Operational Capabilities Redeployment in Information Technology Outsourcing: From Chinese Vendor's Perspective

: Yang B, Liu Y, Lin T

: 2012

: International Journal of Information Processing and Management

: 2

: 3

: 2

: 98

: 105

: 8

: 2093-4009

DOI: https://doi.org/10.4156/ijipm.vol3.issue2.11

: http://api.elsevier.com/content/abstract/scopus_id:84870364324

China has become one of the most popular destinations for Information Technology Outsourcing (ITO). Chinese ITO vendors have developed operational capabilities that are complementary with each other through their outsourcing relationship with Japanese and US clients. As more and more countries are outsourcing IT projects to China, how to redeploy established capabilities to different markets is one of the most important issues faced by Chinese vendors. The aim of this paper is to provide insights into the redeployment of operational capabilities in offshore ITO projects in a multiple market environment. Our case analyses indicate that high level of client-specific capabilities developed with Japanese clients may have negative impacts on the development of other IT capabilities and therefore limits the redeployment of established capabilities. An emphasis on process capability and standardization by western clients, on the contrary, will positively complement other capabilities therefore will help vendors to redeploy capabilities in domestic market.