How Do Critical Success Factors Contribute to a Successful IT Outsourcing : A Study of Large Multinational Companies

Abstract

The increasing competition on the market means that multinational companies (MNCs) as well as many otherorganizations must take advantage of business improvements. This research addresses the critical success factors(CSFs) for the service receiver of IT outsourcing (ITO). It delivers a limited number CSFs that, with a correctimplementation, can deliver favorable results that are necessary for an efficient ITO. These 11 CSFs, are describedin detail, and a critical study is performed to identify the value they could create. In addition, the way theimplementation of the provided CSF could mitigate the ITO risk has been analyzed using transaction cost theory. Apriority list describing the order in which the CSFs should be implemented has been developed and enhanced with arecommendation as to when in the ITO life cycle each CSF should be implemented. A case study research with twoMNCs with more than 20 years’ experience in ITO has been used to prove the results.

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