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Global Outsourcing Discourse

Exploring Modes of IT Governance

Authors: Eleni Lioliou, Prof. Leslie P. Willcocks

Publisher: Springer International Publishing

Book Series : Technology, Work and Globalization

Part of: Springer Professional "Wirtschaft+Technik" , Springer Professional "Technik" , Springer Professional "Wirtschaft"

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About this book

The aim of this book is to investigate the discursive power of two original, theoretical lenses when applied to real outsourcing arrangements and phenomena. The Transaction Cost Economics (TCE) and Foucauldian perspectives are brought to bear on five outsourcing relationships in order to test the application of these discourses to rich qualitative data over the outsourcing contractual life-cycle. This will be the first study illustrating the relevance of Foucauldian concepts of governmentality, discourse and power relations to the study of outsourcing arrangements, and will also incorporate the perspectives of both client and supplier organizations. Using discourse analysis, the objective is to critically deconstruct and provide fresh insight into the normative ‘outsourcing’ discourse that has grown up around global sourcing practices over the last 30 years.

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Table of Contents

Frontmatter

1. Exploring Outsourcing, Governance, and Discourse

Abstract

The focus of this book is the governance of information technology (IT) outsourcing arrangements. In the next section we look at how modern IT outsourcing and its discourse have developed across the 1989–2019 period. The normative outsourcing discourse that has evolved with outsourcing’s rise to prominence and globalism has generated a range of normative concepts, accepted ‘best practices’, and perennial and changing concerns, for which we provide an introduction here.

Eleni Lioliou, Leslie P. Willcocks

2. The Study of Information Technology Outsourcing

Abstract

As the practice of information technology (IT) outsourcing has been evolving, the research issues concerned with it, and the theories used to explain it, have shifted accordingly (Dibbern et al. 2004; Lacity et al. 2009; Willcocks et al. 2018). In the early stages, research on IT outsourcing was centred on the ‘make-or-buy’ decision. Researchers from economic perspectives supported that outsourcing is a reasonable option when contracting out the IT function is cheaper than developing it in-house (e.g. Williamson 1975; McFarlan and Nolan 1995; Ang and Straub 1998). On the other hand, scholars adopting a strategic perspective argued that “core activities should stay in-house, whilst non-core activities can be outsourced” (e.g. Jauch and Wilson 1979; Prahalad and Hamel 1990; Hamel 1991; Quinn and Hilmer 1994; Lacity and Willcocks 1995; Cox 1996). In this chapter we explore how the study of information technology outsourcing (ITO) and business process outsourcing (BPO) developed from these beginnings, and the themes and problems dealt with in the literature, with a particular focus on contracts, relationships, and governance—the main concerns of this book.

Eleni Lioliou, Leslie P. Willcocks

3. Inside Global Offshore Outsourcing in Insurance

Abstract

LION is a global financial institution offering a variety of products and services ranging from banking and insurance to asset management. It employs about 115,000 people and serves private, corporate, and institutional clients in more than 50 countries. In the mid-2000s offshore outsourcing really took off, and this case study provides one example of a successful experience. In 2006 the savings and loan division of LION Netherlands initiated a major outsourcing agreement. The agreement was signed with FDL, an organization that LION had already been co-operating with. At the time FDL was a leading outsourcing provider specializing in the financial industry. The company had a global presence and served more than 60 countries. The contract was on application development, support, and maintenance. The cost model appeared to be very efficient, as 70% of the labour was offshored to India, namely, in Bangalore and Chennai, and 30% was based in Amsterdam. The offshored service was delivered by an Indian supplier which was an FDL company.

Eleni Lioliou, Leslie P. Willcocks

4. Inside Global Outsourcing in Banking and Finance

Abstract

GIB is a major European bank with operations in more than 75 countries spread across Europe, the USA, and the Asia-Pacific. In 2012 it had more than 80,000 employees and provided a range of investment and financial services to individuals, corporations, and institutional clients. PV is a major IT company that provides a variety of products and services including software, BPO, and infrastructure management services and it is one of the primary vendors of GIB. PV is based in India; it employs about 55,000 people and is one of the country’s largest IT service exporters. GIB and PV have a long-standing outsourcing relationship. The project under examination was called X-RAY and had three objectives:

Eleni Lioliou, Leslie P. Willcocks

5. Inside Domestic Outsourcing with Multiple Suppliers

Abstract

DUTCH is an integrated financial service company based in the Netherlands. It offers a wide range of financial services including insurance, banking, and mortgage products to consumers, businesses, and institutions. DUTCH is the product of over 15 years of mergers and acquisitions between co-operative and competing insurance companies. From 2012 it was hiring more than 22,000 employees in more than 10 business and service units.

Eleni Lioliou, Leslie P. Willcocks

6. The Transaction Cost Economics Discourse

Abstract

This chapter presents analysis of the three case studies and five outsourcing contracts from a transaction cost economics (TCE) perspective. The TCE analysis takes place at two levels: in the first level of analysis we focus on the constructs of asset specificity and frequency and assess the predictive power of TCE over the decision to keep the IT activities in-house, outsource using a contract as a tool of governance, or outsource based primarily on relationships. In the second level of analysis we perform a similar assessment, but we also included the construct of uncertainty.

Eleni Lioliou, Leslie P. Willcocks

7. A Foucauldian Discourse Perspective

Abstract

This chapter re-examines the case study evidence in the light of the selected Foucauldian concepts of governmentality, power relations, and discourse. In the course of the analysis, certain other related Foucauldian concepts were brought to bear (e.g. surveillance, power/knowledge, discipline) where, we believe, this helps the analysis and provides further insight. The analysis of discourse was only partial in this chapter, as we wish also to comment more fully on TCE and outsourcing themselves as discourses and these matters are best reserved for a more general last chapter.

Eleni Lioliou, Leslie P. Willcocks

8. Conclusion: The Global Outsourcing Discourse

Abstract

This final chapter provides an overview of the set-up and research conducted and provides additional commentary on the research findings and contributions.

Eleni Lioliou, Leslie P. Willcocks

Backmatter

Title: Global Outsourcing Discourse
Authors: Eleni Lioliou
Prof. Leslie P. Willcocks
Copyright Year: 2019
Publisher: Springer International Publishing
Electronic ISBN: 978-3-319-74045-4
Print ISBN: 978-3-319-74044-7
DOI: https://doi.org/10.1007/978-3-319-74045-4