Managing Change in IT Outsourcing

ALBERT PLUGGE has held a part-time position at Delft University of Technology, the Netherlands, where he studies the fieldof outsourcing, since 2005. He received his PhD in IT outsourcing in 2011 from the same university. Currently, he is a Senior Research Fellow there, in the Faculty of Technology, Policy and Management (Information and Communication Technology section).

'Many books have been published on IT outsourcing; however, the vast majority of them assume a client perspective, shedding little light on how IT providers develop their strategies and compete in this fast growing industry. Based on original research and his extensive experience in the outsourcing industry, Albert Plugge offers in this book a detailed account of the provider side in IT outsourcing relationships. This book is a must read for managers and executives from the client, provider and intermediary organizations attempting to strike a 'win-win' outcome.' Prof. Dr. Ilan Oshri, Loughborough School of Business and Economics 'Based on actual case studies and extensive research, Albert Plugge has produced a valuable resource for continuously adapting outsourcing services to changing internal and external conditions in the client organization. One of the enduring challenges of outsourcing relationships for the past twenty-five years is how to provide sustained business value as the market conditions change and demand fluctuates for the client organization. Albert Plugge's dynamic fit model is a creative design and adaptation process that directly addresses that challenge and takes us way beyond traditional outsourcing management approaches. This book is a comprehensive and valuable outsourcing reference for both service providers and client companies concerned with improving outsourcing services over time. It is destined to become a 'must-read' for all executives and IT service delivery managers in the outsourcing business.' Dr. Wendell O. Jones, Outsourcing pioneer and Thought Leader 'Albert Plugge is an aspiring academic in the field of IT outsourcing. His book Managing Change in IT Outsourcing intertwines his know-how as sourcing professional at KPMG and his experience as a researcher at the Delft University in the Netherlands. In the face of globalization, changing industry economics, and intensified competitive pressures, appropriate outsourcing of IT capabilities may help to drive down costs, to improve the IT infrastructure, and to focus on core competencies. However, formulating and running an effective IT outsourcing strategy is challenging and outsourcing agreements fail to deliver the desired outcomes often. Against this background, Dr. Albert Plugge conducted studies with onshore, offshore, and global IT providers and provides the reader with in-depth insights of outsourcing field cases. Providers and client organizations will not only learn about current challenges in globally distributed IT service provisioning, but also how to improve the performance of their outsourcing activities. Everybody involved in IT outsourcing will appreciate this book. It is an inspired piece of work and of high interest for academics and practitioners.' Prof. Dr. Armin Heinzl, University of Mannheim 'In this book Albert Plugge has explored one of the most thorny and least understood sides of the outsourcing relationship: the viewpoint of the vendor. We all know that the relationship between the client and the vendor is a critical factor in the success of any outsourcing arrangement, but how to manage this relationship is not well understood. Dr. Plugge has focused on the vendor side of the equation noting that for relationships to be successful, it is imperative that both sides understand and acknowledge what each other wants to obtain from the arrangement. In this research, he not only explores this issue via a number of case studies, but a large scale survey was undertaken. The combination of such qualitative and quantitative research components is unusual as it requires considerable effort, skill and time on the part of the researcher. Albert Plugge needs to be commended for the comprehensive research he has done, and for its contribution to understanding outsourcing relationships. The work is thorough, well founded and very actionable. It is a model of what we in academia should strive for.' Prof. Dr. Rudy Hirschheim, Ourso Family Distinguished Professor at Louisiana State University

• List of Tables List of Figures Acknowledgements Introduction Managing Change Preliminary Research Case Study: Domestic Provider Case Study: Offshore Provider Case Study: European Provider Case Study: Global Provider Cross-case Analysis Quantitative Results Conclusion Annexes References Appendix A: Research Methodology Appendix B: Preliminary Research: Overview of Interviewees Appendix C: Preliminary Research: Interview Questions Appendix D: Main Research: Overview of Interviewees Appendix E: Main Research: Interview Questions Appendix F: Main Research: Interview Extracts Appendix G: Survey Questions Summary Index