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The purpose of this paper is to review recent trends and issues in global IT sourcing and to introduce papers in the special issue: “Social, managerial and knowledge aspects in global IT sourcing”.

The paper examines trends by regions including Brazil, Russia, India and China and also trends in Captive Centres and their strategies.

There will be a continuing rise in outsourcing revenues for global outsourcing, with BPO overtaking ITO within five years. Multi‐sourcing will continue to be the dominant trend. India will continue to dominate but its role will change. China heralds promise but will still struggle to achieve scale in Western European and North American markets. Emerging country competition will intensify. Software as a service will be a “slow burner” but will gain momentum in the second half of the next decade. Near‐shoring will be a strong trend. Outsourcing, by offering a potential alternative, will help discipline in‐house capabilities and service. Knowledge process outsourcing will increase as the BRIC and emerging countries move up the value chain. Captive activity – both buying and selling – will increase (see below). Outsourcing successes and disappointments will continue as both clients and suppliers struggle to deal with a highly dynamic set of possibilities

The paper is of value to both academics and practitioners working in the field of IT sourcing. The study of captive centres is in its early stages and the paper introduces further work in this area.

The study aims to provide a critical review of the extent to which digital technologies are likely to replace human labour, the exponential rise in the amount of work to be done and how far distinctively human skills are future-proofed and therefore likely to be in short supply. It reviews the evidence for a permanent switch to home and remote working enabled by emerging technologies. It assesses the business, digital and labour strategies of work organisations and the promise and challenges from a dominant trend towards a digitally enabled flexible labour model.

A critical review of 1020 plus case studies and the extant literature was carried out.

The relationship between emerging technologies and work is widely misunderstood, and there are major qualifiers to the idea of an overwhelming tsunami of technology drastically reducing headcounts globally. Distinctive human skills remain valuable, the amount of work to be done is increasing exponentially and automation is becoming more a coping than a labour replacement mechanism. Moves to a hybrid digitalised flexible labour model are promising but not if short-term, and if the challenges they represent are not managed well.

The main limitation is that we are making projections into the future, though we are drawing on a lot of different sources and evidence and past data projected into the future.

The problem is not labour displacement but large skills shortages that will slow down the speed of technology adoption. Skills development is vital, as is the taking of long-term perspectives towards the management of hybrid, flexible working based on human-machine interactions.

Organisations need to revitalise their training and development and labour management models. Governments and intermediary institutions need to manage transition states if the skills required to gain economic growth are to be available, and to ensure that large labour pools do not get bypassed from not having requisite skills.

The study offers a more subtle and complex perspective on the emerging evidence about the future of technology and work.

This paper aims to explore the expertise level required in various kinds of business knowledge such as regulatory, domain, strategic, operation process and, business process to execute globally distributed software projects for development, re-engineering and maintenance projects in the Indian outsourcing software industry.

This study adopted a questionnaire survey method to collect the expert responses for a knowledge management framework which is suggested in the literature for software development work. The questionnaire survey findings were verified by expert interviews.

The research shows that there is a lot of similarity between re-engineering and maintenance projects for different kinds of business knowledge expertise requirements for execution. The development projects require higher expertise in all the business knowledge for execution.

The research work studies the business knowledge required for the execution of development, re-engineering and maintenance projects in Indian outsourcing software projects. However, the project’s characteristics can vary drastically for a single kind of project. So the study cannot be generalized and instead should be used as a tool for learning.

The research findings can be used by software project managers to get insight into project planning, which can help the division of work between the onsite, offshore team and individual work allocation.

The research is novel as there are very few previous attempts to find the business expertise needed to execute various kinds of software projects in the Indian outsourcing industry.

The major problems experienced in implementing IT systems in the public sector are reviewed. Detailed UK research, carried out in the Department of Social Security and the National Health Service, is then considered. Many projects sub‐optimise due to neglect of the human aspects of computerisation, broadly conceived. It is concluded that establishing 16 success criteria still need to be imported into many IT projects if effective systems are to result.

This paper aims to answer the question: how do clients and BPO service providers work together to foster dynamic innovation? Dynamic innovation is a process by which clients incent providers to deliver many innovations each year that improve the client's performance in terms of operational efficiency, process effectiveness and/or strategic impact.

The paper is based on research conducted in 2011 and 2012 and includes 202 survey responses and 48 in-depth interviews in 24 client organizations.

The most effective innovation incentives are mandatory productivity targets, innovation days, and gain-sharing at the project level. Threat of competition and special governance arrangements for innovation also positively influence innovation. The least successful incentives for innovations were found to be innovation funds, gainsharing at the relationship level, what has been called “pain-sharing”, and benchmarking.

The 24 BPO relationships do not represent a random sample, but rather a convenience sample. The authors aimed to understand emerging best practices from high-performing BPO relationships, thus the paired interview samples are purposefully biased towards higher-performing relationships.

Delivering innovations requires a process the authors call AIFI – acculturating, inspiring, funding, and injecting. The research finds that leadership pairs are key drivers of the dynamic innovation process. Leadership pairs jumpstart the dynamic innovation process by starting with innovation incentives. Even so, just having one right leader makes a positive difference. The positive difference is stronger if that leader is on the client side rather than the provider side. With no right leaders, the practices that the authors describe are less efficacious but still have positive impacts on the levels of innovation experienced.

In the ITO and BPO literatures, researchers have under-examined the more strategic drivers of outsourcing, including innovation. This research examines the process and practices that deliver dynamic innovation in client organizations.

This paper aims to distill research findings that will influence CEO and top team behaviour.

The findings are based on case study research into 650 plus organisations and their outsourcing arrangements in Europe, Asia Pacific and USA.

CEOs have five reasons for ensuring IT‐based services outsourcing is included in their strategy discussions. IT outsourcing impacts upon a firm's market value. The sheer size of outsourcing expenditure merits senior management attention. Getting outsourcing wrong can seriously damage corporate health. At the same time, the evidence shows examples of outsourcing playing a strategic role for many businesses, and only the CEO has the real bargaining power to make outsourcing deliver this strategic dividend.

The research was carried out by the LSE's Outsourcing Unit and uses in‐depth longitudinal case studies to identify outsourcing practices that work, in terms of achieving superior business results.

The paper spells out the reasons why CEO and top teams should be engaged in their outsourcing decision making and management.

The paper establishes well researched grounds for why CEOs and top teams need to act differently if more effective outsourcing is to be achieved.

How have managers handled the industrial relations ramifications of information technology? There is a diversity of approaches within an overall framework of employee acceptance of the need for technological change. However, the introduction of new technology is rarely handled strategically in the industrial relations area, and there is much to be learnt from approaches adopted by a small minority of mostly foreign‐owned organisations. The authors conclude by asking whether or not patterns will change in the 1990s.

To identify key lessons, trends and enduring challenges with global outsourcing of back office services.

The authors extract lessons, project trends, and discuss enduring challenges from a 20 year research program conducted by these authors and their extended network of co‐authors and colleagues.

The authors identify seven important lessons for successfully exploiting the maturing Information Technology Outsourcing (ITO) and Business Process Outsourcing (BPO) markets. The lessons require back office executives to build significant internal capabilities and processes to manage global outsourcing. The authors predict 13 trends about the size and growth of ITO and BPO markets, about suppliers located around the world, and about particular sourcing models including application service provision, insourcing, nearshoring, rural sourcing, knowledge process outsourcing, freelance outsourcing, and captive centers. The authors identify five persistent, prickly issues on global outsourcing pertaining to back office alignment, client and supplier incentives, knowledge transfer, knowledge retention, and sustainability of outsourcing relationships.

The authors present some experimental innovations to address these issues.

The purpose of this paper is to find how mature the Polish commercial production companies are in their information technology (IT) sourcing practices, what they do, the practices that are successful, the challenges experienced and the outcomes.The paper presents and critically evaluates the results of a study of IT outsourcing management processes in selected industrial enterprises operating in Poland. Dynamic business contexts, globalisation and advances in IT make the development of IT sourcing models challenging in both theory and practice. This paper examines the principles and practice of sourcing IT and business processes in Poland, a country much under-represented in the literature. Little research has been conducted on the strategic rationale behind IT sourcing decisions, the resulting challenges and the potential or actual consequences of such decisions. This paper addresses these gaps in the understanding of IT sourcing processes by way of examining the types of sourcing models and solutions among manufacturing companies operating in Poland, and by identifying the most problematic and critical factors in effective IT sourcing collaborations. The outcomes are assessed against findings from the broader empirical outsourcing literature, and lessons are drawn for Polish client firms and those in similar economies.

A survey methodology of a limited number of organisations in Poland was used. The study was designed to address the process of managing IT sourcing relations in production companies operating in Poland. The main objective of the study was to formulate working hypotheses to be used in further research on the sourcing models used in the IT sphere. Additionally, the study was designed to provide information on: the potential respondent reactions to the research problem, the understanding of the notions and terms used in the survey questionnaire and the evaluation of the research instrument itself.

Organisations (and their employees) are generally well aware of their IT needs, and that they select quite well providers that suit their particular requirements. In their selection processes, organisations carefully consider not only the providers’ experience and the range of services on offer but also their flexibility in response to the client’s demands, the location and the trust formed in the course of previous cooperation. Communication between the parties typically takes the form of telephone conversations and e-mails. The majority of respondents reported more than one type of problems faced in the course of outsourcing. Problems concentrated in the areas of communication (52 per cent) and organisation (48 per cent), followed by difficulties in enforcing the terms of the contract.

It is a selective sample, focuses only on production companies and does not look at the offshore outsourcing market that has grown up in Poland, but rather what domestic polish organisations do in their sourcing practices.

The organisations still struggle with the organisation and management of relations with their external service providers while getting reasonable results. They have much to learn from the published literature on managing the outsourcing life cycle.

There is a need for better inter-organisational cooperation.

Poland is very underrepresented in the outsourcing literature – there are no examples of surveys like this in the English literature.