An Empirical Research Of Knowledge Transfer In IT Outsourcing Projects

Along with IT plays an increasingly important role in the enterprise value chain, IT outsourcing projects involving multiple organizations and departments become increasingly common. IT outsourcing industry is now flourishing. However, high failure rate of IT outsourcing projects continues to make people doubt, and leads to the academic thinking. From the point of view of the theory of knowledge management, IT outsourcing projects fail mainly due to the lack of effective knowledge transfer between IT outsourcing service providers and the customers. Effective transfer of knowledge not only to enhance project management, relationship management and service delivery capabilities of the IT outsourcing service provider, but also to obtain higher performance of IT outsourcing projects. In IT outsourcing projects, IT services providers have the knowledge of IT and information systems development. The customers have the firm-specific knowledge and domain knowledge of business processes. Only through knowledge transfer, integration and innovation of knowledge can be achieved, and ultimately solution of IT systems serving specific client-side can be formed. Therefore, how to enhance the knowledge transfer from the client side to the team of IT outsourcing service provider in the IT outsourcing projects, how to achieve deeper, more efficient knowledge transfer, need to discuss deeply.In this study, from the perspective of IT outsourcing service provider, we studied knowledge transfer from the client side to the project team of IT service providers, based on knowledge transfer theory, theory of the outsourcing relationship management, team research and control mechanisms. Team characteristics of IT outsourcing service providers, characteristics of the client side, outsourcing control mechanism, relations of mutual processes and other factors are included in the integrated framework. Successful knowledge transfer-oriented, we established a knowledge-transfer influencing factor model, based on which we carried out empirical research involving four deep case interviews and437questionnaires (126teams).The innovations of this paper include following aspects:1、From the perspective of the IT outsourcing service provider, this paper digs the particularity of the knowledge transfer in IT outsourcing projects. After summary and analysis of domestic and foreign related research, combined with the characteristics of the Chinese business environment, the individual characteristics and interaction factors of team members, the control mechanisms factors and relationship governance factors are introduced into the traditional knowledge transfer factor model. This paper built a model of the influencing factors to knowledge transfer in IT outsourcing projects.2、Based on the survey data got from Chinese IT outsourcing service provider, this paper made an empirical research on the theory model and Hypothesis, so as to arrive conclusions which are closer to the actual situation of the Chinese IT outsourcing companies.In terms of the characteristics of IT outsourcing services team:Because of staying in cross-organizational project team, the members’personal senses become reduced, and meanwhile their own behavior will be self-adjusted to the goals of organization and team. The level of extraversion and stability of team members’ personality characteristics have no significant impact on knowledge transfer. Team atmosphere with trust, positive and clear objectives creates a favorable environment for knowledge transfer, and has a significant correlation with knowledge transfer. IT outsourcing project teams as the recipient of knowledge, their positive willing to get knowledge from the client-side which is a prerequisite for knowledge transfer, plays a positive role to promote knowledge transfer. The abilities of IT outsourcing project team members on discovering, acquiring, absorbing and applying new knowledge are critical important. Teams with stronger capacities of absorption and problem-solving skills by new knowledge have better performance on knowledge transfer.The customers’supports felt by IT outsourcing project teams have an impact on knowledge transfer through the intermediary role of trust control. When members of the IT outsourcing project team feel the customer’s good support, both sides of customers and IT outsourcing project teams tend to take a trust-based informal control mechanism to govern the contractual relationship. In the case of a high level of trust between the two sides, the knowledge transfer take place smoothly and efficiently.Timely, accurate, sufficient, credible communication and harmonious relations between two sides of outsourcing play a significant positive role in promoting knowledge transfer. This study also found that communication through the intermediary of control of trust and harmonious relationship played a positive role in promoting knowledge transfer. Good communication can enhance mutual understanding and trust, effectively reduce the information asymmetry and levels of conflict, reduce opportunism, and improve the level of mutual trust. In further good communication contributes to mutually harmonious cooperative relations and provides a good atmosphere for knowledge transfer.The study found that the contractual control between the two sides of IT outsourcing had negative effect on knowledge transfer. When the contract is too complex or severe, or else transaction relation is frequently governed by contractual control, the level of conflict will rise, and the resentment between transaction partners will generate. These restrict the occurrence of knowledge transfer. For IT outsourcing projects, trust control is an extremely important form of relation-governance. IT outsourcing contracts are always incomplete, more flexible trust control can just make up the defects caused by the incompleteness of contract, and play a positive role in promoting knowledge transfer.3、Additionally, cross-level theory and methods of analysis are adopted in this paper to make reasonable measurement and operating on the variables of both individual level and team level. The aim is to get scientific and systematic understanding of organizational phenomena with a more integrated method.This research has important practical significance in how to overcome the obstacles of inter-organizational knowledge transfer; to promote quick and efficient flow of knowledge in IT outsourcing projects, to improve the level and ability of the project team of IT service providers, and to promote the successful implementation of IT outsourcing projects.