http://www.umsl.edu/~lacitym/umsllogo.gif IS 6891

IS 6891 - Seminar in Management Information Systems:

Management of Global Sourcing of Business and IT Services

 

PMBA SPRING 2012 (March 3 – May 18)

 

003 Express Scripts Hall

 

 

Course Description:

 

Largely fostered by the globalization of organizations and spread of the Internet, processing standards, and common software packages, organizations now regularly source business and IT services globally. This course covers topics to help managers source business and IT services from the initiation of a sourcing decision and evaluation process through to service provider selection and transition to outsourcing.  The course also covers the client and provider capabilities and contractual and relational governance that are needed to ensure good outsourcing outcomes for both parties.  The course focuses on global sourcing of IT, Financial and Accounting, HR, procurement, real estate, legal, and other back office functions.  Students will also investigate insourcing options such as shared services and captive centers and other emerging sourcing topics such as cloud computing, crowd sourcing, and rural sourcing.

Course Instructor:

Dr. Mary C. Lacity
233 Computer Center Building
(314) 516-6127 (work)
(314) 516-6827 (fax)

Email: Mary.Lacity@umsl.edu
Homepage: http://www.umsl.edu/~lacitym

 

Course Instructor:

 

Dr. Mary Lacity is a Professor of Information Systems and an International Business Fellow at the University of Missouri-St. Louis.  She is also Co-Chair of the IAOP Midwest Chapter, Research Fellow at The Outsourcing Unit, London School of Economics, Industry Advisor for the Outsourcing Angels and Everest Group, Senior Editor of the Journal of Information Technology, Co-editor of the Palgrave Series: Work, Technology, and Globalization, and on the Editorial Boards for MIS Quarterly Executive, Journal of Strategic Information Systems, Strategic Outsourcing: An International Journal, and Journal of the Association for Information Systems (JAIS).  Her research focuses on global outsourcing of business and IT services. She has conducted case studies and surveys of hundreds of organizations on their outsourcing and management practices. She has given executive seminars world-wide and has served as an expert witness for the US Congress. She was the recipient of the 2008 Gateway to Innovation Award sponsored by the IT Coalition, Society for Information Management, and St. Louis RCGA and the 2000 World Outsourcing Achievement Award sponsored by PricewaterhouseCoopers and Michael Corbett and Associates. She has published 14 books, most recently Advanced Outsourcing Practice: Rethinking ITO, BPO, and Cloud Services, (Palgrave, 2012, co-author Leslie Willcocks), and China’s Emerging Outsourcing Capabilities (Palgrave, 2010; co-editors Leslie Willcocks and Yingquin Zheng). More than 50 of her publications have appeared in the Harvard Business Review, Sloan Management Review, MIS Quarterly, IEEE Computer, Communications of the ACM, and many other academic and practitioner outlets. She was Program Co-chair for ICIS 2010. Before earning her Ph.D. at the University of Houston, she worked as a consultant for Technology Partners International and as a systems analyst for Exxon Company, USA.

 

This course is cross-listed in the Outsourcing Professional Course Catalog (OPCC)

 

This course is worth 25 of the 150 points required to become a Certified Outsourcing Professional (COP).

 

The International Association of Outsourcing Professionals (IAOP) offers a number of certifications, including the COP-Certified Outsourcing Professional.  To become a Certified Outsourcing Professional (COP), an individual must be able to demonstrate both the experience and knowledge needed to design, implement, and manage outsourcing initiatives with a high probability of achieving the organization's intended outcomes. The experience and knowledge areas addressed by the certification cover the non-domain specific activities common to outsourcing as a management practice irrespective of the individual's role as a customer, provider, or advisor. In so doing, the certification creates an experience and knowledge set common to and shared by all professionals in the field. 

 

What is the process for becoming a COP? Applicants will be asked to successfully demonstrate that they possess the necessary knowledge and experience to be considered a COP. This knowledge and experience can be demonstrated through a combination of the following:

 

Comprehensive Work Experience in the field of outsourcing as demonstrated by employment on one or more projects across one or more firms.

 

Knowledge Assessment through passing the multiple choice COP Examination developed by the Standards Committee. The exam is taken online and consists of 200 multiple choice questions. You must answer 70% of the questions correctly to pass.

 

Education including successful completion of the COP Master Class and/or holding a relevant post-graduate degree.

 

http://www.iaop.org/content/23/193/1706/

 

 

Required Course Materials:

 

 

Outsourcing Professional Body of Knowledge ™ (OPBOK) - IAOP (english version)

Outsourcing Professional Body of Knowledge, by International Association of Outsourcing Professionals (2010), Van Haren Publishing

 

9780230231917

The Outsourcing Enterprise: From Cost Management to Collaborative Innovation (2011), by Leslie Willcocks, Sara Cullen, and Andrew Craig, Palgrave, UK

 

 

Additional assigned readings, videos, and pre-recorded lectures as posted on my gateway

 

 

Course Assessment Items:

 

Assessment Item

Percentage of Grade

Due Date

Exam 1  (Take Online)

20%

Monday, March 19 by 8:30am

Exam 2 (Take Online)

20%

Monday, April 2 by 8:30am

Group Presentation

35%

See Schedule

Exam 3 (Take Online)

20%

Friday, May 18 by 8:30am

Class Participation

5%

Attendance and active class participation

 

Students will take 3 exams, but may drop the lowest exam score.  If students are satisfied with their first two exams, they do not have to take the third exam. Because students may drop an exam, the final average is calculated using the following formula:

 

 (Best Exam Score *.20) + (Second Best Exam Score *.20) + (Group Oral Presentation Grade *.35) + (Class Participation * .05)

                                                                                                        .80

 

The letter grades use the following scale:

 

92.00 or above

A

90.00 to 91.99

A-

88.00 to 89.99

B+

82.00 to 87.99

B

80.00 to 81.99

B-

78.00 to 79.99

C+

72.00 to 77.99

C

70.00 to 71.99

C-

Below 70.00

F

 

 

 

 

Oral Group Presentation:

The class will be divided into six groups. Each group is responsible for presenting a 50 minute presentation to the class. Each group will be assigned a different ITO/BPO topic:

 

Group 1: BPO: Outsourcing Human Resources OR Financial & Accounting Services

Group 2: BPO: Group Choice (Procurement Outsourcing, Claims Administration; Policy Administration; Legal Services—anything except HR or FAO)

Group 3: Insourcing Options:  Shared Services or Captive Centers

Group 4: Emerging ITO/BPO Trend: Africa

Group 5: Emerging ITO/BPO Trend: Cloud Computing

Group 6: Emerging ITO/BPO Trend: CrowdSourcing

 

 

RESEARCH BASE:

 

Secondary Resources. Each group should research at least 20 external references such as journal articles, newspapers, short videos, or relevant websites.  Some excellent sources that cover the ITO and BPO markets are:

 

 

Outsourcing Research & Professional Sites:

High Performance BPO website:            http://www.accenture.com/Microsites/highperfbpo/Pages/home.aspx

IAOP homepage:                                   http://www.iaop.org/

IAOP Midwest Chapter:                                  http://www.outsourcingprofessional.org/content/23/162/1947/

Everest Research Institute                      http://www.everestresearchinstitute.com/

Technology Partners International:          http://www.tpi.net/

LSE Outsourcing Unit:                           www.outsourcingunit.org

 

 

Journals devoted to outsourcing:

Academic Journal:                                 Strategic Outsourcing: An International Journal

Globalization Today:                              http://www.globalizationtoday.com/

HRO Today Journal:                              http://www.hrotoday.com/

FAO Today Journal:                              http://www.faotoday.com/

Outsource Magazine                              http://www.outsourcemagazine.co.uk/

 

 

At least 10 of these references must be from refereed journals or academic journals for practitioners, such as Sloan Management Review, Harvard Business Review, Academy of Management Perspectives. Refereed journals assure some level of validation. The best source to find refereed journal articles is ABI-INFORM, available online to UMSL students.  To find refereed articles, simply tick the box for “Scholarly journals, including peer-reviewed ” while in ABI inform. I will show you how to conduct a search if you need help.

 

Many students liven up their presentations by including short video clips about their topic (such as a youtube video). 

 

Primary Resources. Students should conduct original interviews/case studies for their group projects. Case studies comprise original interviews and internal and external company documents, but refer to guidelines for your specific topic. Most students chose one or two organizations from among the group members' current or prior workplaces.  We will learn about the “six degrees of separation”—with a little help and determination, a friend of the family or a friend of a friend may help students find relevant people to interview.

 

Another potential source of primary data is an original survey.  For example, a past group surveyed 35 lawyers to see if they would outsource any legal work.  

PRESENTATION TIMING:

Each group should spend their time in approximately the following way: (Again, some topics lend themselves to a slightly different format, so be sure to look at my links to your topic.)

Overview of the topic. Provide general statistics about your topic; why is your topic important to general managers? How much money do companies spend on your topic? What are the promised benefits of this topic if properly managed?  What are the potential pitfalls if mis-managed?  What will we learn from your presentation? (~10 minutes)

If you cite surveys, YOU MUST TELL US ABOUT THE SAMPLE in terms of size of organizations that participated (such as Fortune 500), geographic dispersion (such as U.S. or global), sample size, and date of data collection.  You'll be surprised how surveys report very different figures because of sample diversity.

Case-based/Interview-based Data: Explain your topic using real organizations.  Why did you select these organizations?  How are they representative of the lessons you are trying to demonstrate? (~25 minutes)

Generalizations: Do a cross-case comparison of similarities and differences among the cases. Extract a set of lessons or best practices for the general manager; tie these lessons back to the case studies.  The audience should be able to be very involved in this part of the presentation. (~5 minutes)

Each group should only plan 40 minutes of content to allow 10 minutes of audience interaction during the presentation. Think of yourselves not as formal speakers, but as teachers. You should incorporate the audience during the entire presentation.  In the past, students have done very creative things for audience participation including a short Jeopardy game, a short survey, etc.

 

PRESENTATION MATERIALS:

 

Each group will develop power point slides.

 

On the day of your presentation, please provide a hardcopy of the slides for your instructor. Please print only 2 slides per page and staple your slides for your instructor.

 

Please load your final power point slides in your Group X Pages under FILE EXCHANGE.  Your classmates may wish to print your group’s power point slides prior to class, so please have your slides finalized the week before your presentation.  Please name the final version of your power point slides exactly as indicated below:

 

 

 

Group

Oral Presentation File Name

File names are case sensitive

Group 1: BPO: Outsourcing Human Resources OR Financial & Accounting Services

G1pmbaS12.pptx

Group 2: BPO: Group Choice (Procurement Outsourcing, Claims Administration; Policy Administration; Legal Services—anything except HR or FAO)

G2pmbaS12.pptx

Group 3: Insourcing Options:  Shared Services or Captive Centers

G3pmbaS12.pptx

Group 4: Emerging ITO/BPO Trend: Niche Sourcing to unlikely places

G4pmbaS12.pptx

Group 5: Emerging ITO/BPO Trend: Cloud Computing

G5pmbaS12.pptx

Group 6: Emerging ITO/BPO Trend: Crowdsourcing

G6pmbaS12.pptx

 

CITATIONS:

Make sure that every slide appropriately credits sources, be it an interview, printed material, or web site. Printed material should be referenced with Author, Year, Title, Journal (if appropriate), Volume, Number, and page numbers. For example:

Book:
Lacity, M., and Willcocks, L. (2001), Global Information Technology Outsourcing: Search For Business Advantage, John Wiley & Sons, Chichester.

Journal Article:

Rottman, J., and Lacity, M. (2008), A US Client’s Learning from Outsourcing IT Work Offshore,” Information Systems Frontiers, Vol. 10, No. 2, pp. 259-275.

If your slides get too busy, then simply use end notes, such as embedding (1) on actual slide and attaching a list with numbers:

(1) Lacity, M., and Willcocks, L. (2001), Global Information Technology Outsourcing: Search For Business Advantage, John Wiley & Sons, Chichester.

(2) Rottman, J., and Lacity, M. (2008), A US Client’s Learning from Outsourcing IT Work Offshore,” Information Systems Frontiers, Vol. 10, No. 2, pp. 259-275.

(3) Ibid, p. 184.

Websites:

Please indicate full URL for web site references, and date viewed. For example:

www.umsl.edu/~lacitym/ms480sum.htm, viewed January 1, 2012.

Interviews:

Please indicate name (if not anonymous), title of interviewee, type of interview (in person, phone, videoconference), name of students at the interview, and date of interview. For example:

John Smith, CIO of BigCompany, interviewed in person by Jane Doe and Fred Davis, January 6, 2009.

Ian Jones, Director of Applications, BigCompany, interviewed by phone by Jane Doe and Fred Davis, February 8, 2009.

DO NOT PLAGERIZE!!!!

You may not copy directly from sources unless you indent the text and put it in quotes.  This would normally be reserved for a few sentences of specific quotations. 

You must RE-WORD sources!  You are using external references as INPUT to your originally created OUTPUT.

I am very happy to work with groups on their specific topic. I strongly suggest that I meet with your groups several times.  At a MINIMUM, I want to review your power point slides at least a week before your presentation. Please feel free to email me to make an appointment in person, or we can do it over the phone as well.

Oral Group Presentation Grades:

Oral presentations are graded as a group grade rather than as individual grades.  Oral group presentations will be graded using the following form: oral group grade form pmba

 

Individuals in a group never contribute the exact equal amounts of time, content, and value. This often leads to some people feeling they worked more than others, and some people feeling left out. Usually a leader emerges, one who will hopefully help find the gifts of each individual. Unfortunately, I cannot effectively intervene in these matters, and rely on you as adults to ensure that all members of your group meaningfully contribute to the data gathering, interviewing, analysis, slide design, and presenting the final project.

All group members will receive the same grade for the oral presentation, provided that all members agree that each individual made a significant contribution. If a group member has not meaningfully or fully participated, I will assume that group member was legitimately distracted by other life issues such as illness or heavy work travel. I do expect that members who do not fully participate show their integrity by willingly reducing their percentage of contribution. It is no shame to not fully participate because of legitimate reasons.  It is a great shame to expect other group members to falsely report contribution percentages.

In order to provide some accountability, albeit imperfect, I will ask that each group fill in the following form and each group member must sign it. This form is due on the day of presentation.

Please print, fill in, and have every member sign a copy of: group contribution form .

Exams:

 

The purpose of the exams is to make sure that you read, understood, and can apply material contained in the readings and lectures.  The exams are administered online. EXAMS ARE POSTED IN THE ASSIGNMENT FEATURE IN MYGATEWAY.  Complete all the required readings prior to opening the exam.

 

·         Exam 1 covers the following modules: Overview of Outsourcing, What Providers Would Tell you if they Could, 20 years of Research, Motivations to Outsource

 

·         Exam 2 covers the following modules: Transaction Attributes, Decision Process, Offshore Outsourcing and Rural Outsourcing.

 

·         Exam 3 covers the following modules: Client Firm Capabilities, Supplier Firm Capabilities, Contractual Governance, and Relational Governance

 

Please note, ONCE YOU OPEN THE EXAM YOU ONLY HAVE 4 HOURS TO COMPLETE IT!  (Please note Exam III is open for three hours).

 

Do not open the test until after you have read the required materials and you have studied.  You may use your notes, readings, power point slides to answer questions.  You may not speak with other students about the exam.

 

There are 40 multiple choice questions on each exam plus one essay.

 

 

Grading Exams:

 

Exams are due at the dates and times as indicated above. 10 points are deducted for each day late.  Exams are considered 1 day late at 8:31am.  

 

There is no “double grading” (i.e. no asking to redo an exam if a student is not satisfied with the grade earned).  There are no extra credit assignments. 

 

 

Grading Philosophy:

 

My grading philosophy is that professors do not “give” grades.  Students “earn” grades.  I take grading very seriously.  I thoughtfully grade each assessment item on the assessment sheets.  A sub-culture has emerged among some (certainly not all) graduate students that graduate students are “customers” and that every thing they do should be given an A.  Such a view dilutes the value of your education, and as a professor I cannot possibly hold this view.  I am morally obligated to clearly define expectations (which I do on a very detailed syllabus and detailed assignments), to help you as much as I can before your assignments are due, and to grade the actual performance using the assessment sheets.  

 

I must treat and assess each student the same—fairly and consistently.  I cannot make exceptions for some students.  All that said, I have great empathy for college students, having been one myself for nine years!   I care about your learning. No one would be happier than I to see all students earn high grades!

 

Course Schedule:

 

 

DATE:

Time

Activity/Module

Learning Objectives

Readings

CLASS

Saturday,

 March 3

8:30am to 10:30pm

Overview of Global Outsourcing

 

 

Understand definition of global sourcing;

Understand challenges facing back office managers;

Understand the major transformation approaches;

Understand size of global outsourcing markets;

Understand outsourcing success rates;

Understand why outsourcing is so challenging to client organizations;

Learn what clients need to master to achieve global sourcing objectives

 

10:45am to 12:30am

What Providers Would Tell Customers if They Could

Understand that most of what BPO suppliers say is supported by research and will ultimately benefit the customer.

OPTIONAL SUPPLEMENTAL READINGS:

Lacity, M., and Willcocks, L. (2011), “PART 1: What Suppliers Say About Clients: Establishing the Outsourcing Arrangement,” Cutter Consortium Sourcing & Vendor Relationships Executive Report,  Vol. 12, 2.

Lacity, M., and Willcocks, L. (2011), “PART II: What Suppliers Say About Clients: Managing the Outsourcing Arrangement,”  Cutter Consortium Sourcing & Vendor Relationships Executive Report, Vol. 12, 3.

On Your Own

March 3

to

March 18

 

20 Years of Outsourcing Research Summarized

Understand the determinants of outsourcing decisions;

 

Understand the determinants of outsourcing outcomes

REQUIRED: Lacity, M., and Willcocks, L. (2012), Chapter 1, “Robust Practices from Two Decades of ITO and BPO Research,” from Advanced Outsourcing Practice: Rethinking ITO, BPO, and Cloud Services, Palgrave, London

 

SUGGESTED: Watch webinar

 

Motivations to Outsource: Moving to the Strategic Agenda

Understand most common motives driving ITO and BPO decisions;

 

Understand five reasons why CEOs should pay attention to ITO and BPO

REQUIRED: Outsourcing Professional Body of Knowledge, IAOP, Van Haren Publishing, CHAPTER  1

REQUIRED: The Outsourcing Enterprise: From Cost Management to Collaborative Innovation (2011),  CHAPTER 1

SUGGESTED: Watch webinar

 

EXAM 1 DUE:

March 19,

8:30 am

On Your Own:

March 19

to

March 22

Rural Sourcing

REQUIRED: Lacity, M., Carmel, E. and Rottman, J. (2011), “Rural Outsourcing: Delivering ITO and BPO Services from Remote Domestic Locations,” IEEE Computer, Vol. 44, pp. 55-62.

Transaction Attributes

Understand three main transaction attributes—Asset Specificity, Frequency, and Uncertainty—and how these relate to outsourcing choices.

 

Understand two behavioral assumptions of TCE—bounded rationality and vendor opportunism.

 

Understand main benefits and limitations of three governance choices: hierarchy, hybrid, and market.

 

 

REQUIRED: Practitioner Friendly Version of Transaction Cost Economics:  “Oliver’s Twist” in Globalization Today  (2010),

 

REQUIRED: Williamson, O. (1991), “Comparative Economic Organization: The Analysis of Discrete Structural Alternatives,” Administrative Science Quarterly, Vol. 36, 2, pp. 269-296.

 

CLASS

Friday,

March 23

8:30am-10:15am

Guest Speaker: Real Estate Outsourcing

Rich Etzkorn, CPM, RPA  Executive Managing Director, Principal Corporate Services, Cassidy Turley

10:30am to 11:20 am

Transaction Cost Economics and other Theories of Outsourcing as they relate to practice: Part I

Understand how well TCE explains ITO;

 

 

11:30am: to 12:30pm

Guest Speaker:  Rural Outsourcing

Shane Mayes, Founder and CEO of Onshore Technology Services

CLASS

Saturday,

March 24

8:30am

to 9:30pm

Transaction Cost Economics and other Theories of Outsourcing as they relate to practice:

Part II

Understand other outsourcing theories and how these relate to ITO and BPO

Optional:  The Original Work: DiMaggio, P., and Powell, W. (1991), "The Iron Cage Revisited: Institutional Isomorphism and Collective Rationality in Organizational Fields," in , (Powell & DiMaggio eds), The University of Chicago Press, pp. 63-82.

 

10:00 am

To 11:00 pm

Sourcing Destinations: Offshore Outsourcing

 

 

Ability to identify major countries competing in ITO and BPO;

 

Understand how offshore outsourcing is different than onshore outsourcing in terms of risks and additional costs;

 

Best practices associated with engaging offshore suppliers.

REQUIRED: Rottman, J., and Lacity, M. (2006), “Proven Practices for Effectively Offshoring IT Work,” Sloan Management Review, Vol. 47, 3, pp. 56-63

 

REQUIRED: Rottman, J., and Lacity, M. (2008), “A US Client’s Learning from Outsourcing IT Work Offshore,” Information Systems Frontiers, Special Issue on Outsourcing of IT Services, Vol. 10, 2, pp. 259-275.

 

 

11:00am to 12:30pm

Guest Speaker:  Outsourcing in Healthcare

Dan Schulte - Executive Vice President, Revenue Cycle Solutions

The Outsource Group

ON YOUR OWN:

March 25

to

April 1

Decision Process

Understand nine building blocks of the outsourcing life cycle.

 

 

Ability to identify top global ITO and BPO suppliers;

 

Appreciate how quickly country and supplier advantages change.

REQUIRED: Outsourcing Professional Body of Knowledge, IAOP, Van Haren Publishing, CHAPTERS 5 and 6.

 

REQUIRED: The Outsourcing Enterprise: From Cost Management to Collaborative Innovation (2011),  CHAPTER 1

 

EXAM 2 DUE:

Monday, April 2,

8:30am

CLASS:

Friday, April 20

8:30am to

9:30pm

Group 1 Presentation

BPO: Outsourcing Human Resources OR Financial & Accounting Services

9:45am to 10:45pm

Group 2 Presentation

BPO: Group Choice (Procurement Outsourcing, Claims Administration; Policy Administration; Legal Services—anything except HR or FAO)

11:00am to 12:00pm

Group 4 Presentation

Emerging ITO/BPO Trend: Niche Sourcing to unlikely places

CLASS:

Saturday,

April 21

8:30am to

 9:30pm

Group 3 Presentation

Insourcing Options:  Shared Services or Captive Centers

9:45am to 10:45pm

Group 5 Presentation

Emerging ITO Trend: Cloud Computing

11:00am to 12:00pm

Group 6 Presentation

Emerging ITO/BPO Trend: Crowdsourcing

ON YOUR OWN:

April 24

to May 17

Client Firm Capabilities

Understand nine core client capabilities

REQUIRED: The Outsourcing Enterprise: From Cost Management to Collaborative Innovation (2011),  CHAPTER 4

SUGGESTED: Watch webinar

Supplier Firm Capabilities

Understand twelve core supplier capabilities

 

REQUIRED: The Outsourcing Enterprise: From Cost Management to Collaborative Innovation (2011),  CHAPTER 3

 

SUGGESTED: Watch webinar

Contractual Governance

Understand how to develop the financial case and pricing;

 

Understand the governance charter;

 

Understand contract management

 

 

REQUIRED: Outsourcing Professional Body of Knowledge, IAOP, Van Haren Publishing, CHAPTERS 7 and 8

REQUIRED: The Outsourcing Enterprise: From Cost Management to Collaborative Innovation (2011),  CHAPTERS 6, 7, and 8

 

SUGGESTED: Watch webinar

Relational Governance

Understand what is meant by relational governance;

 

Understand Social Capital Theory and how it relates to ITO

 

REQUIRED: Lacity, M. and Rottman, J. (2008), Offshore Outsourcing of IT Work, Palgrave, United Kingdom, Chapter 4.

 

SUGGESTED: Watch webinar

EXAM 3 DUE:

May 18,

8:30 am