Proceedings of the 1st Sampoerna University-AFBE International Conference, SU-AFBE 2018, 6-7 December 2018, Jakarta Indonesia

Research Article

The Perspectives of a Global Information Technology Outsourcing Model

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  • @INPROCEEDINGS{10.4108/eai.6-12-2018.2286300,
        author={Muhammad Yunus Amar and Julius  Jillbert},
        title={The Perspectives of  a Global Information Technology Outsourcing Model },
        proceedings={Proceedings of the 1st Sampoerna University-AFBE International Conference, SU-AFBE 2018, 6-7 December 2018, Jakarta Indonesia},
        publisher={EAI},
        proceedings_a={SU-AFBE},
        year={2019},
        month={8},
        keywords={service recipient service provider global it outsourcing risk},
        doi={10.4108/eai.6-12-2018.2286300}
    }
    
  • Muhammad Yunus Amar
    Julius Jillbert
    Year: 2019
    The Perspectives of a Global Information Technology Outsourcing Model
    SU-AFBE
    EAI
    DOI: 10.4108/eai.6-12-2018.2286300
Muhammad Yunus Amar1,*, Julius Jillbert1
  • 1: Departemen of Management, Faculty of Economic and Business- Hasanuddin University
*Contact email: myunmar@gmail.com

Abstract

This paper discusses some major contributors to offshore Information Technology (IT) outsourcing risks and examines some key risk mitigation strategies. Offshore IT outsourcing risks emanating from service provider IT capabilities in terms of their communication networks and human resource assets quality and cultural climate are examined using literature drawn from the areas of resource-based theory and culture theory particulary the transaction cost economies. The role of service recipient risk mitigation strategies including strong contract construction and intelligence gathering in moderating the impact of risk drivers on offshore outsourcing risks is discussed. The role of some key service provider policies and practices including policies regarding employees’ acceptable use of client information, practices that seek to increase employee retention, and policies that do not allow employees to work on projects for multiple corporations that are competitors with each other in reducing offshore outsourcing risk is also examined.