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Capabilities in managing offshore it outsourcing challenges and the influence on outsourcing success from the it vendor perspective
Wibisono Y.Y.a, Govindaraju R.a, Irianto D.a, Sudirman I.a
a Industrial Engineering Department, Bandung Institute of Technology, Bandung, 40116, Indonesia
[vc_row][vc_column][vc_row_inner][vc_column_inner][vc_separator css=”.vc_custom_1624529070653{padding-top: 30px !important;padding-bottom: 30px !important;}”][/vc_column_inner][/vc_row_inner][vc_row_inner layout=”boxed”][vc_column_inner width=”3/4″ css=”.vc_custom_1624695412187{border-right-width: 1px !important;border-right-color: #dddddd !important;border-right-style: solid !important;border-radius: 1px !important;}”][vc_empty_space][megatron_heading title=”Abstract” size=”size-sm” text_align=”text-left”][vc_column_text]© IJTech 2019.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.[/vc_column_text][vc_empty_space][vc_separator css=”.vc_custom_1624528584150{padding-top: 25px !important;padding-bottom: 25px !important;}”][vc_empty_space][megatron_heading title=”Author keywords” size=”size-sm” text_align=”text-left”][vc_column_text][/vc_column_text][vc_empty_space][vc_separator css=”.vc_custom_1624528584150{padding-top: 25px !important;padding-bottom: 25px !important;}”][vc_empty_space][megatron_heading title=”Indexed keywords” size=”size-sm” text_align=”text-left”][vc_column_text]Capability to manage distance,Interaction capability,IT vendor capabilities,Management capability,Outsourcing success[/vc_column_text][vc_empty_space][vc_separator css=”.vc_custom_1624528584150{padding-top: 25px !important;padding-bottom: 25px !important;}”][vc_empty_space][megatron_heading title=”Funding details” size=”size-sm” text_align=”text-left”][vc_column_text]The authors wish to thank Direktorat Riset dan Pengabdian Masyarakat Direktorat Jenderal Penguatan Riset dan Pengembangan Kementerian Riset, Teknologi, dan Pendidikan Tinggi, who funded this research through Hibah Disertasi Doktor No.1598/K4/KM/2017.[/vc_column_text][vc_empty_space][vc_separator css=”.vc_custom_1624528584150{padding-top: 25px !important;padding-bottom: 25px !important;}”][vc_empty_space][megatron_heading title=”DOI” size=”size-sm” text_align=”text-left”][vc_column_text]https://doi.org/10.14716/ijtech.v10i4.885[/vc_column_text][/vc_column_inner][vc_column_inner width=”1/4″][vc_column_text]Widget Plumx[/vc_column_text][/vc_column_inner][/vc_row_inner][/vc_column][/vc_row][vc_row][vc_column][vc_separator css=”.vc_custom_1624528584150{padding-top: 25px !important;padding-bottom: 25px !important;}”][/vc_column][/vc_row]