Outsourcing Information Technology: How Culture and Attitude Affect Client-vendor Relationships

By Jan D. Felton.

Published by The Organization Collection

Format Price
Article: Print $US10.00
Article: Electronic $US5.00

Companies around the world are turning to outsourcing to help reduce or stabilize costs, access advanced technology, compensate for a lack of skilled information technology (IT) workers, and improve business efficiency. This quantitative and descriptive study investigated the impact of perceived differences in relationships, culture, and attitude between client and vendor employee groups on the success or failure of outsourcing IT in an organization. The survey sample consisted of 125 client employee participants and 125 vendor employee participants from two organizations in the United States. Chi-square analyses were used to assess the significant differences between the responses of the client employees and the vendor employees, and a content analysis was used to assess responses to open-ended questions. The results indicated that significant differences in culture appear to hinder the success of IT outsourcing and that a successful relationship between client and vendor is dependent upon recognition and comprehension of those cultural differences. The current research suggests that given the effects of globalization, a change process model is needed for identifying client and vendor strategic visions. This model takes an open systems perspective and relies on many organizational behavior concepts such as team dynamics, perceptions, and conflict management.

Keywords: Outsourcing, Contracting Relationships, Corporate Culture, IT Infrastructure, International Outsourcing

International Journal of Knowledge, Culture and Change Management, Volume 8, Issue 3, pp.127-156. Article: Print (Spiral Bound). Article: Electronic (PDF File; 826.938KB).

Dr. Jan D. Felton

Associate Professor, Department of Business and Economics, Elizabeth City State University, Elizabeth City, North Carolina, USA

More than 17 years of experience as Technology Specialist. Retired Chief Technology Officer for NASA Research Center. I have experience in integrating theoretical concepts and practical ideas, in the classroom, office environment and in the online community. I have developed several courses for universities. Recognized as a respected leader and having a reputation for defining the problem, recommending and implementing a successful solution. More than 22 years as an Associate professor in the classroom and online teaching undergraduate and graduate courses. View teaching and learning as a dynamic and interactive process. Work with undergraduate students assisting with research projects and mentoring graduate students with their thesis and dissertation research. I am active in public teaching, regularly lecturing in colleagues’ classes, skilled in delivering presentations to managers, CEO’s, business leaders, executives and community groups.

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