• Title/Summary/Keyword: Outsourcing Performance

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Information Systems Outsourcing: An Integrative Analysis on Contract and Trust from Contingency Perspective (정보시스템 아웃소싱: 상황관점에서 본 계약과 신뢰의 통합적 분석)

  • Lee, Jong-Man;Nam, Ki-Chan;Kim, Yong-Jin
    • Asia pacific journal of information systems
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    • v.17 no.4
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    • pp.133-163
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    • 2007
  • Growth in the outsourcing market signals that firms of all sizes believe outsourcing will ultimately deliver many benefits and conveniences. But there are not many firms satisfied with the results of outsourcing. What is more, previous researches were fragmentary analyses focused on specific variables of outsourcing such as sourcing decisions, partnership rather than comprehensive analysis. Thus, they could not propose general systematic methodologies applicable to the real situation. To solve these problems, we developed an integrated theoretical framework that considered both contract with the hard side and trust with the soft side from a contingency viewpoint and tested this model using 143 data of Korean companies executing outsourcing. In addition, we examined how situational factors(outsourcing task complexity and outsourcing management competence) affects each path in the research model. The results of this study are as follows. First, it was proved the theory that trust is not a substitute for contract but its complement. Previous empirical studies on outsourcing success factors were focused on the establishment of successful partnership on the assumption that trust can replace contract in many situations. According to the results of our empirical analysis, however, contract and trust were in a mutually complementary relation with each other and their emphasis was different. Furthermore, different from previous researches, it was found effective to use trust as a supplementary tool and contract as a main means in outsourcing management strategy. Second, this study provided an integrated view that sees both contract and trust from a contingency viewpoint in theoretically reestablishing the relationship between contract and trust. Previous researches leaned to specific variables or theory-centered fragmentary analysis, but this study proposed a more practical and integrated research model and tested its effectiveness. Based on the results, with the model, decision makers are expected to scrutinize outsourcing situation more closely and to have a practical insight to the situation. Third, it was found that contract mechanism and trust building do not have a direct effect on outsourcing performance but relationship management intensity mediates the effect of contract mechanism and trust building. This is considered significantly meaningful to outsourcing partners who have believed that outsourcing would be successful if a contract is made properly or trust is built. Lastly, the path from trust building to relationship management intensity was moderated by informed buying, as the path coefficients from trust building to relationship management intensity varied by the degree of informed buying competence.

The Beginning of New Change: Maeil's Outsourcing (새로운 변화의 시작, 아웃소싱-매일유업 사례)

  • Moon, Yong-Eun;Han, Sang-Cheol;Hong, Yu-Jin
    • Information Systems Review
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    • v.7 no.2
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    • pp.257-276
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    • 2005
  • The most distinctive characteristic in Maeil's outsourcing strategy was the rapid decision process done by CEO. At first, Maeil made a contract with a outsourcing vendor based on 50% investment for 5 years. However, 3 years later Maeil changed their outsourcing strategy from 10% share to 100% outsourcing. This is for the efficiency improvement and cost reduction. Also, Maeil organized separate TFT which could control IS quality. This TFT reviewed the feasibility of requirement analysis and IS planning process. Through this cooperation between TFT and the outsourcing vendor, Maeil could get the stable IT development and operation. During last 5 years, Maeil achieved great performance in the area of IT development and operation from the outsourcing. The present issue related to outsourcing strategy is whether Maeil will continue the current contract or change the vendor due to the anxiety of becoming a captive customer.

An Empirical Study on the Obligations of Contractual Parties for Successful IT Outsourcing (성공적인 IT 아웃소싱을 위한 계약당사자간 책임 요소에 대한 실증 연구)

  • Kim, Young-Gon
    • Journal of the Korean Society for information Management
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    • v.24 no.3
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    • pp.21-41
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    • 2007
  • IT outsourcing has become a critical component of organizations, but improper expectations, ambiguous contracts and unclear goals frequently cause the failure of IT outsourcing. Especially we have to be concerned about the uncareful management of customer-supplier relationships based on a psychological contract perspective. This study focuses on the obligations of contractual parties for IT outsourcing which influence the outsourcing relationship(OR) and the successful performance of IT outsourcing(OP). The supplier obligations consist of the achievable infrastructure(S1) and capability(S2), and the customer obligations is composed of the acceptable environment(C1) and acceptability(C2) for IT outsourcing. This paper shows that the S1, S2, and C2 have an effect on the OR, the OR on the OP, and the S2 also on the OP directly. The four components of customer-supplier obligations are mutually related to each other. What is more, we must notice that the S2 has strong connections with the C2.

Effects of Job Satisfaction according to the Understanding of Organization Culture between Outsourcing Workers and Regular Workers (병원 아웃소싱 직원과 정규직원의 조직문화 인식이 직무에 미치는 영향)

  • Jang, Hyo-Kang;Ryu, Hwang-Gun;Bae, Sung-Kwon
    • The Journal of the Korea Contents Association
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    • v.9 no.2
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    • pp.279-288
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    • 2009
  • The purposes of this study were to understand the differences of general characteristics, to compare understanding level of the organization cultures, and to develop more good management methods between outsourcing workers and regular workers in hospitals. Major results of this study were as follows: First, regular workers had higher level than outsourcing workers in major understanding on job satisfaction and organization cultures(pride of their jobs, recognition level of job performance ability, satisfaction on ordering method. etc.). Second, the results showed that the level of job performances related with effective management of the factors in job satisfaction and involvement. Third, through multiple regression analysis to understand factors on job satisfaction and involvement, we understood that regular workers were effected by vision performance of hospital and their value view-point, and outsourcing workers were influenced by recognition levels and education levels of hospital vision, Therefore, to maximize level of job satisfaction and involvement. we have interest in development of education program for outsourcing workers, and selection of adequate persons in hospital culture.

Study on economic effects of outsourcing of food materials on the hotel kitchen - Focus on cooking Western food in the first class hotel - (식재료 아웃소싱이 경제적 주방에 미치는 영향에 관한 연구 - 특1급호텔 양식조리를 중심으로 -)

  • 성태종
    • Journal of Applied Tourism Food and Beverage Management and Research
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    • v.13 no.2
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    • pp.45-69
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    • 2002
  • This study is designed to examine feasibility and limitation of outsourcing in cooking Western food in a hotel, to interpret importance of outsourcing(eg. outside order, outside procurement, outside supply) in a broad sense in order to reinforce the core capacity in the cooking department, and to know whether the cooking human power is efficiently used and how much the chefs recognize outsourcing of food materials. As many companies conduct restructuring to cut down its size, the reduction of human power led the Western food cooking in the hotel to lower core capacities, lower quality, and lower efficiency. In addition, the sagging morale of chefs undermined creativity. To change from the traditional kitchen to an economic kitchen needs to look into importance of outsourcing, cognitive attitude of chefs, relation with outside suppliers. Here suggests performance of positive changes in the structure The study examined feasibility and limitation of outsourcing in the hotel kitchen as well as chefs' cognitive attitude toward outsourcing of food materials to reinforce core capabilities of the hotel kitchen. 1. Companies of outsourcing are selected according to variability of price conditions, flexibility of contract conditions, popularity of the outsourcing company, and reputation of the outsourcing company. 2. The importance of outsourcing in the Western food cooking is divided into 4 factors such as standard of selecting outsourcing companies, policies of cooking manu, quality of cooking, and quantity of cooking. 3. The most feasible section in outsourcing of food materials is a process of kneading flour for bread, which shows that many Western-food chefs expect to put higher possibility of outsourcing on the kneading. In other words, when it comes to confectionery and bakery, there are many outside expert processing companies supplying high quality products. In the order of outsourcing feasibility, sauce is followed by processed vegetable, garnish of main dish, and soup. The least feasible section in outsourcing of food materials is appetize. Appetize includes a concept of a improvised dish and needs speed. Due to its color, freshness, and sensibility of taste, the appetize plays a key role in the Western food cooking. 4. When outsourcing is taken in place, the highest risk is to lower the inner cooking skills. Therefore chefs in charge of the Western food sequently recognize both internal problems including storage of cooking skills, unstability of layoffs, and loss of cooperation between departments, and external problems including inferior goods, difficulty of differentiating manu, delay of delivery, and expiration date. It shows that most of the Western food chefs consider risks of the internal problems at first. 5. A effective outsourcing needs appropriate selection of outsourcing companies, maintenance of credibility, active communication, check and management of hygiene. However regardless of their position or career, chefs in charge of the Western food have the same cognitive attitude toward selecting successful outsourcing companies after the outsourcing system is enforced. The core of cooking, or a final stage in the full process of so-called artistic cooking, should be treated with insourcing. Reduction of several cooking processes resulted in shortened cooking time, increased efficiency, faster cooking, cutting the waiting-lines, and finally more room for customers. The outsourcing system can reduce or eliminate the following processes in cooking: buying various food materials, checking, storing, preparing, and processing. Especially in the Western food cooking department of a hotel, the outsourcing system should be enforced to make an economic kitchen and to efficiently manage it. Wow it's time to change from the traditional kitchen to an economic kitchen in the hotel cooking department. For that, the cooking department should become a small but strong organization by outsourcing except its core work.

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The Impact of Utilizing Online Outsourcing in Startups on Member Organizational Commitment and Job Satisfaction (스타트업의 온라인 아웃소싱 활용이 구성원 조직몰입과 직무만족에 미치는 영향에 관한 연구)

  • Kim, Joonhak;Park, Jae-Whan
    • Asia-Pacific Journal of Business Venturing and Entrepreneurship
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    • v.19 no.3
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    • pp.139-153
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    • 2024
  • The importance of sustainable growth and cost reduction has increased globally, leading to the expansion of outsourcing by companies. Additionally, the spread of the platform economy has brought changes in the way we work, and the online outsourcing market, where tasks are mediated through platforms, is growing. Academically, while research on general outsourcing is actively conducted, studies on online outsourcing are relatively insufficient compared to its actual utilization. This study aims to analyze the factors and performance factors of online outsourcing utilization by startups, to identify the effects and concerns of using online outsourcing from multiple perspectives, and to suggest the roles of various stakeholders for effective utilization and industry development. For the research, a survey was conducted with 281 employees of startups who have experience in using online outsourcing, and the main findings are as follows. First, the enhancement of efficiency, profitability, and innovation through the use of online outsourcing positively affects organizational commitment and job satisfaction of startup members. Especially, the improvement of efficiency due to the use of online outsourcing has a significant effect on enhancing job satisfaction. Second, concerns about the burden of online outsourcing fees or uncertain outcomes negatively affect organizational commitment and job satisfaction. Third, there are perceptual differences in the motivations and performance regarding the utilization of online outsourcing depending on the job position. Practitioners perceive that the use of online outsourcing increases organizational commitment, whereas managers have relatively higher concerns about the uncertainty of outsourced task outcomes and information security. Through this study, the possibility that human resource shortages and employee management issues in startups can be improved through online outsourcing was confirmed. By verifying the influence of various factors of online outsourcing utilization, this study also provides meaningful implications for establishing business strategies for online outsourcing intermediary platform companies and for formulating startup support policies by government and other startup support organizations.

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Effect of Relational Structure with Multiple Vendors on IT Outsourcing Performance: Transaction Cost Theory Perspective (복수 공급업체와의 관계구조가 정보기술 아웃소싱 성과에 미치는 영향: 거래비용 이론 관점)

  • Koo, Yunmo;Lee, Jae-Nam;Son, Insoo
    • Information Systems Review
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    • v.18 no.1
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    • pp.177-197
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    • 2016
  • Information technology (IT) outsourcing is considered an effective strategy to manage and maintain organizational technologies in a rapidly changing business environment. In particular, to meet diverse market needs, many organizations that outsource their IT functions practice a multi-vendor approach as their main outsourcing strategy. Although a few studies have been conducted about the multi-vendor approach, most previous works primarily emphasized conceptual arguments and normative prescriptions. In addition, scant attention has been directed toward the relational structure between the client and multiple vendors in the multi-vendor approach and its implications for outsourcing success. This study proposes a model from the transaction cost perspective by conceptualizing two dominant relational structures of the multi-vendor approach, namely, single-vendor dominant model and the multi-vendor dominant model, and hypothesizing their relationships with two outsourcing outcomes, project success and user satisfaction. The proposed model is examined using the data collected from 246 companies that have implemented multi-vendor outsourcing. As expected, results indicate that the single-vendor dominant model has a more significant impact on project success, whereas the multi-vendor dominant model has a more significant impact on user satisfaction. The study concludes with the theoretical implications and directions for future research.

A study on the effect of employment flexibility on the business performance in the computer programming, system consultancy and related service industry (고용유연성이 기업성과에 미치는 영향에 관한 연구 : 컴퓨터 프로그래밍, 시스템 통합 및 관리업을 중심으로)

  • Cho, Jae-Jeong;Rhew, Sung-Yul
    • Journal of Korean Society for Quality Management
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    • v.38 no.3
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    • pp.425-438
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    • 2010
  • This study investigates what effects employment flexibility have on the business performance in the computer programming, system consultancy and related services. An analysis of the effects of employment flexibility on outcomes of human resource management revealed that companies which had a higher proportion of temporary agency workers and adjusted employment more frequently had higher turnover rates. The study also showed that the higher the proportion of non-regular workers, outsourcing and the easier it was to adjust working hours, the higher the absence rate. Meanwhile, companies that made employment adjustments more often showed higher defect rates and lower customer satisfaction. It was also found that in companies with a higher proportion of outsourcing and higher possibility of employment adjustments, workers were less interested in new technologies.

A Study on the Activities and Decision Factors between In-house vs. Outsourcing Reverse Logistics Processes (역물류(Reverse Logistics)의 아웃소싱을 위한 연구)

  • Kim, Young-Ah
    • Proceedings of the Korean DIstribution Association Conference
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    • 2006.08a
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    • pp.119-131
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    • 2006
  • Reverse logistics (RL) covering the flow of products/parts in a reverse direction from product returns to product disposal. Companies are faced with a decision on whether to manage RL in house or to outsource it to a RL third party service provider (3PSP). A survey was conducted in 2004 to study RL outsourcing practices. Through the survey, various RL functions outsourced in industry are identified, and the factors considered to decide between in-house vs. outsourcing RL management are studied along with their importance. In addition, this research presents the performance measures of a 3PSP and problems faced by companies while managing RL in-house and outsourcing.

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A Study on The Effect of Justice of Transaction on Customer Performance in manufacturing Outsourcing. ; The Mediation Effect of Partnership (제조 아웃소싱에서 거래공정성이 고객사의 경영성과에 미치는 영향에 관한 연구 ; 파트너십의 매개효과)

  • Park, Sang-Moon;Kim, Gi-Joong;Hyun, Byung-Hwan
    • Journal of the Korea Academia-Industrial cooperation Society
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    • v.20 no.6
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    • pp.228-238
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    • 2019
  • The purpose of this study is to investigate the relationship between transaction justice and customer performance. In this study, data were gathered from questionnaires from customers and suppliers of manufacturing outsourcing service, and reliability, validity, and confirmatory factor analysis (CFA) were conducted and the hypothesis was verified through the structural equation modeling (SEM) analysis. The results of this study are as follows: 1)Transaction justice has a significant positive effect on customer's business performance. Distribution and Interactional justice have a small effect on business performance, but Procedural justice has a significant positive effect. 2)Transaction justice has a positive effect on partnerships. 3)The partnership between the customer and the supplier has a positive effect on the customer's business performance. 4)Partnership has positive effect on customer's management performance through mediating justice. This study is based on the fact that justice acts as a independent variable in the transactional relationship between the customer and the supplier in the manufacturing outsourcing and this is the first case that empirically investigated the effect of the justice on the customer's management performance. In order to effectively cope with a rapidly changing business environment and effectively improve management performance, it is necessary to make efforts to improve justice, especially procedural justice, by utilizing outsourcing effectively in a global competition. In this respect, this study provides important implications for the both academically and practically.