Information Systems Offshore Outsourcing: An Exploratory Study of Motivations and Risks in Large Spanish Firms

Abstract

Information systems offshore outsourcing is motivated by such factors as globalization, technological development and the possibility to explore new markets. However, both the geographical and the cultural distance create more risks than in onshore outsourcing. The aim of this article is to develop a typology of firms based on the specific motivations and risks associated with offshore outsourcing in large Spanish firms.

Keywords:

• information systems management
• offshore outsourcing
• motivations
• risks
• Spain

ACKNOWLEDGMENTS

This article has been carried out with the financial support of Vicerrectorado de Investigación, Desarrollo e Innovación, University of Alicante, Spain (GRE09-08).

The authors would like to thank the editor (Janice C. Sipior), the senior editor and two anonymous reviewers for all their suggestions.

Notes

1. We must mention the seminal article by Carmel and Agarwal (2002), who researched into the offshore outsourcing driving factors and impediments.

2. Although some of the motivations and risks mentioned could have consequences at a macroeconomic or general level, our interest in them lies at an organisational level (i.e., the poor infrastructures of a country could prevent a potential client from offshoring to specific providers in that country; the growth of the unemployment rate in a “client” country could affect the morale and motivation of the IT staff of a client organisation operating in that country).

3. The collaboration provided by Mr. Juan Manuel Aparicio and Mr. Ramón Andarias deserves a special mention at this stage.

4. Test to show independence: firms which answered the survey and firms which did not.

• Table

5. Readers could apply for the dendogram graphic to the corresponding author.