fully realise the benefits of outsourcing.Having been involved in successfully managing change in IT Outsourcing over the years, I have gained many insights into the people factors in change management and developed effective strategies and tactics that smooth the way to making an outsource programme successful, starting with, but not limited to, ensuring that the staff involved fully buy in to the process. This book is based on the practical steps that I have put in place to ensure success. Every step identified here is practical and effective and though some of them will seem just good common sense, I do know that in many such programmes they are ignored. Reading this book will give readers some new ideas and also provide them with a straightforward reminder of good practice to help them manage change effectively, engaging the staff and producing a common purpose.In less than an hour's reading, this book identifies the issues, explains how they come about and gives solutions that will eliminate or, at least, mitigate the major problems and provide a firm basis for implementing the changes and creating a stronger business by fully realising the benefits of an outsource programme.