Strategies of Information Technology Outsourcing: A Vendor's Perspective

Sushil Paudel

Strategies of Information Technology Outsourcing: A Vendor's Perspective

Keywords : Critical success factors, outsourcing strategy, IT Outsourcing


Cost savings and competition for profitability forces many businesses to implement joint service initiatives. Outsourcing is a strategic initiative for using foreign workers to carry out activities traditionally done by internal employees and resources. This research has concentrated to device outsourcing strategies on vendor's perspective as many emerging markets still find it difficult to mark their footprint in the international market. The success of the IT outsourcing depends upon the internal strength of the vendor, industry specific environmental factors and policies adopted by the country. A snowball sampling technique was used to select respondents and variables were selected from literature review and consulting the subject experts. Quantitative data was used in the study and survey was done in Kathmandu, Nepal. Respondents were outsourcing agencies, freelancers, outsourcing consultants and policy makers. The analysis included Structured Equation Modeling and identified six key strategic factors for emerging market: banking priority, growth capacity, Intellectual Property, country specific specialization, Foreign Direct Investment, and the HR Structure of the vendor.


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