Information technology acquisition in the service sector

Abstract

The objective of this research paper is to present and examine a conceptual model that helps realise the complexities of offshore outsourcing IT knowledge and service work. The model offers a simple yet potent way to recognise the intrinsic challenges that such strategies involve. The model compares well-established work in the manufacturing literature to present a sequential view of building organisational capability in offshore outsourcing in the IT service sector. The authors examined offshore sourcing decisions at three organisations through interviews with senior business executives in IT start-ups. A set of frameworks were developed to clarify sourcing options and aid managers in deciding which IT service functions to offshore outsource and which ones to retain in-house.

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