Evaluating The Strategic Implications Of Japanese IT Offshore Outsourcing In China And India

Abstract

Many studies have been done on the market, managerial and technological factors that impact IT outsourcing decisions. However, few of these studies have looked at institutional and cultural factors influencing various approaches to outsourcing. Developments in Japanese IT software outsourcing make it an excellent sector for studying the impact of such institutional and cultural factors. This qualitative study looks at the contrasting motivations behind IT outsourcing to India and China in order to gain insights into what the Japanese firms consider the key success factors for IT software offshore outsourcing. Preliminary indications are that old business relations, trust, language requirements, cultural similarity and the ability to capture certain idiosyncratic business practices and routines are essential factors driving Japanese IT outsourcing decisions.