Power Politics in the Governance of IT Outsourcing: The Undermining of Top IT Executives
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.
KeywordsInformation Technology Power Politics Business Leader Chief Information Officer Supply Firm
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