Capabilities in Managing Offshore IT Outsourcing Challenges and the Influence on Outsourcing Success from the IT Vendor Perspective
An IT vendor requires excellent capabilities to achieve success in offshore IT (information technology) outsourcing. This study aims to contribute to IT outsourcing research by identifying IT vendor capabilities from the perspective of offshore IT outsourcing challenges. A model is proposed that...
| Main Authors: | , , , |
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| Format: | Article |
| Language: | English |
| Published: |
Universitas Indonesia
2019-07-01
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| Series: | International Journal of Technology |
| Subjects: | |
| Online Access: | http://ijtech.eng.ui.ac.id/article/view/885 |
| _version_ | 1797970290184028160 |
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| author | Yogi Yusuf Wibisono Rajesri Govindaraju Dradjad Irianto Iman Sudirman |
| author_facet | Yogi Yusuf Wibisono Rajesri Govindaraju Dradjad Irianto Iman Sudirman |
| author_sort | Yogi Yusuf Wibisono |
| collection | DOAJ |
| description | An
IT vendor requires excellent capabilities to achieve success in offshore IT
(information technology) outsourcing. This study aims to contribute to IT
outsourcing research by identifying IT vendor capabilities from the perspective
of offshore IT outsourcing challenges. A model is proposed that explains the
relationship between capabilities in managing offshore IT outsourcing
challenges (i.e., interaction capability, management capability, and capability
to managing the distance involved) and the impact of these capabilities on
outsourcing success. The proposed model is empirically tested by Partial Least Squares
– Structural Equation Modelling (PLS-SEM) for validation, with 64 samples
obtained from a survey of Indonesian IT vendors with experience in conducting
offshore IT outsourcing projects. The results indicate that interaction
capability consisting of communication and coordination has a positive impact
on outsourcing success, and that this capability is in turn influenced by
management capability. This includes management support, talent management and
the ability to manage distances, in addition to cultural understanding and
managing the temporal distance. |
| first_indexed | 2024-04-11T03:15:36Z |
| format | Article |
| id | doaj.art-0cb92b7560f94effab22398e1daff653 |
| institution | Directory Open Access Journal |
| issn | 2086-9614 2087-2100 |
| language | English |
| last_indexed | 2024-04-11T03:15:36Z |
| publishDate | 2019-07-01 |
| publisher | Universitas Indonesia |
| record_format | Article |
| series | International Journal of Technology |
| spelling | doaj.art-0cb92b7560f94effab22398e1daff6532023-01-02T10:28:45ZengUniversitas IndonesiaInternational Journal of Technology2086-96142087-21002019-07-0110484185310.14716/ijtech.v10i4.885885Capabilities in Managing Offshore IT Outsourcing Challenges and the Influence on Outsourcing Success from the IT Vendor PerspectiveYogi Yusuf Wibisono0Rajesri Govindaraju1Dradjad Irianto2Iman Sudirman3Industrial Engineering Department, Bandung Institute of Technology, Jalan Ganesha 10 Bandung, 40116, IndonesiaIndustrial Engineering Department, Bandung Institute of Technology, Jalan Ganesha 10 Bandung, 40116, IndonesiaIndustrial Engineering Department, Bandung Institute of Technology, Jalan Ganesha 10 Bandung, 40116, IndonesiaIndustrial Engineering Department, Bandung Institute of Technology, Jalan Ganesha 10 Bandung, 40116, IndonesiaAn IT vendor requires excellent capabilities to achieve success in offshore IT (information technology) outsourcing. This study aims to contribute to IT outsourcing research by identifying IT vendor capabilities from the perspective of offshore IT outsourcing challenges. A model is proposed that explains the relationship between capabilities in managing offshore IT outsourcing challenges (i.e., interaction capability, management capability, and capability to managing the distance involved) and the impact of these capabilities on outsourcing success. The proposed model is empirically tested by Partial Least Squares – Structural Equation Modelling (PLS-SEM) for validation, with 64 samples obtained from a survey of Indonesian IT vendors with experience in conducting offshore IT outsourcing projects. The results indicate that interaction capability consisting of communication and coordination has a positive impact on outsourcing success, and that this capability is in turn influenced by management capability. This includes management support, talent management and the ability to manage distances, in addition to cultural understanding and managing the temporal distance. http://ijtech.eng.ui.ac.id/article/view/885Capability to manage distanceInteraction capabilityIT vendor capabilitiesManagement capabilityOutsourcing success |
| spellingShingle | Yogi Yusuf Wibisono Rajesri Govindaraju Dradjad Irianto Iman Sudirman Capabilities in Managing Offshore IT Outsourcing Challenges and the Influence on Outsourcing Success from the IT Vendor Perspective International Journal of Technology Capability to manage distance Interaction capability IT vendor capabilities Management capability Outsourcing success |
| title | Capabilities in Managing Offshore IT Outsourcing Challenges and the Influence on Outsourcing Success from the IT Vendor Perspective |
| title_full | Capabilities in Managing Offshore IT Outsourcing Challenges and the Influence on Outsourcing Success from the IT Vendor Perspective |
| title_fullStr | Capabilities in Managing Offshore IT Outsourcing Challenges and the Influence on Outsourcing Success from the IT Vendor Perspective |
| title_full_unstemmed | Capabilities in Managing Offshore IT Outsourcing Challenges and the Influence on Outsourcing Success from the IT Vendor Perspective |
| title_short | Capabilities in Managing Offshore IT Outsourcing Challenges and the Influence on Outsourcing Success from the IT Vendor Perspective |
| title_sort | capabilities in managing offshore it outsourcing challenges and the influence on outsourcing success from the it vendor perspective |
| topic | Capability to manage distance Interaction capability IT vendor capabilities Management capability Outsourcing success |
| url | http://ijtech.eng.ui.ac.id/article/view/885 |
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