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Journal Article

Using Regression Analysis to Address Methodological and Theoretical Issues in IT Cost Benchmarking  pp22-35

Vlad Krotov

© Mar 2016 Volume 19 Issue 1, Editor: Shaun Pather, pp1 - 82

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Abstract

Abstract: The practice of IT cost benchmarking using IT managerial control ratios suffers from a number of methodological and theoretical issues. These issues arise from the following three assumptions: (1) the functional form of the relationship between a numerator and denominator used in an IT managerial control ratio is strictly proportional; (2) the nature of the underlying probability distribution of industry samples of IT managerial control ratios is normal and (3) position of an organization in relation to an industry norm can be unambiguously interpreted. If these assumptions are not met, then determining and interpreting a company’s position with respect to IT costs in relation to industry averages and other companies within the industry is subject to some ambiguity. This paper uses empirical tests and theoretical arguments to show that these three assumptions may not hold true in practice. It is then argued that regression‑based analysis of IT costs can be used to address these issues. Further theoretical and empirical work is needed to develop these regression models so that practitioners can have a reliable and valid method for estimating and interpreting their company’s position with respect to IT costs in relation to an industry norm. At the minimum, practitioners should not rely on IT cost benchmarking for setting their IT budgets without taking into account the methodological and theoretical issues.

 

Keywords: Keywords: IT costs, IT spending, IT budget, justification, benchmarking, methodology, theory

 

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Journal Article

Human Resources Transformation Beyond Boundaries in Outsourcing Business Model ‑ Expatriate Benchmarking  pp204-215

Swathi Duppada, Rama Chandra Aryasri

© Sep 2011 Volume 14 Issue 2, ICIME 2011, Editor: Ken Grant, pp167 - 281

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Abstract

Human Resource (HR) divisions of multi national companies (MNCs) are under tremendous pressure globally with the challenges and opportunities with the outsourcing business models to maintain competitive position in the marketplace. Attracting the mobile talent with multi dimensional skill set to address effective, efficient and controllable business needs is becoming complex, hence expatriate management and training has gained much attention. Successful Expatriate assignments drive revenue, value and growth to the organization. The expatriation process requires huge amount of effort for analysis, planning, selection and training before the departure of the associate to the host country from the home country. The authors would like to bring the practical approaches that needs to be considered in global business outsourcing model considering 3 dimensions … Associate delight, Customer delight and Investor delight with expatriate benchmarking. The research study also brings the expatriate management strategies in 3 categories … Onsite (foreign location / host country), Offshore (home country) and Near‑shore (country close to host country, but with lesser delivery cost). To substantiate the research, the data is collected from several Human resource leaders and managers at various levels … HR Executives, HR Analysts, HR Managers, Senior Managers from IT organizations in different geographies through interviews and web based surveys. Statistical analyses are conducted on the data collected through multiple channels and these analysis reveal that a) the organizations with good global management strategy had larger number of associates with better expatriate experience, steadier focus on leadership, resulted in better financials b) The training is mor e focused on technology and job related skill set, but often ignored the level of depth in imparting the behavioural and cultural skills. The main contributions of the paper are we have proposed expatriate transformation canonical model for expatriate resource requirements fulfilment requests originating across the globe for IT services organizations. Following the IT services industry, we have followed the benchmarking methodology and used a template to understand the expatriate management practices, in the past and present, as a part of the human resource management function and extrapolated the data for the future expatriate operations by strategically building a manageable operational model by utilizing and tuning the organization culture

 

Keywords: benchmarking, expatriate management, expatriate training, ROI, onsite, offshore, near-shore

 

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