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Portfolio of Control in Outsourced Software Development Projects

Authors:
Vivek Choudhury
Vivek Choudhury
Vivek Choudhury
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Rajiv Sabherwal at University of Arkansas at Fayetteville
Rajiv Sabherwal
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Abstract

This paper examines the evolution of portfolio of controls over the duration of outsourced information systems development (ISD) projects. Drawing on five cases, it concludes that many findings from research on control of internal ISD projects apply to the outsourced context as well, but with some interesting differences. The portfolios of control in outsourced projects are dominated by outcome controls, especially at the start of the project; although the precision and frequency of these controls varies across projects. Behavior controls are often added later in the project, as are controls aimed to encourage and enable vendor self-control. Clan controls were used in only two of the cases--when the client and vendor had shared goals, and when frequent interactions led to shared values. In general, the outsourced projects we studied began with relatively simple controls but often required significant additional controls after experiencing performance problems. Factors influencing the choice and evolution of controls are also examined.
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Portfolios of control in outsourced software development projects
Vivek Choudhury; Rajiv Sabherwal
Information Systems Research; Sep 2003; 14, 3; ABI/INFORM Global
pg. 291
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... Both control intentions can be implemented through preventive control practices, when controllers seek to avoid issues from occurring, or corrective control practices, when they try to detect issues and then remedy them (Cram & Brohman, 2013). (Choudhury & Sabherwal, 2003;Kirsch, 1996Kirsch, , 1997Ouchi, 1979) Output control Specifying, monitoring outputs, rewarding, or sanctioning controlees Self-control Self-monitoring of controlee behaviors based on individual standards and objectives Clan control Shared norms, values, and common vision within a group that motivate goal-oriented behavior Control styles Authoritative Ensuring and enforcing compliant controlee behavior with low efforts towards transparency and repair (Wiener et al., 2016) Enabling Collaborative efforts to reach compliant controlee behavior with high efforts towards transparency and repair Control purposes Prevention of value appropriation Controls intended to safeguard values from appropriation, minimizing agency problems. Ensuring value creation Controls intended to foster coordination and cooperation through empowerment, guidance, and facilitation. ...
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