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Alignment of supply and demand in the information technology outsourcing market of an emerging economy

Tipo de publicación : Otros

Abstract

The advances in information technologies together with increasingly competitive markets have had a significant impact on the structures of organizations, leading companies to consider outsourcing certain IT-related services. This article presents an analysis of the main characteristics of supply and demand for outsourcing services in the Chilean market.

The main results indicate that IT outsourcing does not necessarily contribute to greater profitability of IT projects, nor does it allow IT managers to devote more time to strategic tasks. They further show that the degree of adoption of IT outsourcing is fundamentally related to the clients perception of the providers quality of service and compliance with service levels. Also demonstrated is the importance of the degree of alignment between clients and providers strategic visions, particularly regarding the factors behind the decision to outsource and the reasons to chose a particular provider.