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Strategy and Vendor Selection in IT Outsourcing: Is There a Method in the Madness?

In: GLOBAL SOURCING OF SERVICES Strategies, Issues and Challenges

Author

Listed:
  • Dev K. Dutta
  • Kholekile L. Gwebu
  • Jing Wang

Abstract

Both outsourcing strategy and choice of vendors have the potential to influence the success of information technology outsourcing (ITO) initiatives. However, the ways in which these factors combine leading to success in outsourcing has not received much attention in prior research. Accordingly, this study explores the patterns of ITO strategy and vendor selection adopted by outsourcing firms having high internal IT capabilities versus those with low internal IT capabilities. Our exploratory analysis on a sample of over 200 firms reveals that maintaining strong internal IT capabilities is a defining factor for outsourcing firms when selecting an appropriate mix of ITO strategies and vendors. These findings have important implications for firms new to ITO and also those that have not realized the full benefits of ITO.

Suggested Citation

  • Dev K. Dutta & Kholekile L. Gwebu & Jing Wang, 2017. "Strategy and Vendor Selection in IT Outsourcing: Is There a Method in the Madness?," World Scientific Book Chapters, in: Shailendra C Jain Palvia & Prashant Palvia (ed.), GLOBAL SOURCING OF SERVICES Strategies, Issues and Challenges, chapter 12, pages 451-477, World Scientific Publishing Co. Pte. Ltd..
    • Handle: RePEc:wsi:wschap:9789813109315_0012
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    Cited by:

    1. Fouad Amiri & Sietse Overbeek & Gerard Wagenaar & Christoph Johann Stettina, 2021. "Reconciling agile frameworks with IT sourcing through an IT sourcing dimensions map and structured decision-making," Information Systems and e-Business Management, Springer, vol. 19(4), pages 1113-1142, December.

    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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