Information Technology Outsourcing Cost and Policy in Developing Countries

Abstract

Information Technology Outsourcing (ITO) practices in developing countries have come with numerous problems ranging from organisational setup, absence of mutual trust between IT suppliers and clients, inconsistent policies and lack of deployable ITO model and several others. These and other problems are well pronounced among the developing countries who are tapping from the global outsourcing resource market. Malaysia being one of the leading ITO destinations is not an exception in these problems. Therefore, in this chapter, we took an in-depth look into various challenges facing Malaysia’s ITO industry especially from suppliers’ perspectives. We looked at problems facing ITO practices in the light of government policy and ITO model in this chapter. We also used qualitative research method with special reference to interpretive and exploratory approach for the analysis of relevant issues in the chapter.