Online Sourcing Marketplaces

The Changing Landscape of Global Outsourcing

Why is this study important?

Global outsourcing has traditionally been utilized by large corporations. Having deep pockets and a large professional staff was a prerequisite to being able to set up and sustain a successful outsourcing relationship. The arrival and growth of Online Sourcing Marketplaces (OSM), however seems to be changing this paradigm. By helping clients and providers connect online and facilitating their interaction, OSMs make global sourcing of services available to firms of all sizes. While currently the scope and volume of OSM transactions remain limited, both metrics have recorded a significant growth over the last several years. If this trend continues in the future, OSMs are likely to change the way firms create and manage their sourcing portfolios. The goal of our study, therefore, is to gain a better understanding of (1) why and how firms engage in sourcing and providing services through OSMs and (2) what strategies make such arrangements successful for the various stakeholders involved.

What do we mean by Online Sourcing Marketplaces?

We define Online Sourcing Marketplaces (OSMs) as an Internet environment where clients and providers of business services can meet, offer and bid for jobs, settle contracts, and carry out financial transactions. We apply this definition broadly and do not impose any constraints with respect to either a model of the interaction between clients and providers (e.g., auction, contest etc) or to the scope and nature of services traded (e.g., IT, legal, writing etc.)

Who can participate in the study?

Our goal is to have all types of OSM stakeholders included in the study. In particular, we solicit participation of individuals and companies acting as (1) buyers of services (i.e., clients), (2) suppliers of services (i.e., providers), and (3) platforms (i.e., companies that establish and maintain OSM web platforms).

Who are the researchers?

The project team is led by the business faculty from IESE Business School, University of Navarra, Spain and E. J. Ourso College of Business, Louisiana State University, USA.

	Dr. Rudy Hirschheim, Professor, Louisiana State University Rudy Hirschheim is Ourso Family Distinguished Professor of Information Systems at Louisiana State University. Professor Hirschheim's is a frequent author and international speaker on outsourcing and has been widely quoted in the press; Computerworld, The Wall Street Journal, Harvard Business Review, PC Week, CFO, MIS, and Sloan Management Review. He has also acted as a consultant on outsourcing for a number of large to medium-sized companies in the US, Europe, South Africa and South America. He has served on the Board of Directors for two high-tech companies.
	Dr. Sandra Sieber, Associate Professor, IESE Business School Sandra Sieber is an Associate Professor and Department Chair of Information Systems at IESE Business School. Currently, Dr. Sieber’s research is focused on how adoption of IT-enabled innovations changes work-practices in such industries as banking, media and entertainment. From 2001 to 2004 she was appointed as the Academic Director of the PricewaterhouseCoopers - IESE eBusiness Center. In 2003, she was a visiting scholar at the Sloan School of Management, MIT.
	Dr. Evgeny Kaganer, Assistant Professor, IESE Business School Evgeny Kaganer is an Assistant Professor at IESE Business School where he teaches MBA and executive courses in IT management and e-business strategy. Dr. Kaganer’s research interests focus on IT innovation diffusion, industry transformations, and web-enabled business models. His professional experience includes five plus years as a regional manager in a major Russian financial services firm. He has also done consulting in the area of IT implementation and strategy for a number of small and medium-sized firms in the US and Europe.

How will the data be collected? How much time will it take to participate?

There are two options of how the data can be collected. Depending on the location, size, and profile of your firm, as well as your preferences, we can either arrange a phone interview or an on-site visit. Average time for a phone interview is expected to be around 45 minutes. Details for on-site visits will be worked out on an individual basis.

Will the data be kept confidential?

Yes, the data provided by the participants will be kept strictly confidential. No identifying information (of individuals or organizations) will be kept with the data or reported in any of the project reports or documents.

What are the benefits of participating?

Each person or organization participating in the study will receive a detailed report of study findings and recommendations. As one of the first comprehensive examinations of the OSM phenomenon, the report will benefit anyone who is currently engaged in or is considering engaging in OSMs.

Key highlights of the study will be published in relevant journals and magazines, increasing visibility of the OSM sourcing model in the broader business community. In addition, the findings will be distributed to IESE alumni and IESE Insight subscribers, many of whom work in top management positions around the globe. If you wish (and authorize us to do so) your company’s name may be included in these publications.

What is the timeframe for the project?

Our goal is to complete data collection by the end of January 2009 and report the findings of the study in March 2009.

How to participate?

Please, send an email to Evgeny Kaganer at ekaganer@iese.edu