Knowledge Transfer in IT Service Provider Transition

Emilie de Morais

, Geovanni de Jesus

, Rejane Figueiredo

, Elaine Venson

and Rafael Queiroz

ITRAC - Information Technology Research and Application Center, Universidade de Brasília, Brasília, Brazil

TU Darmstadt, Main University, Darmstadt, Germany

Keywords: Knowledge Transfer, Service Provider Transition, Outsourcing, Public Organization.

Abstract: Although outsourcing Information Technology (IT) services brings benefits, it might cause loss of

knowledge and dependency of the contractor in relation to the service providers. When a transition occurs

between providers, knowledge sharing is essential for the contractor and to the new contracted. This paper

presents the proposal, execution and evaluation of a knowledge transfer process to the transition phase of a

contract. A case study was conducted in a Brazilian Federal Government Organization during a contractual

transition. Data collected from two projects allowed the evaluation of the proposed process. It was observed

that the training activities performed, and the granting of access to process information and to the services to

be transferred were essential to an effective knowledge transfer. Although this work is a study of a single

case, it was observed that the process could be generalized to service provider transitions involving

contracting organizations of IT services.

1 INTRODUCTION

Strategies to outsource IT services are on the

increase in today's organizations. However, the loss

of knowledge for clients has been reported as a

recurring problem that may lead to their depending

on the parties contracted and to issues in the

transition between service providers.

The end of a contract and the start of another, a

process known as contractual transition, is a critical

moment as it is in such a period that knowledge has

to be finally transferred to the contracting party, and

also be handed to the new contracted party to

provide services (Grim-Yefsah et al., 2011).

Knowledge transfer during the contract

minimizes the dependence between the contracting

and contracted parties and it is an important factor

for success in the contracting effort (Blumenberg et

al., 2009). The eSourcing Capability Model for

Client Organizations (eSCM-CL) supports the

client-contractor relation. The model has a

contracting life-cycle and provides a set of practices

for knowledge transfer to boost the consistency and

the quality of the work done by the parties (Hefley

and Loesche, 2006).

Samsudin et al. (2012) point that government

bodies are not prepared for the end of a contract.

Considering the difficulty that the contracting parties

have in a contractual transition (Urbach and Würz,

2012), the planning, the monitoring, and the support

of knowledge transmitter are essential items for an

effective transfer in this period (Samsudin et al.,

2012; Deng and Mao, 2012).

For Brazilian Government organizations, the

outsourcing of IT services is established by the law

(Brazil, 2012) and supplemented by the Normative

Instruction no. 04 of September 11th, 2014 (IN

04/2014). One of the goals is to avoid the loss of

knowledge, with practices for knowledge transfer

between the contractor and the contracting party

through all the contract cycle, and especially at its

end(Brazil, 2012).

In this context, and given the stages of the life

cycle in outsourcing of software development

services, the research question was how to define a

process for knowledge transfer in a contractual

transition involving software development services?

The goal of this work was to propose a process to

transfer knowledge at the time of a transition

between software development service providers. A

case study was conducted to analyze the execution

and refinement of the process at hand in a Brazilian

Government body, herein named Ministry.

This work is structured into six sections. Section

426

Morais, E., Jesus, G., Figueiredo, R., Venson, E. and Queiroz, R.

Knowledge Transfer in IT Service Provider Transition.

DOI: 10.5220/0006335104260433

In Proceedings of the 19th International Conference on Enterprise Information Systems (ICEIS 2017) - Volume 2, pages 426-433

ISBN: 978-989-758-248-6

2 presents the eSCM model with emphasis on its

practices and some works of research that entails

knowledge transfer in a service provider transition.

Section 3 presents the materials and methods used in

this work. Section 4 provides the methodological

plan. Section 5 presents the execution of Stage 1 –

Process Definition and Section 6 presents Stage 2 –

Case Study. Section 7 provides an analysis of the

results. After that we present our Conclusions.

2 KNOWLEDGE TRANSFER IN

IT SERVICE PROVIDER

TRANSITION

The eSCM-CL is a model of capability whose focus

lies on the predictability of the process and its

results. The model is divided into three dimensions:

Sourcing Life-Cycle, Capability Areas, and

Capability Levels. The Sourcing Life Cycle

dimension is split into Ongoing (containing practices

that cover all the cycle) and the Analysis, Initiation,

Delivery and Completion stages.

Given the scope of the model as related to the

life cycle of a service contracted, issues such as

knowledge management and transfer of resources

and knowledge are practices dealt with in the model.

The practices of Service Transfer area are performed

on the Initiation stage. The practices of Service

Completion area are performed on Delivery and

Completion stages. On Ongoing are performed the

practices of Knowledge Management area.

The areas of Knowledge Management (KNW),

Service Transfer (TFR), and Service Completion

(CMP) were identified as having practices that

involve knowledge transfer and contractual

transition. The following practices were selected in

this work:KNW01 Provide Required Information;

KNW02 Knowledge System; KNW04 Lessons

Learned; KNW05 Share Knowledge; TFR01 Service

Transition; TFR03 Resources Transferred Out;

TFR04 Personnel Transferred Out; TFR05

Knowledge Transferred Out; CMP 03 Resources

Transfer from Service Provider; CMP 05

Knowledge Transfer from Service Provider.

The Analysis stage deals with internal actions of

the contracting party to evaluate one's needs to

contract. No practices were found in this stage for

the context of this work. In this sense Grim-Yefsah

et al. (2011) present a set of activities that are carried

out at this point. The inventorying of internal and

external documents, as well as the code done is in

the Third Party Maintenance activity. The

Knowledge Transfer process between the service

providers is an activity that includes the transfer of

documents, applications and code. In the

Maintenance in Cooperation activity, the two service

providers execute the maintenance of a system and,

in the last activity, the final transfer of the

responsibilities to the new service provider takes

place.

In these activities Grim-Yefsah et al. (2011)

identified good practices. The first one entails

meetings between the service providers (the old one

and the new one) with the participation of the client,

to allow a presentation of the artifacts and the

knowledge transfer on the project. The authors also

consider cooperative maintenance as a good

practice, where the two service providers work in

tandem on the joint maintenance of some

application.

Alaranta and Jarvenpaa (2010) present

facilitating elements for knowledge transfer in

transition periods, such as modularization, reuse of

‘outside’ expertise, joint collaboration e personal

identities at work.

3 MATERIALS AND METHODS

This section presents the materials and methods used

in this work. The research is descriptive as it aims at

identifying, recording and analyzing characteristics

that relate to the situation or phenomenon. As

regards the technical procedures, we used

bibliographical and document research, as well as

the application of a case study, given that the goal

was to produce knowledge based on a practical and

unique case.

The methodology had two stages: Stage 1 -

Process Definition, and Stage 2 – Case Study.

3.1 Stage 1 - Process Definition

In stage 1, a bibliography review was performed to

search for elements and practices of knowledge

transfer in service provider transition processes.

Documents of the client organization were also

analyzed to characterize the object of study, as

regards service provider transition. After that, semi-

structured interviews were conducted with the goal

of understanding how the transitions in previous

contracts had occurred and what were the

perspectives and preparations to the new transition.

Based on the bibliography and document review

performed, a new process for Knowledge Transfer

was proposed to the Ministry.

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427

3.2 Stage 2 - Case Study

From the Knowledge Transfer process defined in

Stage 1, the case study technique was applied to

analyze the execution, evaluation and the refining of

the process proposed to the body. The case study

was conducted in five steps, as suggested by

Runeson et al. (2012): 1)Project for a case study:

definition of goals and planning the case study;2)

Preparation for data collection: defining procedures

and protocols for data collection; 3) Evidence

collection: carrying out of data collection procedures

on the case study; 4) Analysis of the data collected:

The analysis procedures were applied to the data;

and 5) Report: the study and its conclusions were

packaged in a format appropriate for its relaying.

3.2.1 Case Study Project

A Brazilian Government body that would go through

a process of contractual transition was chosen. At

this point, we defined the goals and the planning for

the case study, as well as the research question.

3.2.2 Preparation for Data Collection

At this point, the case study was characterized and a

plan was produced for the data collection.

Characterization of the Object of Study: the

object, named in this study as Ministry, is a Brazilian

Government body. The IT area consists of 4

coordination offices. The IT Coordination has a

Division of Systems Development (DSYD)

responsible for managing software service providers.

Brazilian law provides that civil servants should

carry out all management activities. The Ministry’s

IT area has a small number of civil servants, which

hampers the transfer of knowledge, making the

scenario critical for a service provider transition. In

the service provider transition period that lasted

from December 2016 to February 2017, the IT

Coordination area had 3 staff: One head and two

analysts.

The contract then in force had implemented two

providers who worked with: software and service

providing and quality support services. For the new

contract another service provider was planned and

contracted: technology support.

The definition, execution and evaluation of the

transfer process was carried out during the

contractual transition period, with an emphasis on an

agile software development process (MASDD)

(Souza Sobrinho et al., 2015).

MASDD is a process consisting of six sub-

processes in which activities, roles, and artifacts

were defined, aligned with agile practices and with

elements of knowledge transfer ((Brito et al., 2017)).

The roles involved in the process entail all the

aforementioned service providers and the Ministry’s

civil servants. There are the roles of Project Leader

(IT Analyst) and the Product Owner (PO) who is the

demanding party in the project.

Preparation of the Data Collection Plan: to

analyze the results produced by the proposed

process, we used the Goal-Question-Metric (GQM)

approach as put forward by Basili and Weiss

(1983).Table 1presents the resultant GQM.

Table 1: Resultant GQM (Source: Authors).

Goal Question Metric

Understand the

efficacy of

knowledge

transfer

activities during

the service

provider

transition

What is the

productive

capability of

the new

provider?

Ready Rate

Sub-process

duration

Reuse of

specialists

What is the

efficacy of the

transfer

activities as

done?

Adherence to the

process

Training-

execution ratio

Doubts

Understand the

perception of

those involved

in the

knowledge

transfer

activities in the

service provider

transition

What is the

perception of

those involved

in the

transition, on

the transfer

activities done?

Level of

satisfaction of the

new provider

about the training

Perception of all

involved on the

knowledge

transfer process

The data on productive capability is of a

quantitative nature that allows assessing how the

process of knowledge transfer helped with the

fulfillment of deadlines and delivery dates of

projects. We defined the Adherence to the Process

metric to find how much of the project executed

(hence transferred) complies with the process

proposed. The percentage of people that are

executing the process, as well as of those who took

at least one of the training courses proposed and

those who are executing the process is calculated in

the training-execution ratio.

According to Argote and Fahrenkopf (2016),

measuring the transfer of knowledge is a challenging

task and the approaches most used are questions and

observations of the data collected during the

ICEIS 2017 - 19th International Conference on Enterprise Information Systems

428

knowledge transfer experience. In this work, the

techniques adopted included semi-structured

interviews, questionnaires, and observation.

3.2.3 Evidence Collection

In the collection stage, the metrics of the first goal of

GQM were gathered through archival data and

observations. In order to obtain a general view of the

case studied and boost the level of precision, more

than one observer was assigned to the task, as

suggested by Runeson et al. (2012).

A questionnaire on satisfaction, previously

defined in Stage 2, was applied during the training

period. The questionnaire consisted in a set of

aspects related to the Training, Instructor and a

general evaluation. Each aspect was evaluated as

Weak, Regular, Good or Excellent. At the end of the

process of knowledge transfer, the semi-structured

interview was performed with the transcription of

the answers into a document.

3.2.4 Analysis and Report of Collected Data

The objective data gathered from the archival data

was blended with the observations made during the

execution of the project in the analysis stage, and

then related to the questions and objectives defined

in the GQM. The answers obtained in the

questionnaire were presented in graphs to allow the

visualization of the results, with their categorization

according to the activities proposed in the

knowledge transfer process.

Based on the data analysis, a report was

generated with the results of the evaluation and

suggestions for the knowledge transfer process

improvement. The sections below present the

execution and the data collection efforts.

4 STAGE 1 - PROCESS

DEFINITION

Based on bibliography and documentary reviews

performed, a knowledge transfer process for the

provider’s transition stage was defined for the body

under study.

The Ministry’s contracts were analyzed. For the

outgoing service provider contract, the transition

plan was optional and the activities of knowledge

transfer were not planned. In the new contract, the

transition plan was mandatory and an overlapping

period is provided to support the service provider-to-

be.

In trying to acknowledge the scenario of a

transition period, we conducted interviews with the

Head of the DSYD, the Head of the Office Project,

and the Management Support Rep. These procedures

enabled us to gather a set of practices: Collecting

lessons learned from the outgoing service provider;

Refining existing processes (from the experience of

the outgoing service provider). Collecting feedback

on possible refinements to the processes);Holding

meetings amongst the service providers with the

mediation of the body; Preparing the infrastructure

for the incoming service provider; Collecting

transfer data to support the drafting of the next

contract.

Based on the analysis of the documents and on

the interviews, a Process for Knowledge Transfer

was put forward for the service provider transition

stage. The process proposed entails the stages of

Completion and Initiation. Three roles were planned

for process execution: the contracting organization,

the outgoing service provider, and the incoming

service provider.

In the process proposed, there is a period

between the two stages, as planned for an

overlapping of the service providers, where the old

and the new service provider should interact,

remotely and in person, to share information. The

process proposed is shown in Figure 1.

The audit work is an internal process of the body.

This process is aimed at ensuring that the final

version of the products and their documentation get

delivered, that the software developed throughout

the contract have been catalogued, that the final

transfer of knowledge did take place, and that all the

resources and accesses have been revoked, as

provided in (Brazil, 2014).

In the Initiation stage, the Insertion Plan artifact

should be prepared pursuant to Brazilian legislation,

(IN 04/2014). The plan deals with the planning at

the start of the contract, with a meeting held at its

beginning and followed by the preparation of the

infrastructure to support the incoming service

provider.

The organization should have a guide of good

practices to undertake such qualification program by

the body, the Guide - Training Model. According to

guide and to the two references used for the activity,

the body should provide an environment for the

provider to access the information needed. A

definition should be produced in the process on the

structuring and use of a remote learning (EAD)

environment as well as a Wiki to make the process

available, as recommended by Marques-Lucena et

al.(2015).

Knowledge Transfer in IT Service Provider Transition

429

Figure 1: Knowledge Transfer Process in Service provider Transition (Source: Authors).

Table 2: Process activities (Source: Authors).

Activity Goal Base Used

Transfer knowledge

to organization

Outgoing service provider should transfer knowledge

during the contract to the organization, following the

body's Transition Plan.

• IN 04/2014

• CMP05: Knowledge Transfer from Service

Provider

• Activities: Responsibilities in the Transfer, Editing,

and Validation of a Transfer Plan (Grim-Yefsah et al., 2011)

Provide feedback Outgoing service provider should provide feedback

about the process.

• Interviews

Auditing The organization should audit the services provided

by the outgoing service provider.

• IN 04/2014

• Responsibilities in the Transfer Activity (Grim-

Yefsah et al., 2011)

Refine Processes Organization should refine the current processes

before transferring them to the incoming service

provider.

• Interviews

Remove access and

resources

Organization should remove the given resources and

accesses from the outgoing service provider.

• IN 04/2014

• CMP03: Transfer of Resources from Service

Provider

Prepare Infrastructure Organization should plan and prepare the

infrastructure that will be used by the new provider.

• KNW02 Provide Required Information

• IN 04/2014

Perform Contract's

Initial Meeting

Organization should establish the services that will be

provided and introduce the parties involved.

• KNW02 Provide Required Information

• KNW02: Knowledge System

• KNW05: Share Knowledge

Perform Trainings Organization should introduce and transfer

knowledge on the processes to incoming service

provider.

• KNW01: Provide Required Information

• KNW02: Knowledge System

Monitor Knowledge

Transfer

Organization should monitor execution of the

processes at the start of the contract to ascertain the

efficacy of the transfer.

• KNW04: Lessons learned

Collaborate with

Incoming Service

Provider

Organization should seek to answer eventual queries

on the processes, projects and systems with the

incoming service provider.

• KNW05: Share Knowledge

• Organize personal meetings and Knowledge

Transfer activities (Grim-Yefsah et al., 2011)

• Joint Collaboration (Alaranta and Jarvenpaa, 2010)

Execute Processes Incoming service provider should start service

provision as provided for in contract.

• -

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5 STAGE 2 – CASE STUDY

From the Knowledge Transfer process for service

provider transition defined, we used a case study

technique to analyze the execution, evaluation and

the refining of the process proposed to the body, our

object of study.

5.1 Completion

As there was no provision for a transition plan, there

was no prior plan for the final transfer. However, the

service provider delivered the final versions of the

products and their associated documentation. This

delivery was verified in their auditing process. Apart

from that, the body revoked all access privileges.

At the end of the contract the service provider

identified points for improvement in the MASDD

process which, along with monitoring of pilot-

projects (Sousa et al., 2016), allowed the refining of

the MASDD with the goal of preparing it for the

new service provider.

5.2 Initiation

With the new contract in force, the infrastructure

support area took some time to grant access profiles

for the new service provider. These profiles allow

the access to documentation and to training

resources. After that a start-of-contract meeting was

held that covered aspects such as service orders,

contract penalties, and existing processes within the

body.

5.2.1 Training Execution

The training program was proposed in modules that

were made available on the Distance Learning

platform and provided in a classroom environment.

The classroom sessions were done in two days

due to time constraints of the service providers.

Slides were used in the presentations related to the

contents. A practice work approach was used in

order to present the requirements management tool.

There were 14 attendants on the first day and 6 on

the second.

With the intent of evaluating the quality and

efficiency of the training program, a questionnaire

was applied to capture the perception of the parties

involved on the process of knowledge transfer.

5.2.2 Collaboration with the New Service

Provider

The collaboration of the former service provider

with the incoming one might take place via

meetings, information transfer or even an effort on

joint development / maintenance. No provision was

made in the then-in-force contract for an overlapping

period.

5.2.3 MASDD Process Execution

Work to monitor the transfer of knowledge was done

during the execution of the process, via the

participation in process activities, as observers, and

through the archival data. A project was under way

during the contractual transition period, having been

developed, namely Project 1. A meeting was then

held to enable the transfer of this project, with the

business analyst of the software factory, to present

what the project was about and its history.

The knowledge transfer was monitored in this

project and in a new one, named in this effort as

Project 2. Both projects were executed

simultaneously. During the first Release, the metrics

were collected for both of them.

The results of Project 1 were: training-execution

ratio: 100%, adherence 99,78%, rate of ready (1

Sprint 40%; 2

Sprint: 83%; 3

Sprint 100 %),

Duration of the sub-processes: 129 days. The results

of Project 2 were: training-execution ratio: 50%,

adherence 92,55%, rate of ready (1

Sprint 75%; 2

Sprint: 71,43%; 3

Sprint 100 %), Duration of the

sub-processes: 132 days.

The doubts that have appeared were related to

the storage of the artifacts and the evidences criteria

of the tests.

Semi-structured interviews were made with those

involved in the process, such as: Project Leader,

New Software Factory Rep, Tech Support Rep on

Quality, and Management Support, to try and

discover their points-of-view on the execution of the

MASDD and on the knowledge transfer. The

answers obtained were transcribed and analyzed.

6 DATA ANALYSIS

At the start of the contract it was observed that the

start-of-contract meeting was essential. The

preparation of the infrastructure, despite the fact it

was not adequately done, it did not affect the case

under study, as the projects took some time to roll.

That does not invalidate the need for this activity.

Knowledge Transfer in IT Service Provider Transition

431

In the case of the training program, the

evaluation done during the activity showed that, for

most of the respondents, the classroom training

sessions were evaluated as Good or Excellent on

both days. On the first day, from a total of 14

people, 8 people rated it as Good, 4 as Excellent, and

2 as Regular. On the second day, from a total of 6

people, 4 evaluated it as Good and 2 evaluated it as

Excellent.

In the execution of the MASDD process, no

representative of the new service providers had

worked with the new process yet and, as a result, all

the reps selected took the training course. As regards

the training-execution ratio, Project 2 scored 50%, as

the PO and a developer did not attend the training

sessions. The non-availability of the PO led this

project to a smaller adherence to the process.

The ready rate was lower in the first iterations.

Problems were identified with the architecture used,

but no issues were found as related to the knowledge

transfer. The doubts that were brought up were after

all related to aspects that were not made clear in the

documentation or in the training sessions. This way

it was possible to identify improvements in the

MASDD process.

The product verification was longer than

anticipated in both projects, 30 and 18 days,

respectively, as two failures occurred. We concluded

that a lack of expertise of the supplier as to how the

product would be evaluated produced such failures.

The body has guides for quality checking and the

contractor was unaware of them. Therefore, a

reference to these guides was added to the process.

At the end of the execution of the knowledge

transfer process, the answers from the interviews

done were ranked into categories such as: access to

information and efficacy in knowledge transfer. As

regards the access to information, the respondents

indicated the approach they considered the most

efficient to learn about the process and to clear

eventual queries. Diverging opinions were found

between the distance training, classroom training

and the documentation. They also pointed that the

representatives of the body and the documentation

were enough to clear the doubts then produced.

In the answers related to the efficacy of the

knowledge transfer, we found that some gaps in the

definitions of the MASDD affected the knowledge

transfer, as shown below:

'Artifacts not related to the MASDD (but to the

project) are still 'lying about''. A lack was

observed of a general view of what is necessary

to deliver (of the process as a whole, in the

MASDD and outside the MASDD).’

'I believe there are complications related to what

to do. I have seen acceptance tests get similar to

the steps of a use case. I saw that the manual has

insufficient information and other flaws in

documentation. Although this is not about the

process, but about the products and their quality

levels. '

Despite all of these gaps, all those interviewed

said that the activities for knowledge transfer, as

proposed, would allow an understanding and the

execution of the MASDD process.

With the obtained results, the following lessons

learned were identified.

• Infrastructure preparation is essential to

provide knowledge artifacts.

• Good relationship with the outgoing service

provider can facilitate the process.

• Care should be exercised in the preparation

of the process documentation and of the

training sessions to prevent an adverse

effect on the execution of the services.

7 CONCLUSIONS

The service provider transition process in

organizations is a critical period as a loss of

knowledge can occur. In order to avoid it, it is

essential that the knowledge transfer process in this

period is planned and monitored.

This work describes a proposal, the execution

and evaluation of a knowledge transfer process for a

contractual transition, as witnessed in a Brazilian

Government body. The process was based on related

study practices of the eSCM-CL model and on

Brazilian Law.

In the transition that occurred in the body of our

study, the data collected from two projects allowed

us to evaluate the process proposed. Considering the

gaps found in the MASDD process during its

execution, we found that the preparation of the

training program and the granting of access to

process data and the services to be transferred are

essential elements for a successful knowledge

transfer process.

At the end of the transition period it was found

that the process proposed was effective and helped

in the transfer of knowledge.

This work is a study of a single case but it is

possible to observe that the process can be

generalized to service provider transitions involving

contracting organizations of IT services.

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432

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