A STUDY OF SUCCESSFUL OUTSOURCING FACTORS

摘要

IT outsourcing developed rapidly both in breath and depth in recent years. Both the client and the vendor focus on how to achieve success from an outsourcing project. In this paper, we identified the Critical Success Factors (CSFs) of outsourcing success in both parties' perspective. We found there are 7 CSFs for the client: Relationship building, Governance, Requirement management, Communication, Contracting, Knowledge sharing, and Vendor selection, and 5 CSFs for the vendor: Relationship building, Knowledge sharing, Communication, Requirement analysis, and Contracting. After that, we analyze the challenges in outsourcing to China and their effects on CSFs and then propose some important practices to reduce the effects. These important practices are exchange of staff on a long term basis and builds close individual personal relationship, frequent and formalized communication, tight governance and strong requirement management.