Barriers and opportunities of offshoring strategies : The case of Indpro

Abstract: Communication technology allows companies to deliver services electronically. This leads to a lower dependence on geographical location. Historically, companies have moved IT related work to countries where wages are lower to decrees costs. When IT systems over time increases in complexity, competence and resource availability becomes more important. In order to achieve success, the customer and vendor need to work closely. In previous research the customers’ point of view are mainly presented when examining the offshoring relation, but participation effect the vendor as well. The need to examine the offshoring relationship from the vendor’s point of view has increased as the vendor becomes more significant. This thesis has examined the point of view of Indpro, an IT service provider located in Bangalore (India) primarily serving customers located in Sweden. The empirical materials are based on a field study of Indpro during the author´s ten-week stay in Bangalore, India, where daily work was conducted at Indpro’s office. Materials collected during the field study where analysed through the lens of the theoretical framework created by Balaji & Ahuja (2005), called the offshore project success model. In conclusion, there is no doubt that cross-cultural understanding and clear expectations form the foundation of a trusting relationship between the vendor and the customer, which builds project success.