Inter-Cultural Problems of It-Services Outsourcing from Sweden to India

Topics: Outsourcing, Business process outsourcing, Offshoring Pages: 106 (34739 words) Published: July 1, 2010
Degree Project
Inter-cultural problems of IT-services outsourcing from Sweden to India Ahtsham Gul & Amir Zaib 2010-06-23 Subject: Information Systems Level: Master Course code: IV9024
Abstract
IT-services outsourcing from Sweden to India has increased in the last few years and it is often regarded as a strategic measure to handle the increasing costs of IT-related development and maintenance operations. There are a number of advantages of outsourcing however, there are many challenges that outsourcing initiatives face. One of the challenges mentioned by many researchers is the cultural differences between the Swedish culture and the Indian culture. At the same time there is not enough research done about these cultural differences in the context of IT-services outsourcing from Sweden to India. It creates difficulties for the partners involved in an IT services outsourcing initiative to achieve the desired results. In this work we have researched these problems by sending questionnaire to IT- outsourcing companies in Sweden. The questionnaire was prepared after a thorough literature review. The participants were asked if they are still facing the problems identified in the literature review and to also mention any other cultural problems faced by them. The questionnaires were analysed and the results obtained are presented in this work. The results show that the practitioners were still facing the problems. This thesis identifies the root causes, the negative effects and also suggests ways for handling the problems. This research will help the IT-services outsourcing practitioners to manage these problems for achieving better result. II

Acknowledgement
We are grateful to Almighty Allah, whose blessings have always been enormous and who gave us the ability and strength to complete this task. It is a great honour and privilege for us to record this deep sense of gratitude and indebtedness to our honourable supervisors, Prof. Darek Haftor and Prof. Anita Mirijamdotter for their guidance, help and availability during this period. We thank to our teacher Jan Aidemark who gave us valuable comments for improving this work. We thank the participants of the survey for responding to our questionnaires and extending their experiences. We thank our friend Mr. Arif-Ur-Rahman (doctoral student, faculty of engineering, university of Porto, Portugal) and the opponents for their comments. Last yet not least, thanks to our families who have always been supporting and teaching us the value of education. III

Table of Contents
ABSTRACT ...................................................................................................................................... I ACKNOWLEDGEMENT ............................................................................................................. III 1

2
3
INTRODUCTION ................................................................................................................... 1 1.1RESEARCH PROBLEM AREA AND JUSTIFICATION ......................................................................1 1.2RESEARCH QUESTIONS ...........................................................................................................3 1.3SCOPE AND LIMITATION OF THIS RESEARCH ............................................................................3 1.4RESEARCH OBJECTIVE............................................................................................................3 1.5EXPECTED RESULT OF RESEARCH ...........................................................................................4 1.6THESIS STRUCTURE................................................................................................................5 CURRENT THEORY .............................................................................................................6 2.1 OUTSOURCING.......................................................................................................................6...

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