Industry insight
Contribution and directions for future research
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Week 5 framework
8. Contribution and directions for future research
In this era of hyper-competition ( D’Aveni, 1994 ), organizations are increasingly compelled to leverage the burgeoning market for external services to gain strategic advantage ( Willcocks, 2011 ). Indeed, Willcocks’ (2010) contention that “[…] outsourcing is part of any future strategy” is confirmed by increasing involvement of firm’s top management in outsourcing related plans and decisions ( Quinn, 1999 ). Again, recent studies exhorts us to move beyond the rhetoric of whether to outsource or not and advises us to investigate the “how” of outsourcing and the conditions under which it becomes effective ( Willcocks, 2010 ; Yang et al., 2012 ). Through this research, I discuss the practice of managing outsourcing arrangements. Arguing that outsourcing is not a one-time act but an ongoing organizational activity impacting its competitiveness, my study sees outsourcing as a crucial capability in itself worthy of deliberations and 245 Framework for performing outsourcing capability research. Willcocks (2011) recognized that firms which invest in consciously building capability to manage outsourcing arrangements over time are able to deal with increasingly complex and fruitful projects. All this begets the question as to what exactly constitutes outsourcing capability. My research responds to the call by beginning to uncover the building blocks of the outsourcing capability. Outsourcing as a field is professionalizing in the new millennium ( Gandhi et al., 2012 ). Yet, it is still in early stages of professionalization, with little agreement on standards of competence and what it would take to manage it successfully ( Willcocks, 2011 ). My study begins plugging this gap by developing an outsourcing matrix which proposes that managing outsourcing arrangements is not a one-size-fits-all formula, but a differentiated capability. Through recent examples of outsourcing successes and failures, I discuss how a context dependent selective emphasis on varied aspects of the outsourcing capability is required to optimally manage outsourcing arrangements. Through the outsourcing matrix, I speak to outsourcing practitioners who need inputs relevant to their contexts. For researchers, this matrix could serve as a locus for future studies on outsourcing capability. 8.1 Directions for future research Based on extensive literature review and drawing upon recent outsourcing successes and failures, the FARM matrix emphasizes differentiated aspects of outsourcing capability in dealing optimally with varied outsourcing arrangements. Large sample studies can confirm whether, and by how much, outsourcing successes depend on the factors that the FARM matrix delves upon. Given that my insights are drawn largely from outsourcing arrangements in the Indian context, cross-country surveys of managers in charge of outsourcing arrangements could shed light on contingencies if any across regions. The FARM matrix has pointed towards specific aspects of the outsourcing capability. Future research in form of case studies can uncover their micro-foundations by detailing out their origin and development within organizations. With outsourcing-related decisions and planning rising to the highest levels in an organization, it would be interesting to understand how chief experience officers translate their felt need for outsourcing capabilities into organization-wide competency. Extended case studies of large organizations which outsource various processes, with varied results, could be instructive in this regard. The practice of the aspects of outsourcing capability highlighted in the FARM matrix needs elaboration and detailing. For example, research on “Monitoring” can deliberate on tools, systems and cultural aspects which can optimize organizational effort. Similar research on other aspects can help hasten the ongoing professionalization of the outsourcing function. Download 329.89 Kb. Do'stlaringiz bilan baham: |
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