International Examples of Large-Scale Systems - Theory and Practice II: A Case Study of Managing IT Outsourcing Partnerships in Asia

This case study describes an Asian Information Technology (IT) outsourcing partnership in the discrete manufacturing industry. Interviews with business and IT executives of both the Outsourcing Company and the IT Services Supplier provided the necessary insights. Nowadays many organizations in discrete manufacturing move their plants to Asian countries or other lower wages countries. Most IT services suppliers in Asia are relatively inexperienced with the management of IT outsourcing relationships. However, not only are the IT services suppliers inexperienced, the outsourcing companies do not have a track record in managing IT outsourcing relationships. Cultural issues also play an important role, especially power distance and collectivism. Contrary to the level of experience, cultural factor do not change over a few years. This article aims to provide a better understanding of managing IT outsourcing partnerships in developing Asian countries on the basis of an IT outsourcing partnership model.