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A Research Framework for the Impact of Cultural Differences on IT Outsourcing

Author

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  • Anil Gurung
  • Edmund Prater

Abstract

Contracting Global Virtual Teams as part of global IT outsourcing is currently en vogue. As might be expected when virtual team members are from different countries, cultural factors play an important role in the success of outsourcing. However, there have been very few studies that assess the effect of culture on IT outsourcing and virtual teams. This conceptual paper addresses this oversight by looking at the effect of cultural differences on IT outsourcing and virtual teams' performance. The applicable literature on outsourcing, virtual teams and culture is analyzed and a framework of offshore outsourcing success is developed. This framework includes the concept of psychic distance to better understand the phenomenon of virtual teams and outsourcing success. Adding this as a key research component provides a more realistic way of researching global virtual teams. Future directions for research based on the developed framework are also provided. By assessing the cultural differences of virtual teams in IT outsourcing, our research framework will help academics pursue this growing business phenomenon.

Suggested Citation

  • Anil Gurung & Edmund Prater, 2006. "A Research Framework for the Impact of Cultural Differences on IT Outsourcing," Journal of Global Information Technology Management, Taylor & Francis Journals, vol. 9(1), pages 24-43, January.
    • Handle: RePEc:taf:ugitxx:v:9:y:2006:i:1:p:24-43
    DOI: 10.1080/1097198X.2006.10856413
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    Citations

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    Cited by:

    1. Carine Peeters & Patricia Garcia-Prieto Sol & Sébastien Point, 2009. "Building the business case for diversity in offshoring," Working Papers CEB 09-007.RS, ULB -- Universite Libre de Bruxelles.
    2. Abdulla Abdulaziz Al-Subaie & Mohd. Nishat Faisal & Belaid Aouni & Faisal Talib, 2021. "A Strategic Framework for Transformational Leadership Development in Megaprojects," Sustainability, MDPI, vol. 13(6), pages 1-21, March.
    3. Jalal El Fadil & Josée St-Pierre, 2023. "Identifying and Managing Risks Inherent to Cultural Differences in the Case of Production Internationalization," Business & Entrepreneurship Journal, SCIENPRESS Ltd, vol. 12(2), pages 1-1.
    4. Querubin S. Yap & Jon K. Webber, 2015. "Developing Corporate Culture In A Training Department: A Qualitative Case Study Of Internal And Outsourced Staff," Review of Business and Finance Studies, The Institute for Business and Finance Research, vol. 6(1), pages 43-56.
    5. Schoenherr, Tobias & Narayanan, Sriram & Narasimhan, Ram, 2015. "Trust formation in outsourcing relationships: A social exchange theoretic perspective," International Journal of Production Economics, Elsevier, vol. 169(C), pages 401-412.
    6. Hasliza Abdul-Halim & Elaine Ee & T. Ramayah & Noor Hazlina Ahmad, 2014. "Human Resource Outsourcing Success," SAGE Open, , vol. 4(3), pages 21582440145, July.
    7. Woszczynski, Amy B. & Dembla, Pamila & Zafar, Humayun, 2016. "Gender-based differences in culture in the Indian IT workplace," International Journal of Information Management, Elsevier, vol. 36(4), pages 507-519.
    8. Kedia, Ben L. & Lahiri, Somnath, 2007. "International outsourcing of services: A partnership model," Journal of International Management, Elsevier, vol. 13(1), pages 22-37, March.
    9. Benoit Aubert & Suzanne Rivard & Mathieu Templier, 2009. "The Impact of Distance on Offshore Business Relationships," CIRANO Working Papers 2009s-05, CIRANO.

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