The Challenge of Global Selective Outsourcing Environment: Implementing Customer-Centric IT Service Operations and ITIL Processes

Abstract

Presently, internal Information Technology (IT) organizations make strategic level decisions to explore new capabilities and solutions from outsourcing markets to fulfill various business and customer expectations. However, far too little is known about the operational level challenges that emerge between IT service purchasing companies and suppliers in a global selective outsourcing environment. In this research, we focus on analyzing the operational level challenges and nonconformances from the IT service purchasing company’s point-of-view. Nokia’s IT unit selectively outsourced parts of its operational level IT service activities to the supplier. The IT unit and the supplier jointly implemented Information Technology Infrastructure Library (ITIL) processes, globally. The cooperation was not completely trouble-free. It was identified that ITIL processes can provide standardized structures for executing the IT service activities, but quality and customer-centric operation will also require active and participative management and leadership, efficient communication and information sharing, globally implemented quality management practices, and clear responsibility and ownership structures between the parties. These findings improve operational level selective outsourcing knowledge, and the findings can be exploited by other global IT service transition projects.