Determinants of success in IS offshoring projects: Results from an empirical study of German companies

Authors:
Markus Westner;Susanne Strahringer
Affiliations:
European Business School, Oestrich-Winkel, Germany;Dresden University of Technology, Dresden, Germany
Venue:
Information and Management
Year:
2010

Citing 15
Cited 1

Synching or Sinking: Global Software Outsourcing Relationships

IEEE Software
An Empirical Study of Speed and Communication in Globally Distributed Software Development

IEEE Transactions on Software Engineering
IT Outsourcing Strategies: Universalistic, Contingency, and Configurational Explanations of Success

Information Systems Research
Critical Team-Level Success Factors of Offshore Outsourced Projects: A Knowledge Integration Perspective

HICSS '05 Proceedings of the Proceedings of the 38th Annual Hawaii International Conference on System Sciences (HICSS'05) - Track 1 - Volume 01
IT Outsourcing Success: A Psychological Contract Perspective

Information Systems Research
Project Management Capabilities: Key to Application Development Offshore Outsourcing

HICSS '06 Proceedings of the 39th Annual Hawaii International Conference on System Sciences - Volume 08
A New Instrument to Measure the Success of IT Outsourcing

HICSS '06 Proceedings of the 39th Annual Hawaii International Conference on System Sciences - Volume 08
A decision table: offshore or not?: (when not to use offshore resources)

interactions - Offshoring? Welcome to the new global village
The effect of service quality and partnership on the outsourcing of information systems functions

Journal of Management Information Systems
The impact of cultural differences in offshore outsourcing--Case study results from German---Indian application development projects

Information Systems Frontiers
Understanding the outsourcing learning curve: A longitudinal analysis of a large Australian company

Information Systems Frontiers
The impact of process standardization on business process outsourcing success

Information Systems Frontiers
An integrative model of trust on IT outsourcing: Examining a bilateral perspective

Information Systems Frontiers
Innovating or doing as told? status differences and overlapping boundaries in offshore collaboration

MIS Quarterly
The Post-Offshoring IS Organization

Information Resources Management Journal

Vicious and virtuous circles of offshoring attitudes and relational behaviours. A configurational study of German IT developers

Information Systems Journal

Quantified Score

Hi-index	0.00

Visualization

Abstract

High labor cost in western countries allows cost savings by companies engaging in IS offshoring. However, studies worldwide indicate that a large number of companies that engaged in IS offshoring are not satisfied with the outcome. Our study examined the determinants of IS offshore project success: We developed a model and empirically tested it with data collected from 304 experts who reported on projects offshored from Germany to a wide range of near and distant countries. The model posited a direct effect of offshoring expertise and trust in offshore service provider (OSP) on success, as well as an indirect effect mediated by project suitability, knowledge transfer, and liaison quality. An analysis using partial least squares (PLSs) provided significant support for almost all these relationships. However, it showed that offshoring expertise played a minor role in explaining success and the mediating constructs. Trust in OSP had a small direct effect on success and a medium to large effect on the mediating constructs. Project suitability, knowledge transfer, and liaison quality all had small direct effects on success.