Critical Issues of IT Outsourcing Vendors in India

Abstract

Global outsourcing of IT and IT-enabled services (ITES) has now become an accepted corporate strategy of a vast majority of firms around the world. The functions being offshored have increased in scope and magnitude and have climbed the value chain ladder. However, the literature has overwhelmingly focused on client-centric issues to the neglect of vendor concerns. There is a rich tradition of ranking critical issues confronting Information Systems executives, and some studies have even explored critical issues of outsourcing clients. These rankings have significant implications for both researchers and practitioners. Our study focuses on the nascent area of IT outsourcing vendors. We examine the issues from the standpoint of IT outsourcing vendors in India, currently the primary destination for IT offshoring. The results suggest that for the Indian vendors, the most critical issues are not related to cultural, language, and time-zone differences as suggested in many writings. Rather, the most critical concerns are issues dealing with work arrangements and relationships with the client, and issues related to the client's organizational readiness for offshoring. Clearly the understanding of such issues is important to the vendors, but also to the clients in order to maintain an effective dyadic relationship.

Information Systems Outsourcing

“…There has been significant research published on factors or issues that are likely to impact on the success of offshore IT service arrangements (see for example Winkler et al 2006;Rottman and Lacity 2009;Wiener et al 2010;Palvia et al 2011). We explore our case study using two published frameworks Winkler et al (2009) and Palvia et al (2011).…”

“…As highlighted by both Palvia et al (2011) and Winkler et al (2009), strong leadership and top management support is critically important and is needed within both the client and vendor organisation. Client relationships Palvia et al (2011) argue is the most important criteria for success in offshoring from a vendor perspective.…”

“…The research of Palvia et al (2011) found that vendors saw readiness and commitment to outsourcing as important for overall success of outsourcing arrangements. The research of Palvia et al (2011) found that vendors saw readiness and commitment to outsourcing as important for overall success of outsourcing arrangements.…”

“…explored with managers, risk factors in IT off shoring, their research identified 25 risk factors which were ranked Palvia et al (2011). investigated what they call ''critical issues'' from the perspective of Indian Information Systems vendors and identified 21 critical issues associated with IT offshoring.…”

“…investigated what they call ''critical issues'' from the perspective of Indian Information Systems vendors and identified 21 critical issues associated with IT offshoring. This commitment includes the support from and involvement in the decision making process by both business and IT executives(Winkler et al 2006;Iacovou and Nakatsu 2008;Willcocks 2010;Beulen et al 2011;Palvia et al 2011;Valorinta 2011;Zimmermann 2011). They identified three project management challenges and four factors they called ''Determinants for ISO (Project) Performance/Success''.…”