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

In: GLOBAL SOURCING OF SERVICES Strategies, Issues and Challenges

Author

Listed:
  • 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 chapter 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, 2017. "A Research Framework for the Impact of Cultural Differences on IT Outsourcing," World Scientific Book Chapters, in: Shailendra C Jain Palvia & Prashant Palvia (ed.), GLOBAL SOURCING OF SERVICES Strategies, Issues and Challenges, chapter 2, pages 49-82, World Scientific Publishing Co. Pte. Ltd..
    • Handle: RePEc:wsi:wschap:9789813109315_0002
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    Citations

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    Cited by:

    1. Hung Nguyen & George Onofrei & Norma Harrison & Dothang Truong, 2020. "The influence of cultural compatibility and product complexity on manufacturing flexibility and financial performance," Operations Management Research, Springer, vol. 13(3), pages 171-184, December.
    2. John Effah & Ibrahim Osman Adam, 2022. "Examining Client-Vendor Relationship in the Outsourcing of a Work Environment Virtualisation: An Activity Theory Perspective," Information Systems Frontiers, Springer, vol. 24(5), pages 1585-1599, October.

    More about this item

    Keywords

    Outsourcing; ITO; BPO; KPO; Labor Arbitrage; Surrogate Motherhood; Insourcing; Offshoring; Onshoring; Cloud Sourcing; Crowd Sourcing; SaaS; Tele-Radiology; Joint Venture; Medical Tourism;
    All these keywords.

    JEL classification:

    • J20 - Labor and Demographic Economics - - Demand and Supply of Labor - - - General

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