Information technology (IT) outsourcing by business process outsourcing/ information technology enabled services (BPO/ ITES) at firms in India: the role of costs, benefits, strategy and risk. | |
| Author | Patil, Shrinivas |
| Call Number | AIT Diss no. DBA-SOM-15-02 |
| Subject(s) | Information technology--India Contracting out--India |
| Note | A dissertation submitted in partial fulfillment of the requirements for the degree of Doctor of Philosophy in Business Management., School of Business Management |
| Publisher | Asian Institute of Technology |
| Abstract | For over a decade, outsourcing has been a key methodology to manage IT resources in various industrial sectors (Choudhury and Sabherwal 2003; Kishore, Rao, Nam, Rajagopalan and Chaudhury, 2003; Lacity and Willcocks 1998). The recent information technology outsourcing (ITO) decision by firms in India is based on strategies, (Aubert, Patry and Rivard, 1998; Aubert, Dussault, Patry and Rivard, 1999) benefits (Li Wang, Kholekile, Jing Wang and Zhu, 2008) and risks (Sullivan and Ngwenyama, 2005; Chad Lin, Graham and McDermid, 2007). The purpose of this research was to understand the role of various drivers like cost benefits, strategy and risk play when Indian BPO/ITES firms outsource their information technology functions to third party vendors. The survey corroborates what looked like a one-point goal of cost benefits from outsourcing, when the same logic is applied to Indian BPO/ITES firms opting for ITO; it has emerged to have a high risk factor, rather than just a cost saving measure. To gain more insight into the ITO Paradigm by Indian BPO/ITES firms the researcher carried out a survey on nine firms in the form of structured questionnaires pertaining to ITO activities carried out since1999 till 2010. The researcher analyzed the data gathered and tested the hypothesis ‘“H1” Is “Cost Benefits” the single largest goal/driver (Godwin, 2000) for ITO to a third party vendor by Indian BPO/ITES firms? The results show that cost benefits, as a primary driver for ITO is defeated. The researcher engaged two Indian BPO/ITES firms as case study participants, who had ITO to a third party vendor with two main drivers “Cost Benefits” and “Strategy”. Case 1 -Firstsource Solutions Limited opted for quasi (selective) ITO and gained moderate cost benefits with all risk related to ITO mitigated. Case 2 - “ABPO” Ltd opted for an out of box solution for ITO with total ITO (which was a high-risk strategy) and achieved high cost benefits with minimal risk. Based on the findings a conceptual framework and guide is developed. However, the researcher encourages other researchers to test this conceptual framework, guide in other countries and other business, and document the results. |
| Year | 2015 |
| Type | Dissertation |
| School | School of Management (SOM) |
| Department | Other Field of Studies (No Department) |
| Academic Program/FoS | Doctor of Philosophy in Business Administration (Publication code = DBA-SM, SM) |
| Chairperson(s) | Winai Wongsurawat;Badir, Yuosre; |
| Examination Committee(s) | Vatcharaporn Esichaikul;Vatcharapol Sukhotu;Ismail, Wan Khairuzzaman Wan; |