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The Outsourcing Of Creative Work And The Limits Of Capability: The Case Of The Philippines Animation Industry, Feichin Ted Tschang, Andrea Goldstein Feb 2010

The Outsourcing Of Creative Work And The Limits Of Capability: The Case Of The Philippines Animation Industry, Feichin Ted Tschang, Andrea Goldstein

Research Collection Lee Kong Chian School Of Business

The animation industry, like many information-technology-enabled services sectors, has been of interest to many developing countries interested in developing services outsourcing industries. We analyze the case of the Philippines' animation industry. This paper investigates the outsourcing process in animation and the nature of capabilities within that, with the goal of contributing to a more general understanding of services outsourcing. We examine the industry's history, interview data with industry participants, and secondary data. We find that strong labor force skills have been central to capabilities rather than organizational abilities. Outsourcing of production takes place only so far as the work is …


The Strategic Choice To Continue Outsourcing, Switch Vendors, Or Backsource: Do Switching Costs Matter?, Dwayne Whitten, Subrata Chakrabarty, Robin Wakefield Dec 2009

The Strategic Choice To Continue Outsourcing, Switch Vendors, Or Backsource: Do Switching Costs Matter?, Dwayne Whitten, Subrata Chakrabarty, Robin Wakefield

Subrata Chakrabarty

IT outsourcing contracts are often discontinued in favor of other alternatives (returning to in-house development, or switching to another vendor). Switching costs are experienced when terminating a business relationship and securing an alternative. We tried to answer the question: do switching costs matter significantly in the strategic choice to continue outsourcing, switch vendors, or backsource? Switching costs were considered, such as those due to IT operations (sunk investment, lost performance, system upgrades, uncertainty, and induction-retraining-performance), personnel-replacement costs (candidate search, and IT/setup), and in-house learning (cognitive/behavioral learning). A field survey was conducted, and, for each of these cost types, the differences …