Success Factors of IT Outsourcing in Thailand

Abstract

This study aimed to investigate factors that had an effect on IT outsourcing success and client satisfaction in Thailand. The factors comprised of service quality, vendor capability, and relationship quality. Two hundred and thirty two samples were collected by questionnaires from those whose role was managing IT outsourcing in the companies listed on the Stock Exchange of Thailand. The questionnaire with fivelevel rating scales was adopted as the research instrument. Data were statistically analyzed by means of Confirmatory Factor Analysis and Structural Equation Modeling. The results indicated that IT outsourcing success was affected by service quality and relationship quality, while client satisfaction was affected by vendor capability. Moreover, vendor capability had an indirect impact on IT outsourcing success through client satisfaction and client satisfaction had a direct impact on IT outsourcing success. This implied that the two factors; service quality and relationship quality, were adequate to describe the characteristics of IT outsourcing success in Thailand, while the other factor, vendor capability, was sufficient to describe the client satisfaction. Client satisfaction was an important factor for IT outsourcing success. The findings of this study led to understand the IT outsourcing success of the companies listed on the Stock Exchange of Thailand as follows. Knowledge and experience of vendor employee were important for the quality of service. Communication with completion, accuracy, reliability and in a timely manner was required for relationship quality. The ability of vendor to manage good relationship with client was necessity for client satisfaction. In addition, client satisfaction was an essential part of IT outsourcing success as it pushed vendors to satisfy users by increasing their service value.