Analysis of Factors Affecting Successful Outsourcing through Subsidiaries in IT Consulting Companies
Kumar, Sashi (2023)
2023
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Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-2023061924171
https://urn.fi/URN:NBN:fi:amk-2023061924171
Tiivistelmä
This thesis was done for a Finnish IT outsourcing company. The case company is a start-up company located in Vantaa, with the main business as IT outsourcing. The company is facing a scarcity of IT talent for its clients within Finland and planning to outsource human resources to India. The exponential growth in the IT sector in India because of specialized human resources and cost-effective labor prices, has generated great opportunities for IT companies to leverage advantage by outsourcing the IT services. However, the success of outsourcing depends on multiple factors including organizational, cultural, and project-specific elements, along with many internal and external environmental factors. Therefore, the thesis aimed to find out the key factors that affect the success or failure of IT outsourcing from Finland to India with a specific emphasis on outsourcing through subsidiaries to help the case company make informed decisions.
The theoretical concepts which were important for this study are covered in detail. For analyzing the Indian IT market, SWOT analysis and PESTEL analysis were done. For deciding the important factors affecting outsourcing, different theories about organizations and the management of projects were studied which included institutional theory, agency theory, transaction cost theory, resource-based view, and resource dependence theory. The study was conducted using qualitative research methods. Primary data was collected by conducting interviews using mixed purposeful sampling. The individuals selected for this study were highly qualified IT professionals who had experience in Finland as well as in India in IT outsourced projects.
The study of the results of qualitative data highlighted the impact of each factor in the outsourcing business. It helped to categorize the factors into favorable and unfavorable categories. Further, this study helped to identify the ways to manage unfavorable or challenging factors by mitigating or eliminating them. Therefore, this study provided detailed information about each important factor in the IT outsourcing business through subsidiaries.
The theoretical concepts which were important for this study are covered in detail. For analyzing the Indian IT market, SWOT analysis and PESTEL analysis were done. For deciding the important factors affecting outsourcing, different theories about organizations and the management of projects were studied which included institutional theory, agency theory, transaction cost theory, resource-based view, and resource dependence theory. The study was conducted using qualitative research methods. Primary data was collected by conducting interviews using mixed purposeful sampling. The individuals selected for this study were highly qualified IT professionals who had experience in Finland as well as in India in IT outsourced projects.
The study of the results of qualitative data highlighted the impact of each factor in the outsourcing business. It helped to categorize the factors into favorable and unfavorable categories. Further, this study helped to identify the ways to manage unfavorable or challenging factors by mitigating or eliminating them. Therefore, this study provided detailed information about each important factor in the IT outsourcing business through subsidiaries.