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Factors That Motivate the Use of IT Outsourcing in Thailand

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Author(s): Thipchutar Paparwekorn | Navneet Madan | Settapong Malisuwan | Wassana Kaewphanuekrungsi

Journal: Journal of Economics, Business and Management
ISSN 2301-3567

Volume: 2;
Issue: 3;
Start page: 173;
Date: 2014;
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Keywords: Outsourcing | IT outsourcing | total outsourcing | selective outsourcing.

ABSTRACT
IT outsourcing is the subcontracting of previous in-house IT activities to external IT vendors who can do them better and more efficiently because they possess higher resources and expertise. This study seeks to research on factors that motivate IT outsourcing in Thailand and the significance of each factor. The conceptual framework is presented and it is suggested that four factors, which are core business factor, technology factors, expertise, reliability and quality factors, and cost savings factors, play an important role in motivating firms to do IT outsourcing. The research conducted utilized one sample t-test to prove that each factor positively influences IT outsourcing. The results concluded that all four factors positively influence IT outsourcing of which core business factor and expertise, reliability and quality factors are the most important factors. This paper also concludes that contrary to the U.S and the U.K where cost the savings factor is the most significant, Thailand’s most significant motivating factor for IT outsourcing is for it to be able to focus on its core business. Lastly, this research also provides several major recommendations that IT outsourcers must acknowledge and implement.
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