Abstract
The key focus of this article is to provide an understanding about the complexities involved in global IT outsourcing and the management initiatives needed for the successful implementation of a global IT outsourcing partnership. Technological advances combined with increased globalization and competitive pressures have forced many firms to consider alternatives that will reduce organizational cost, and at the same time create and/or maintain their competitive advantage in the global market. Increasingly, the phenomenon of global outsourcing is being considered by many firms as a solution to their IT needs and problems. With increasing recognition and confidence in the programming competencies of IT workers in India and other countries, offshore outsourcing has gained increasing acceptance among U.S firms across all industries.Even though there has been a plethora of studies on domestic outsourcing of information systems, the research on outsourcing outside national borders (global outsourcing) has been scarce. One of the areas which lacks depth in the literature is in how to manage a global outsourcing partnership. Anecdotal evidence points to the fact that even the best outsourcing deals can go sour if not managed properly. In the context of global IT outsourcing, the management of the outsourcing relationship becomes even more complex because of the geographical distance and the difference in the national and organizational cultures of the client and vendor firms. This article identifies the key elements that should be considered while managing an outsourcing relationship with a foreign’ vendor and the role the manager should play in a global outsourcing context.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have