China's Emerging Outsourcing Capabilities: The Services Challenge

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In recent years the Chinese government has assigned a high priority to science and technology services as its future growth sectors. This vision is being supported with the establishment of research and technology parks, favorable tax incentives, policy reform, grants to help Chinese firms achieve certifications, investments in infrastructure, and promotion of IT outsourcing (ITO) and business process outsourcing (BPO) services. Beyond the aspirations of its leaders, is China ready to compete in the global ITO and BPO markets? How can Western managers successfully engage Chinese ITO/BPO suppliers?

Leading scholars and practitioners in the sector help answer these questions in this book which reports on findings from over 500 interviews, 300 surveys, and numerous detailed case studies and presentations. Authors analyze the strengths and weaknesses of China's ITO and BPO capabilities, and prescribe lessons for western managers seeking to engage Chinese suppliers. Several chapters contain studies of Chinese suppliers and clients engaged in particular ITO or BPO service, including, procurement, media relations, logistics, and research and development. Overall, the Chinese ITO and BPO markets are changing rapidly as they both respond to and help form the global outsourcing landscape. This book provides an in-depth, contemporary view on where China is heading, how it is going to get there, and how companies and countries can engage with China's emerging outsourcing capabilities.

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Product Details

Meet the Author

MARY C. LACITY is a Professor of Information Systems and an International Business Fellow at the University of Missouri-St. Louis. Her current research focuses on global outsourcing of business and IT services. She has published 11 books, most recently Information Systems Outsourcing: Theory and Practice (Palgrave, 2009; coauthor: Leslie P. Willcocks) and Offshore Outsourcing of IT Work, (Palgrave, 2008; coauthor Joe Rottman). 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 is Senior Editor of the Jourbanal of Information Technology, Co-editor of the Palgrave Series: Work, Technology, and Globalization and on the Editorial Boards for MIS Quarterly Executive, Jourbanal of Strategic Information Systems, Strategic Outsourcing: An International Jourbanal, and Jourbanal of the Association for Information Systems (JAIS).

LESLIE P. WILLCOCKS is Professor of Technology Work and Globalization at the London School of Economics and Political Science, head of the Information Systems and Innovation Group and director of The Outsourcing Unit there. He is known for his work on global sourcing, information management, IT evaluation, e-business, organizational transformation as well as for his practitioner contributions to many corporations and government agencies. He holds visiting chairs at Erasmus, Melbourbane and Sydney universities and is an Associate Fellow at Templeton, University of Oxford. He has been Editor-in-Chief of the Jourbanal of Information Technology for the last 20 years, and is joint series editor, with Mary C. Lacity, of the Palgrave book series Technology Work and Globalization. He has co-authored 31 books, including most recently Major Currents in Information Systems (Sage, London 2008, with Allen Lee), and Global Sourcing of Business and IT Services (Palgrave, London, 2006, with Mary C. Lacity) He has published over 180 refereed papers in jourbanals such as Harvard Business Review, Sloan Management Review, MIS Quarterly, MISQ Executive, Jourbanal of Management Studies, Communications of The ACM, and Jourbanal of Strategic Information Systems.

YINGQIN ZHENG is a research associate at the London School of Economics. She obtained her MPhil and PhD from Cambridge University. She was a Gates Cambridge scholar. Her research interests include the implications of information and communication technology in social development, information society and information culture, and distributed innovation. She has conducted research in various countries including South Africa, China, Switzerland and the UK. Yingqin has published a number of academic papers in international jourbanals, and conferences. Her work was awarded Best Paper Finalist at the International Conference of Information Systems 2007, and Highly Commended Award at the Literati Network Awards for Excellence 2009.

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Table of Contents

List of Tables and Figures vii

List of Appendices ix

Series Preface x

Acknowledgements xiv

Notes on Contributors xv

Introduction Mary C. Lacity Leslie P. Willcocks Yingqin Zheng 1

Part I Perspectives on China's Emerging Outsourcing Capabilities

1 China's Emerging Software Services Outsourcing Industry Yingqin Zheng Leslie Willcocks Bo Yang 17

2 The Maturing Chinese Offshore IT Services Industry: It Takes Ten Years to Sharpen a Sword Erran Carmel Guodong Gao Ning Zhang 37

3 China, Services Outsourcing and the World: Joint research by Accenture and the China Council of International Investment Promotion (CCIIP) edited John Hindle 57

4 Outsourcing in China: Lessons Learned Wendell O. Jones 89

Part II Research Studies on China's Emerging Outsourcing Capabilities

5 Mediated Offshore Software Services Models in China: A Two-stage Study of Operational Capabilities Development Sirkka L. Jarvenpaa Ji-Ye Mao 109

6 Testing Alternative Perspectives of Governance in China: A Focus on Social Ties, Relational Governance and Contracts Laura Poppo Kevin Zheng Zhou 139

7 Knowledge Sharing in Professional Services Firms in China Robert M. Davison Maris G. Martinsons Carol X. J. Ou 165

8 The Role of Trust and Control in IS Offshoring from Vendors' Perspectives Ji-Ye Mao Jae-Nam Lee Chun-Ping Deng 184

9 Drivers and Obstacles of Outsourcing Practices in China Kwok Hung Lau Jianmei Zhang 216

10 Barriers and Enablers when Transferring R&D Practices from the West to China Joachim A. Timlon Niklas Ã…kerman 236

Index 264

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