IDEAS home Printed from https://ideas.repec.org/a/bit/bsrysr/v3y2012i1p4-13.html
   My bibliography  Save this article

Critical success factors for offshoring of enterprise resource planning (ERP) implementations

Author

Listed:
  • Chauhan Rajneesh

    (Institute of Management Technology (CDL), Ghaziabad, India)

  • Dwivedi Rajeev

    (Institute of Management Technology (CDL), Ghaziabad, India)

  • Sherry Arun

    (Institute of Management Technology (CDL), Ghaziabad, India)

Abstract

Background: In recent years, offshoring enterprise resource planning (ERP) implementation has been an emerging trend in the field of offshoring information technology (IT). However, both ERP implementations and IT offshoring are fraught with risks, and when both ERP implementation and IT offshoring happen together, the risks become even more pronounced. Therefore, it is important to understand and identify the issues of ERP implementation in an offshoring situation. Objectives: The purpose of this paper is to highlight the key factors that enable successful offshoring ERP implementation from the client and the vendor perspective. Methods/Approach: The paper uses literature as a basis for identifying a critical success factor, data collected through semi-structured interviews with ERP managers at various levels of the subject organizations, and eventually their analysis. Results: The findings of the paper reveal that various factors are critical while implementing offshoring ERP. They include: offshoring partnership, project management, project team composition, people issues, communications and compliance of the onsite team composition. It is also noticed that ten factors are grouped into three categories: the client side, the vendor side, and both. Conclusions: Organizations are currently undertaking or considering the offshoring ERP implementation particularly from India. This paper will enable them to understand the possible challenges and areas of offshoring the ERP implementation program. The value and originality of the paper comes from the fact that up to now, ERP implementation in offshoring has not been comprehensively explored. This research provides a complete understanding of the critical success factors from the client, the vendor or both the client and the vendor perspective. It also enables researchers to analyse ili rethink ili review offshoring in different service areas.

Suggested Citation

  • Chauhan Rajneesh & Dwivedi Rajeev & Sherry Arun, 2012. "Critical success factors for offshoring of enterprise resource planning (ERP) implementations," Business Systems Research, Sciendo, vol. 3(1), pages 4-13, June.
    • Handle: RePEc:bit:bsrysr:v:3:y:2012:i:1:p:4-13
    DOI: 10.2478/v10305-012-0001-5
    as

    Download full text from publisher

    File URL: https://doi.org/10.2478/v10305-012-0001-5
    Download Restriction: no
    File URL: https://libkey.io/10.2478/v10305-012-0001-5?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Mary C. Lacity & Leslie P. Willcocks, 2009. "Information Systems and Outsourcing," Palgrave Macmillan Books, Palgrave Macmillan, number 978-0-230-59483-8, December.
    2. Bradley, Joseph, 2008. "Management based critical success factors in the implementation of Enterprise Resource Planning systems," International Journal of Accounting Information Systems, Elsevier, vol. 9(3), pages 175-200.
    3. Lampel, Joseph & Bhalla, Ajay, 2008. "Embracing realism and recognizing choice in IT offshoring initiatives," Business Horizons, Elsevier, vol. 51(5), pages 429-440.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Adilson Carlos Yoshikuni & Rajeev Dwivedi & Ronaldo Gomes Dultra-de-Lima & Claudio Parisi & José Carlos Tiomatsu Oyadomari, 2023. "Role of Emerging Technologies in Accounting Information Systems for Achieving Strategic Flexibility through Decision-Making Performance: An Exploratory Study Based on North American and South American," Global Journal of Flexible Systems Management, Springer;Global Institute of Flexible Systems Management, vol. 24(2), pages 199-218, June.
    2. Murilo Catussi Almeida & Adilson Carlos Yoshikuni & Rajeev Dwivedi & Cláudio Luís Carvalho Larieira, 2022. "Do Leadership Styles Influence Employee Information Systems Security Intention? A Study of the Banking Industry," Global Journal of Flexible Systems Management, Springer;Global Institute of Flexible Systems Management, vol. 23(4), pages 535-550, December.
    3. Jaya Ahuja & Harish Puppala & Rommel P. Sergio & Ettiene Paul Hoffman, 2023. "E-Leadership Is Un(usual): Multi-Criteria Analysis of Critical Success Factors for the Transition from Leadership to E-Leadership," Sustainability, MDPI, vol. 15(8), pages 1-20, April.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Matilda Alexandrova, 2015. "Risk Factors in IT Outsourcing Partnerships: Vendors’ Perspective," Global Business Review, International Management Institute, vol. 16(5), pages 747-759, October.
    2. Wojciech Piotrowicz & Damian Kedziora, 2018. "Outsourcing of Information Technology and Business Processes in Poland: Motivations and Environmental Factors," Managing Global Transitions, University of Primorska, Faculty of Management Koper, vol. 16(4 (Winter), pages 307-333.
    3. Emilio Alvarez-Suescun, 2010. "Combining transaction cost and resource-based insights to explain IT implementation outsourcing," Information Systems Frontiers, Springer, vol. 12(5), pages 631-645, November.
    4. repec:vnm:wpdman:77 is not listed on IDEAS
    5. Williams, Christopher & Durst, Susanne, 2019. "Exploring the transition phase in offshore outsourcing: Decision making amidst knowledge at risk," Journal of Business Research, Elsevier, vol. 103(C), pages 460-471.
    6. Mukta SAMTANI & Alexandru CAPATINA, 2012. "Achieving the next level of Growth through Competitive Intelligence Practices:An Exploratory Study of Romanian Offshore Technology Service Providers," Economics and Applied Informatics, "Dunarea de Jos" University of Galati, Faculty of Economics and Business Administration, issue 3, pages 15-20.
    7. Christian Peukert, 2012. "External Technology Supply and Client-Side Innovation," International Studies in Entrepreneurship, in: David B. Audretsch & Erik E. Lehmann & Albert N. Link & Alexander Starnecker (ed.), Technology Transfer in a Global Economy, edition 127, chapter 0, pages 161-184, Springer.
    8. Jolanta Sloniec, 2021. "A Longitudinal Analysis of IT Outsourcing in Large Polish Organizations," European Research Studies Journal, European Research Studies Journal, vol. 0(Special 2), pages 439-452.
    9. Manoj Thomas & Daniela Costa & Tiago Oliveira, 2016. "Assessing the role of IT-enabled process virtualization on green IT adoption," Information Systems Frontiers, Springer, vol. 18(4), pages 693-710, August.
    10. Arduini, Davide & Denni, Mario & Lucchese, Matteo & Nurra, Alessandra & Zanfei, Antonello, 2013. "The role of technology, organization and contextual factors in the development of e-Government services: An empirical analysis on Italian Local Public Administrations," Structural Change and Economic Dynamics, Elsevier, vol. 27(C), pages 177-189.
    11. Breunig, Christoph & Kummer, Michael & Ohnemus, Jörg & Viete, Steffen, 2016. "IT outsourcing and firm productivity: Eliminating bias from selective missingness in the dependent variable," ZEW Discussion Papers 16-092, ZEW - Leibniz Centre for European Economic Research.
    12. Jeremiah, Rupin, 2017. "DO FIRMS INNOVATE ABROAD? - The Case of Swedish R&D in India," SSE Working Paper Series in Business Administration 2017:4, Stockholm School of Economics, revised 07 Dec 2017.
    13. Nils Urbach & Tobias Würz, 2012. "How to Steer the IT Outsourcing Provider," Business & Information Systems Engineering: The International Journal of WIRTSCHAFTSINFORMATIK, Springer;Gesellschaft für Informatik e.V. (GI), vol. 4(5), pages 247-259, October.
    14. Chi, Maomao & Zhao, Jing & George, Joey F. & Li, Yanhui & Zhai, Shanshan, 2017. "The influence of inter-firm IT governance strategies on relational performance: The moderation effect of information technology ambidexterity," International Journal of Information Management, Elsevier, vol. 37(2), pages 43-53.
    15. Mazza Tatiana & Azzali Stefano, 2014. "Determinants of Information Technology Outsourcing," Scientific Annals of Economics and Business, Sciendo, vol. 61(1), pages 1-15, July.
    16. Sameer Dutta & Milton Silver & Olu Omolayole, 2017. "Impact of Relational Management and Culture on System Success Perceptions in an IT Outsourcing Project," International Journal of Business and Management, Canadian Center of Science and Education, vol. 12(8), pages 1-61, July.
    17. Wenbo Guo & Jing Betty Feng & Brad McKenna & Pengzhu Zhang, 2017. "Inter-organizational governance and trilateral trust building: a case study of crowdsourcing-based open innovation in China," Asian Business & Management, Palgrave Macmillan, vol. 16(3), pages 187-207, July.
    18. Fábio Albuquerque & Paula Gomes Dos Santos, 2023. "Recent Trends in Accounting and Information System Research: A Literature Review Using Textual Analysis Tools," FinTech, MDPI, vol. 2(2), pages 1-27, April.
    19. Roman Beck & Katharina Schott, 2012. "The Interplay of Project Control and Interorganizational Learning: Mitigating Effects on Cultural Differences in Global, Multisource ISD Outsourcing Projects," Business & Information Systems Engineering: The International Journal of WIRTSCHAFTSINFORMATIK, Springer;Gesellschaft für Informatik e.V. (GI), vol. 4(4), pages 183-192, August.
    20. Peterson, Helen, 2016. "Merging management ideals in Swedish IT offshoring," Scandinavian Journal of Management, Elsevier, vol. 32(2), pages 97-105.
    21. Kirchner, Alexander & Labusch, Nils & Lopez Cordoba, Adriana & Sartor, Sebastian & Tumbas, Sanja & Villalon, Enrique & Wiethoff, Sebastian, 2011. "Network e-Volution," ERCIS Working Papers 11, University of Münster, European Research Center for Information Systems (ERCIS).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bit:bsrysr:v:3:y:2012:i:1:p:4-13. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Peter Golla (email available below). General contact details of provider: https://www.sciendo.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.