Leadership and Outsourcing

Paper Summary:

This paper explains that outsourcing, especially in the IT industry, is seen as a strategic move to improve an organization's profitability. Given this assumption, the author presents an extensive literature review investigating leadership requirements in real organizations and virtual organizations that use an outsourcing strategy. The paper defines the traits of leaders, compares requirements for leadership of virtual and real organizations, looks at the effect of culture and structure on the leadership role in outsourcing ventures, discusses cost benefits and budget and project management for outsourcing, reports on the
uncertainties leaders face when dealing with IT outsourcing and reviews issues of worker motivation, team working, and leadership in virtual organizations.

Table of Contents:
Introduction
Purpose of this Study
Hypothesis
Importance
Proposed Methodology
Limitations
Conclusion
Literature Review
Leadership Traits and Styles in Real Organizations and Effects of Physical Proximity
Leadership Traits Required for a Virtual Organization
Internal and external factors Impacting the Information Technology Industry
The Significance of Knowledge Management of the Workforce and Organization
Organizational Structures and Cultures in Real and Virtual Organizations
True Financial Impact of Outsourcing and the Hidden Costs of Outsourcing
The leadership Requirements for Planning An Outsourcing Venture and the Responsibilities to Existing Workforce
Culture and Synergy Needs of a Virtual Organization and their Impact on the Motivation of the Workforce
Virtual Teams and Management of Virtual Teams
Project Management in the Virtual Work and Communication Requirements

From the Paper:

"Presently organizations often use three different types of motivational methods with their employees. The first,'Satisfaction Theory' postulates that individuals find some form of pleasure or satisfaction during the process of completion of the tasks and are of the opinion that his or her ability to complete the task demonstrates their capability and expertise. The second method uses the 'Incentive Theory' where the worker is offered some form of incentive to encourage him or her to perform better. These incentives can be in a number of forms such as higher pay, promotions, etc."

Sample of Sources Used:

• Amble, B. (2007). Thinking hard about soft issues [Electronic Version]. Management-Issues Ltd. . Retrieved April 29 from http://www.management-issues.com/2007/3/29/research/thinking-hard-about-soft-issues.asp.
• Amiti, M., & Wei, S.-J. (2005). Fear of service outsourcing: is it justified? Economic Policy, 20(42), 308-347.
• Bell, B. S., & Kozlowski, S. W. J. (2002). A typology of virtual teams: Implications for effective leadership. Group & Organization Management, 27(1), 14-40.
• Brody, R. G., Miller, M. J., & Rolleri, M. J. (2004). Outsourcing Income Tax Returns to India: Legal, Ethical, and Professional Issues. The CPA Journal, 74(12), 12-15.
• Buller, P. F., Kohls, J. J., & Anderson, K. S. (2000). When Ethics Collide: Managing Conflicts across Cultures. Organizational Dynamics, 28(4), 52-66.

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