IT Services Offshoring: Opportunities and Critical Factors from a Strategic Perspective

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Author(s): Paolo Popoli (Parthenope University of Naples, Italy)
Copyright: 2011
Pages: 19
Source title: Information Systems and New Applications in the Service Sector: Models and Methods
Source Author(s)/Editor(s): John Wang (Montclair State University, USA)
DOI: 10.4018/978-1-60960-138-6.ch014

Keywords: Business & Management / Business Information Systems / Business Science Reference / Electronic Services & Service Science

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Abstract

In light of new changes in the market, in supply as well as demand, IT offshore outsourcing may be interpreted as an articulate and complex tool for pursuing strategic goals which go well beyond the traditional objective of cost saving. Indeed, IT services today are required not only to make management processes more efficient and economical, but also to help increase a company’s capacity to create value, and thus gain a greater competitive advantage. From a strategic point of view, IT structures are increasingly crucial in the implementation of business, and are no longer mere support factors in value chain activities. At the same time, the increased potential of this tool has also led to a greater complexity of management, which can only be properly matched by a flexible, dynamic governing model. This paper will identify some critical elements in managing offshoring relationships aimed at the innovation and improvement of the value creation processes.

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IT Services Offshoring: Opportunities and Critical Factors from a Strategic Perspective

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