A case analysis of business process outsourcing project failure profile and implementation problems in a large organisation of a developing nation

Abstract

As is the case for many developing economies, internationally published research on information systems (IS) practice in Kuwait is in short supply. The few reports of Kuwaiti IS/information technology (IT) practice highlighted in studies of Middle Eastern or Arab computing, have also largely discussed them in terms of these broader regional identities rather than their specific national context. Business process outsourcing (BPO) is becoming a widely‐accepted management practice throughout the world. In recent years, outsourcing of information services has become a pervasive phenomenon. Increasingly, organisations rely on external service providers for IS/IT services. Kuwait has been used as an example of a developing country where the data collection for this study was done there. This study employed case study methodology because the author was interested in answers for “how” and “why” questions and because the study was partly exploratory. The primary data on IS/IT outsourcing practices, obtained for the first time in Kuwait, were collected by means of semi‐structured interviews supported by organisational documentation. The case study discussed in this paper brought to the surface critical elements missing in the contract that led to the demise of the BPO project. Studying failure is preventive because it helps organisations reduce the probability of failure in the future. A central argument of this paper concerns the need to understand the complex cultural and political implications of outsourcing within a global context (perspectives), a policy that is becoming increasingly important. The case study findings are crucial as they provide a careful diagnosis of failed IT outsourcing project.

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