Readiness and mindset for IT offshoring: Insights from banking and insurance organizations

Abstract

In this research we examine the IT offshore outsourcing (offshoring) practice of a number of leading finance and insurance organizations in the Netherlands. In particular, we investigate the readiness (the state, condition or quality of being ready) and mindset (habits, opinions which affect a person's attitudes) of the organizations for IT offshoring. We examine IT offshoring practice from the process perspective (that is, the dynamics of IT offshoring projects in terms of culture, method use, IT activities, IT governance, knowledge sharing). Among other findings, this research shows that to a greater extent the organizations have realized readiness for method use and mindset for IT activities, and that the overall improvements regarding these aspects have been modest in a two-year period. On the other hand, mindset for dealing with cultural difference has increased while readiness for flexible working, tracking of requirements change, efficient division of work, and systematic communication is still inadequate. Theoretical and practical implications of the findings are further discussed.