Outsourcing in Modern Organisations

Running head: OUTSOURCING IN MODERN ORGANISATIONS
Outsourcing in Modern Organisations
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1OUTSOURCING IN MODERN ORGANISATIONS
Article 1:
Gurung, A., & Prater, E. (2017). A research framework for the impact of cultural
differences on IT outsourcing. In Global sourcing of services: strategies, issues
and challenges (pp. 49-82).
This article by Gurung and Prater (2017) have addressed the oversight of the impacts
of culture differences on the IT outsourcing as well as the virtual teams. The authors have
also highlighted the extent of success achieved by the outsourcing in the modern day business
as well as the disadvantages it has laid on the contemporary organisations. The framework
provided by these authors in this article also include the concept of psychic distance in order
to gain a better understanding of the phenomenon of virtual teams and the success of
outsourcing. It is to note that this framework has contributed to a significant extent to the
recognition of virtual software teams that are operating in dynamic business environment of
the national boundaries, the individual preferences and the organisational practices that are
affected by the elements of trust, experience and cultural affinity.
Article 2:
Khan, S. U., & Khan, A. W. (2017). Critical challenges in managing offshore software
development outsourcing contract from vendors' perspectives. IET
Software, 11(1), 1-11.
Khan and Khan (2017) in this article have highlighted the critical challenges that the
vendors face in organisations in the process of execution and management of the OSDO
(Offshore software development outsourcing) contracts. With the same, they have also
analysed all the identified challenged on the basis of the variables like organisational size,
time and year. Lack of project management, poor monitoring system, failure in managing the
end-user expectations, unforeseen contingencies, lacking in the outsourcing relationship

2OUTSOURCING IN MODERN ORGANISATIONS
management, non-competitive product and service pricing, regulatory and IPR issues and
lack of negotiation strategies are some of the significant challenges faced by the vendors in
the different IT firms in contemporary world during managing the offshore software
development outsourcing contract. Moreover, Dinu (2015) in this context have also added to
this list claiming that inadequate specification and plan of outsourcing along with high
turnover of the vendor employees in the IT firms are also negative impacts of the OSDO
contracts.
Article 3:
Solli-Sæther, H., & Gottschalk, P. (2015). Stages-of-growth in outsourcing, offshoring
and backsourcing: back to the future?. Journal of Computer Information
Systems, 55(2), 88-94.
In this paper, Solli-Saether and Gottschalk (2015) have identified the different steps in
the IT companies. They include the in-house staff functions, the offshored function, the in-
house service function, the outsourced function as well as the back-sourced function.
However, it is to note that the author of this article have claimed that the growth in
outsourcing, off-sourcing and back-sourcing do influence the growth and development of the
entire organisation in positive way. They help in improving the competitive advantage of a
company and there are several firms that have decided for outsourcing some or the other IT
functions like the production, software development and maintenance for the highly skilled
external vendors (Solli-Saether & Gotttschalk, 2015). Furthermore, it is also to mention that
the different stages of growth model indicates a path for the evolution of the in-house
functions of the company by means of outsourcing and off sourcing functions.
Article 4: