week8 - Signature Assignment: Developing My Topic and My Literature Review

Developing Topic and Literature Review

BUS-7100: Scholarly Literature Review February 14h, 2021

The Risk of Business Performance result from Information Technology Outsourcing

The Information Technology (IT) growth increased the demand for more transactions within the business and between the business and consumers. Most of the organization's technology groups stay internally within the organization to support the needs. With the rapid growth in the business needs, organizations are trying to sustain the needs and outsource some of their information technology functions. Globalization of the world modified the business's approach from insourcing to outsourcing mode of production. The efficiency of time management and cost management determines the organization's business performance.

Outsourcing involves many factors like technology, financial considerations, and time considerations. Outsourcing can also negatively impact the employees, which may translate to a risk on the business performance. In this part of the dissertation, the author talks about business performance risk due to IT outsourcing in an organization (Munoz, 2017).

Statement of Problem

The problem to be addressed by this study is to identify the risk of the organization on business performance resulting from Information Technology outsourcing. Shifting the internal in-house work to external service providers is outsourcing. This outsourcing translates to customer satisfaction and mainly gains the competitive advantage, which is the primary goal of outsourcing. Outsourcing may raise multiple issues with network security, connectivity, and integrity of the resources. The organizations' data is sometimes very confidential. With outsourcing, the risk of data sharing increases. The organization's security checks may be different from an outsourcing vendor, which brings risks to the organization through the vendor. This may eventually impact employee’s performance in the operations of the business. When outsourcing, a portion of the technology is having issues, other parts of the internal resources are

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Developing Topic

used to rectify the problems, which may impact other business areas. This will translate into insufficient resources in other areas, and it will bring poor business performance. That eventually raises multiple risks to the organization. There is no conclusive quantitative analysis of the relationship between organization business performance due to outsourcing and IT services' risk, whether network security or application maintenance. Outsourcing also brings some portion of job dissatisfaction as some of the internal organization jobs are closed with moving to an outsourcing vendor. These effects differ on the organization size, outsourcing organization, and what portion of the work organization is trying to give to outsourcing vendors (Balogun, 2013).

Purpose of the Study

The purpose of the nonexperimental quantitative study is to evaluate the risk of outsourcing a portion of IT services to a third-party vendor. From the business perspective, outsourcing is a logical solution in multiple factors, including competitive advantage and time management. Business performance is the criterion variable; risk identification and company size are the predictor variables in this analysis. There are around 100 employees from an organization working within Information Technology are participated in this research. There is an online survey conducted for these participants. Factorial analysis of variance is performed to find the difference between business performance and risk factors. The data from this study is added to the literature by identifying the risk factors on information security on the organization, resource satisfaction, and the effect on the business performance (Brydges, 2019).

Conceptual Framework

Organizations involved in IT outsourcing can be analyzed using transaction costs. This concept of transaction costs can be expanded using transaction cost economics, a study of the contractual relations and governance. In this study, organization maximized their profits by exchanging information. Three dimensions determine the transaction costs; they are frequency of transaction, the uncertainty of the transaction, and asset specificity. A significant influence of transactions happened with the frequency of transactions. The transaction frequency increases the trust in both parties and reduces opportunistic behaviors. The limitation of the forecast of the results of the transaction is the uncertainty of the transaction. The difficulty of moving a resource for another use is asset specificity. As per the transaction cost analysis, the hazards of contracting increases when simple contracts give way to significant deals in the organization (Balogun, 2013). Figure 1 provides a conceptual mapping of the transaction costs.

Figure 1

Conceptual mapping for Transaction costs

Integrated system theory is used to analyze when an organization is involved in outsourcing the IT organization's network security systems. The transdisciplinary study of systems to explain the principles to apply in all types of research fields is integrated systems

theory. This theory is beneficial to understand information security management and strategies. Integrated systems theory provides a framework in terms of profit and risk tradeoff. In this study, integrated systems theory is used to maximize profit using outsourcing and maintaining network security. The risk and size of the organization are examined with the growth of outsourcing. Small organizations think that they are not well recognized compare to larger companies. Larger companies receive better packages, and small companies may have to pay more for similar packages. Whether it is small or large, both companies will suffer if the risks are not calculated correctly. Hidden costs need to be considered while calculating the risks.

Generally, larger companies get the best service with lower risks, but the small companies have to wait for the opportunity. Figure 2 gives the conceptual mapping for integrated systems theory. In some cases, small companies make good relations with the outsourcing companies compare to larger companies, which may change the risk levels. Per the integrated systems theory, the organizations need to observe if the outsourcing benefits may outweigh the saving in transaction costs (Balogun, 2013).

Figure 2

Conceptual mapping for Integrated System Theory

For the employee experience with the change process measurement, the expectancy theory of motivation is used in this framework. Attributes that contribute to workplace behavior is the expectancy theory. The three elements that affect motivation are instrumentality, expectancy, and valence. Hard work produces specific outcomes, and that is called instrumentality. Employees receive certain rewards for the effort exerted, and that is called expectancy. The value that makes an attempt worthwhile is called valence. Putting all these together, if the outcome (valence) is attractive, individuals are motivated to take action (instrumentality)(Munoz, 2017). This conceptual framework guides research information security, employee satisfaction, and business performance with outsourcing (Prawesh et al., 2021).

IT Outsourcing Challenges and Success

Sending some or more functions of the company to other companies is called outsourcing. Information Technology is one of the most outsourced processes. Cost reduction, focus on core functionalities of the company, and performance improvement are some of the reasons companies tend to move toward outsourcing. India and China are the countries where most IT outsourcing happens these days. To achieve success with offshore IT outsourcing, the IT vendor needs excellent capabilities. In this article, the author talks about a model that explains the relations between capabilities in managing outsourcing challenges with IT offshore and spoke about its impact. The author obtained 64 samples from Indonesian IT vendors conducting IT offshore projects (Yogi et al., 2019).

After the research results, the author Yogi concludes that IT vendors should build interaction capability to achieve offshore outsourcing. IT vendor needs to make sure that they have the top management support to get the right resources. The author also encourages to learn

the client culture to smooth interaction. One of the limitations in this article is that the samples are from the vendors, but it is missing the clients' feedback (Yogi et al., 2019). The article author Yogi talks about the capabilities needed for any vendor company to survive in IT outsourcing, especially in Indonesia. Reviewing 64 samples gives better information for other IT vendors.

Data Mining tools

Data mining tools promote physical education and training; it helps to facilitate tactical and technical analysis. In this article, the author talked about how big data techniques are used to analyze competitive data for sports. The author designed an algorithm to develop the data mining tools used with the data for sports. This article's findings help promote big data technology in this particular sports area (Pan, 2019).

Data mining is nothing but an information processing method using multiple theories and technologies. Data mining relays statistical analysis, which helps to summarize and extract information. Data mining depends on the decision tree structure, which represents set off decisions. Data mining depends on the decision tree structure, which means a set of decisions in the process. Data mining also uses fuzzy logic and artificial neural networks. After all the data analysis, data mining uses visualization technology to present the final presentation (Pan, 2019). The author selected badminton sport as an example in this article. The author can identify and exact the information from the competition data and use big data to help coaches conduct physical education and guidance in a targeted way. This tool makes a huge difference in the athletes’ world as it helps to avoid weaknesses and develop strengths. This tool will also help to improve the tactics and techniques(Pan, 2019).

Evolution of Project Management

There are multiple ways to approach a project by a Project Manager. A framework like PMBOK (Project Management Body of Knowledge) and PRINCE2 (Projects in Controlled Environment) helps project or program managers with project management tools and techniques. PMBOK framework is published in 1996 by the Project Management Institute (PMI) (Cesarotti et al., 2019).

Tasks are straight forward and clear with boundaries in traditional project management (TPM). Initiating, Planning, Executing, Controlling & Monitoring, and Closing are the five primary processes in any TPM. For software projects, Agile Project Management (APM) is created. APM mostly uses SCRUM and Extreme Programming as the project management approach on any project. Continuous learning and adaptation are the keys to the agile project management approach. Lean Project Management is another approach; it focuses on removing waste and creating value. Lean project management is successful and used more in the product environment. Six Sigma is another approach; it is a data-driven methodology to improve the process. Six Sigma projects use the DMAIC framework. Define, Measure, Analyze, Improve, and Control is the DMAIC framework phases (Cesarotti et al., 2019). The author of this article compared the above four project management tools for analysis. The author compared them around the lifecycle approach, internal communication, leadership style, customer role, rework, risk, cost, delivery team dimension, and main application (Cesarotti et al., 2019).

Global Technology changes in Accounting Systems

In Accounting Systems, how modern technologies are playing a pivotal role is the content in this article. The technological changes happen in three cycles. Innovation is the first cycle; it occurs at the beginning of economic growth, a technological revolution. Application is the second cycle; it happens with a period of economic growth. Stagnation is the next cycle; it

occurs when the market is at the saturation stage with technological products. In the last stage, new technical research starts for a new process or new product (Osmyatchenko et al., 2019).

The accounting business processes are changing using Artificial Intelligence (AI). The resources work is moving from routine tasks to managerial work. With the AI Global Information Systems, the life of accounting is changing. With the globalization processes and technology changes, accounting principles are adapted to new operating conditions.

Simultaneously, the accounting rules are mostly regulated by the local country or the local government, and implementing international accounting experience has its challenges. Dynamic changes in the technology sector demand flexible accounting processes, and the accounts' professional skills need continuous modification. In the digital world, technological changes and data processing speed are crucial (Osmyatchenko et al., 2019).

Risks and Awareness on e-communication

In the 20th century, with electronics growth, communication changed in the world. It also created multiple security issues with the innovations growing in the communication field, the rise in social media and smartphones. In this paper, the author talked about privacy and security risks with electronic communication (Turkanović & Polančič, 2013).

Data exchange happens in electronic communication. There are multiple types of e- communications, like smartphones, instant messaging, social media, and websites. Apparatus and Application are the two categories in e-communication. The author discussed apparatus category e-mail and application category social media in this article. The top online activity is e- mail, and now social media is coming close to it. As mobile usage increases, e-mail usage is coming down, and web usage is going up (Turkanović & Polančič, 2013).

Unauthorized access to personal data is secure in e-communication. Every individual has the right to control their personal information usage. As security is a property assigned to a computer, privacy is assigned to the individual in the same way. As technology is growing, more people are using e-communication, whether professional or private. With this, the privacy concerns are keeping going up (Turkanović & Polančič, 2013).

Online privacy 2011 results say that 94% think they need online privacy and 75% believe that the internet is not regulated. The author went through multiple surveys to show us people's feedback on privacy. For any smartphone user, privacy is a huge concern. For teens and parents with social networking, one of the surveys clearly says that privacy is essential for this group. In 2008 around two billion phones are sold in the world. With smartphone sales going up exponentially, the concerns on privacy are growing every year. Most people carry their personal information on the phone, which is a considerable risk for that person. The article also discussed solutions and created awareness about the risks (Turkanović & Polančič, 2013).

Benefits of real-time Business Intelligence tools

Real-Time Business Intelligence (RTBI) benefits to the organization compare to delayed Business Intelligence (BI) is the main topic in this article. Extract, transform, and load is the normal ETL process, which generally an overnight batch process. Regular BI is mostly not linked to the real-time business process. The main objective of RTBI is to reduce action time and increase business value (Dobrev & Hart, 2015).

Compare to traditional BI, RTBI is an evolutionary process. In any organization implementing RTBI means multiple changes to the existing traditional BI architecture. This article discussed implementing Enterprise Service Bus (ESB) to better communicate between the

current applications and integrate various applications. As a first step, organizations need to re- engineer the business process, clarify the needs, evaluate the current BI area, and finalize whether to build it from scratch or buy it. RTBI can be used in predictive analytics, dynamic pricing, demand monitoring, fraud detection, supply chain improvement, and forecasting (Dobrev & Hart, 2015).

Overall, RTBI benefits organizations with real-time data, better prediction, and better process improvements. Moving to real-time is a massive move for organizations; they need to decide whether to move real-time or near-time. Risks and benefits need to be reviewed before moving to RTBI.

Information Systems Security

In 2011 the global software piracy rate was around 42 percent. Unethical behaviors are created with the ease and availability of the internet and new technology. Some of the deliberate security violations are created by unethical IT usage (Chatterjee et al., 2015).

How unethical IT usage attitude is impacting the world is the topic in this article. As per the author's notes, the individual with technical idealism has a negative mindset with IT's unethical usage. In some countries, unethical use of IT does not have any punishment, which could also be one of the reasons for this unethical usage. Technology growth is adding benefits, but at the same time, it adds risks, too; technology growth is a double-edged sword. Few individuals try to get some gain from unethical usage; that is the main factor for this behavior.

These unethical behaviors bring more attention to IT security. These behaviors might bring massive security breaches to the organization. The author also talks about age groups who are more into these unethical behaviors (Chatterjee et al., 2015).

Summary

Organizations always look to maximize short term and long term profits. One of the ways of increasing the profit is to outsource part of the IT organization. Outsourcing eventually increases the security risk and resource dissatisfaction (Mikhael, 2020). The final result may be a poor organization’s performance. Outsourcing helps to reduce the transactional cost, but eventually, it increases the security vulnerabilities. It is crucial for the organization to measure their network security and other security protocols for the organization involved in outsourcing. These extra steps will help the organization minimize the risks and threats from a security perspective, which may come with the vendor. The organization needs to keep close monitoring of employee satisfaction and take the necessary measures as outsourcing can indirectly impact employee satisfaction.

Literature reviews are used to evaluate policies by reviewing best practices or by assessing the effectiveness of the specific application, or only by updating the necessary knowledge (Koons et al., 2019). Generally, the literature review involves four main steps: In the first step, the author develops and refines the literature's scope to be reviewed. In the second step, the author searches and get the right research material. In the third step, the author reads through the studies and assess the information. In the last step, the author writes the report and summarizes the information. Depends on the dissertation's complexity, before the author completes the review, there may be several rounds of searching, reading, and writing (Meth & Williams, 2020).

The author reviewed two dissertations to understand the literature review. Chapter 1 section contains the statement of the problem, the purpose of the study, conceptual framework,

research questions, and summary. Chapter 2 discusses a detailed discussion on the conceptual framework, knowledge sharing, reasons, and summary. In one of the dissertation's summary, it is stated that how an extensive literature review showed and supported the phenomenon expecting part of the dissertation. In that particular dissertation summary, the author talked about people differences, team issues, architectural issues, technology issues, customer issues, and collaboration issues (Murphy, 2020). The conceptual models are discussed in this article as part of the literature review.

References

Balogun, S. A. (2013). The effects of risk and size of company on business performance in information technology outsourcing (Ph.D.). Available from Dissertations & Theses @ Northcentral University. (1400224467). https://proxy1.ncu.edu/login?url=https://www- proquest-com.proxy1.ncu.edu/dissertations-theses/effects-risk-size-company-on-business- performance/docview/1400224467/se-2?accountid=28180

Brydges, C. R. (2019). Effect size guidelines, sample size calculations, and statistical power in gerontology. Innovation in Aging, 3(4), igz036. https://doi.org/10.1093/geroni/igz036 Cesarotti, V., Gubinelli, S., & Introna, V. (2019). The evolution of project management (PM):

How agile, lean, and six sigma are changing PM. Journal of Modern Project Management, 7(3), 1-29. https://doi.org/10.19255/JMPM02107

Chatterjee, S., Sarker, S., & Valacich, J. S. (2015). The behavioral roots of information systems security: Exploring critical factors related to unethical IT use. Journal of Management Information Systems, 31 (4), 49. http://proxy1.ncu.edu/login? url=https://search.ebscohost.com/login.aspx? direct=true&db=edb&AN=102702506&site=eds-live

Dobrev, K., & Hart, M. (2015). Benefits, justification, and implementation planning of real-time business intelligence systems. Academic Conferences & Publishing International Ltd.

Koons, G. L., Schenke-Layland, K., & Mikos, A. G. (2019). Why, when, who, what, how, and where for trainees writing literature review articles. Annals of Biomedical Engineering, 47(11), 2334-2340. https://doi.org/10.1007/s10439-019-02290-5

Meth, P., & Williams, G. (2020). Doing development research; pages 209-221. (). SAGE Publications, Ltd. https://doi.org/10.4135/9781849208925

Mikhael, M. (2020). The impact of ethical leadership on employee job satisfaction (D.B.A.).

Available from Dissertations & Theses @ Northcentral University. (2425020006). https://proxy1.ncu.edu/login?url=https://www-proquest-com.proxy1.ncu.edu/dissertations- theses/impact-ethical-leadership-on-employee-job/docview/2425020006/se-2? accountid=28180

Munoz, E. (2017). Exploring morale, motivations, and commitment of employees affected by outsourcing and divestiture (D.B.A.). Available from Dissertations & Theses @ Northcentral University. (1960868768). https://proxy1.ncu.edu/login?url=https://www- proquest-com.proxy1.ncu.edu/dissertations-theses/exploring-morale-motivations- commitment-employees/docview/1960868768/se-2?accountid=28180

Murphy, K. J. (2020). Intra-team and inter-team knowledge sharing in multinational corporation agile projects: A qualitative phenomenological study (D.B.A.). Available from Dissertations & Theses @ Northcentral University. (2435230720). https://proxy1.ncu.edu/login? url=https://www-proquest-com.proxy1.ncu.edu/dissertations-theses/intra-team-inter- knowledge-sharing-multinational/docview/2435230720/se-2?accountid=28180

Osmyatchenko, V., Oliinyk, V., Mazina, O., Matselyukh, N., Ilin, V., & Orzeł, A. (2019). The influence of the global technological changes on principles and functions of accounting and formation of the organization strategy. Journal of Security & Sustainability Issues. https://doi.org/10.9770/jssi.2019.8.4(7)

Pan, L. (2019). A big data-based data mining tool for physical education and technical and tactical analysis. International Association of Online Engineering (IAOE). https://doi.org/10.3991/ijet.v14i22.11345

Prawesh, S., Chari, K., & Agrawal, M. (2021). Industry norms as predictors of IT outsourcing behaviors. International Journal of Information Management, 56. https://doi.org/10.1016/j.ijinfomgt.2020.102242

Turkanović, M., & Polančič, G. (2013). On the security of certain e-communication types: Risks, user awareness, and recommendations. Journal of Information Security and Applications, 18(4), 193-205. https://doi.org/https://doi-org.proxy1.ncu.edu/10.1016/j.jisa.2013.07.003

Yogi, Y. W., Govindaraju, R., Irianto, D., & Sudirman, I. (2019). Capabilities in managing offshore IT outsourcing challenges and the influence on outsourcing success from the IT vendor perspective. International Journal of Technology, 10(4), 841-853. https://doi.org/10.14716/ijtech.v10i4.885