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Advancing the Concepts & Practices of Information Resources Management in Modern Organizations

Issues and Challenges in Global IT Outsourcing

Issues and Challenges in Global IT Outsourcing
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Author(s): Subhankar Dhar (San Jose State University, USA) and Bindu Balakrishnan (San Jose State University, USA)
Copyright: 2005
Pages: 4
Source title: Managing Modern Organizations Through Information Technology
Source Editor(s): Mehdi Khosrow-Pour (Information Resources Management Association, USA)
DOI: 10.4018/978-1-59140-822-2.ch148

Abstract

Many large companies are increasingly outsourcing their IT functions. Factors like lower costs, improved productivity, higher quality, higher customer satisfaction, and ability to focus on core areas are some of the benefits of outsourcing. However, there are many challenges and risks associated with IT outsourcing. In this paper, we identify the main risk factors and best practices in global IT outsourcing. In addition, we delve into some important issues on IT outsourcing, particularly the challenges along with benefits. Finally we present case studies of two Global 200 companies and validate some of the claims made by previous researchers on IT outsourcing. This study will help the management to identify the risk factors and take the necessary remedial steps.

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