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An Analysis of the Effectiveness of Offshore Systems Development

DeHondt, Gerald R., II
http://rave.ohiolink.edu/etdc/view?acc_num=kent1259462582

Abstract Details

2009, PHD, Kent State University, College of Business and Entrepreneurship, Ambassador Crawford / Department of Management and Information Systems.
One of the primary drivers of offshoring systems development is anticipated cost savings. This focus on reduced cost is often overstated when considered relative to other factors such as the quality of the work products delivered by the vendor, distance and communication problems based on geographic separation, and additional time and effort managing the vendor. Despite this focus on cost, companies frequently overlook these ancillary or hidden costs that contribute to the Total Cost of Ownership of IT Infrastructure (TCO-ITI). These additional costs are silently absorbed by the organization as extra effort by current staff, yet need to be included in the analysis. Thus far we have not done much in the way of actual study of the offshoring process, its benefits and its problems. As a relatively recent phenomenon, there is currently no defining theory in the area of offshore systems development as in other areas of Information Technology research. This research builds upon work in the areas of Agency Theory, Geographical Economics, and Expectations Confirmation Theory to propose and evaluate a model for performing offshore systems development. Through integration of these theories and focus on the cost proposition for clients seeking to offshore their systems development activities, this dissertation looks at the impact of the quality of the delivered system on the cost to the client. Factors that may serve to decrease the quality of the delivered system include inexperience of the vendor personnel developing the system, communication problems between the client and vendor, and distance between parties, thus providing the client with a lesser solution than originally expected. This research studies the largest offshoring engagement at a large manufacturing company through surveys and interviews with client Information Technology personnel. Results are reviewed and analyzed by a team of academic and industry professionals to mitigate interpreter bias. Based on the results of this analysis, offshoring systems development did not meet client expectations and resulted in increased costs to the client in undertaking this direction. The dissertation concludes with discussion of some of the problems that occurred in this engagement and makes suggestions to improve future offshoring engagements.
Alan Brandyberry, PhD (Committee Chair)
Jay Weinroth, PhD (Committee Member)
Jay Muthuswamy, PhD (Committee Member)
178 p.
Information Systems; Management
Offshore Outsourcing; Outsourcing; Systems Development

Recommended Citations

Citations

  • DeHondt, II, G. R. (2009). An Analysis of the Effectiveness of Offshore Systems Development [Doctoral dissertation, Kent State University]. OhioLINK Electronic Theses and Dissertations Center. http://rave.ohiolink.edu/etdc/view?acc_num=kent1259462582

    APA Style (7th edition)

  • DeHondt, II, Gerald. An Analysis of the Effectiveness of Offshore Systems Development. 2009. Kent State University, Doctoral dissertation. OhioLINK Electronic Theses and Dissertations Center, http://rave.ohiolink.edu/etdc/view?acc_num=kent1259462582.

    MLA Style (8th edition)

  • DeHondt, II, Gerald. "An Analysis of the Effectiveness of Offshore Systems Development." Doctoral dissertation, Kent State University, 2009. http://rave.ohiolink.edu/etdc/view?acc_num=kent1259462582

    Chicago Manual of Style (17th edition)

kent1259462582
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© 2009, all rights reserved.
This open access ETD is published by Kent State University and OhioLINK.