United States offshoring of information technology: An empirical investigation of factors inhibiting Sub-Saharan Africa

by Omoregie, Harry O., Ph.D., CAPELLA UNIVERSITY, 2012, 382 pages; 3549139

Abstract:

In the last decade, the global information technology offshoring (ITO) and business process outsourcing (BPO) services have grown significantly, especially in Asia. The increased demand for offshore services in Asia has presented a difficult problem for U.S. organizations because countries such as India are now experiencing saturation of labor supply, employee attrition, and rising wages. In light of the challenges in Asia, there is a growing pressure on U.S. organizations to find low cost offshore service centers. Between 1990 and 2011, Sub-Saharan Africa (SSA) experienced a surge in World Bank development indicators. Despite the recent surge in SSA development indicators, the volume of U.S. ITO services performed in SSA is miniscule compared to the volume of work performed in Asia. This study tested five hypotheses to examine the relationship between the knowledge of the development indicators in SSA, and the intent of leaders of organizations in the U.S. to offshore IT activities to SSA. The study conducted an online survey of 450 leaders of organizations in the U.S. A total of 187 valid survey responses were received. Inferential statistics using chi-square test was employed for hypothesis testing and statistical significance. The study found statistical significant association among the knowledge of the wages, information and communications technologies (ICT) infrastructure, educated workforce in SSA, and the intent of leaders of organizations in the U.S. to offshore IT activities to SSA. The study revealed that South Africa is the preferred ITO destination in SSA. Apart from South Africa, the research found that leaders of organizations in the U.S. have inaccurate knowledge of the development indicators in most SSA countries. The study finding suggest that if the offshore of IT activities to SSA must increase, the knowledge of the development indicators in SSA must align with the information found on World Bank global development indicator database and CIA World Fact Book.

AdviserJohn Grillo
SchoolCAPELLA UNIVERSITY
Source TypeDissertation
SubjectsManagement; Information technology; Sub Saharan Africa studies; Organizational behavior
Publication Number3549139

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