International outsourcing of information technology services : Review and future directions

Abstract

Purpose - This aim of this paper is to review the development of the empirical literature on international outsourcing of information technology services over the 1992-2007 periods and to identify future research areas. Design/methodology/approach – A sample of 78 empirical academic publications on international outsourcing of IT services conducted between 1992 and 2007 across 46 scholarly journals constitutes the main data for analytical purposes. The sample was compiled following extensive electronic searches of the main academic data bases. After clustering the studies in the sample according to their main research areas, a narrative approach was used to review developments in each cluster and to identify emerging research areas. Findings – Four main areas of research are identified, namely outsourcing decision, outsourcing management, outsourcing outcome and the role of offshore service providers. The review suggests that research efforts to date have been predominantly on outsourcing decision and outsourcing management mostly from the perspective of the client. Future research opportunities exist in the area of outsourcing strategy and performance, the behaviour and performance of offshore service providers particularly within the context of firms from less developed countries competing globally, and the nature of competition among offshore service providers both within and among countries. Originality/value – This is the first review which focuses on empirical studies of outsourcing for IT services. This study identifies several gaps in the literature and points to the need for more research on outsourcing from the perspective of offshore service providers.