Moving Toward an Integrated Framework of Offshore Information Technology Outsourcing Success

Abstract

ABSTRACTOffshore information technology outsourcing is a popular strategic choice for businesses today. Firms are increasingly outsourcing their complex information technology-based projects, business processes, and services to offshore locations to achieve competitive advantage. Traditionally, offshore information technology outsourcing was a means to reduce costs and/or increase efficiencies by focusing on core activities. Recently, the emphasis has shifted to pursuing it as a strategy for cooperative advantage through resource sharing and building long-term relationships with the offshore partners. However, many such offshore outsourcing relationships fail due to a lack of understanding and proper operationalization of the critical success factors that influence global client–vendor partnerships. In the current study, the authors draw upon existing literature to identify popular theoretical perspectives and key operational, environmental, and relational factors influencing the success of offshore information technology outsourcing relationship. A framework of offshore information technology outsourcing success is then developed by integrating these theoretical perspectives and critical success factors. Exploratory data suggests that the proposed framework is valid for understanding offshore information technology outsourcing success and has important implications for theory and practice.