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Power Politics in the Governance of IT Outsourcing: The Undermining of Top IT Executives

In: Driving the Economy through Innovation and Entrepreneurship

Author

Listed:
  • Subrata Chakrabarty

    (University of Nebraska)

  • Jun Wang

    (Troux Technologies)

Abstract

IT labor is cheaper in countries like India and China than in the advanced economies like USA. When a US firm’s performance has been poor, its business leaders (CEO, CFO, COO) may attempt to undermine its IT leaders (CIO, Head of IT, etc.) to exercise power over the outsourcing of IT work. IT leaders may resist such attempts if they have the support of a sizeable in-house IT workforce—who might be incited by their cultural differences against the supplier’s IT workforce. Ultimately, a consequence of business leaders undermining IT leaders is that the customer firm’s outsourcing performance could suffer.

Suggested Citation

  • Subrata Chakrabarty & Jun Wang, 2013. "Power Politics in the Governance of IT Outsourcing: The Undermining of Top IT Executives," Springer Books, in: Chiranjit Mukhopadhyay & K B Akhilesh & R. Srinivasan & Anjula Gurtoo & Parthasarathy Ramachandran & (ed.), Driving the Economy through Innovation and Entrepreneurship, edition 127, pages 787-793, Springer.
    • Handle: RePEc:spr:sprchp:978-81-322-0746-7_64
    DOI: 10.1007/978-81-322-0746-7_64
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