The Driving Factors and Barriers impacting Client's Selection of Vendors based on Competitiveness in Information Technology Outsourcing in Gaza

Abstract

This research is aimed at exploring the driving factors and barriers (appropriate infrastructure, cost-saving, skilled human resource, quality of services and products, language and culture, project management, political and legal instability, and communication) that impact the competitiveness of Information Technology Outsourcing (ITO) vendors in attracting clients in the Gaza Strip. The research targets all companies working in ITO in Gaza. The researcher applied the descriptive analytical approach. A purposive sample was adopted for the research population; which was consisted of all managers, team leaders, system analysists, software developers, and marketing and public relations officers working in ITO companies (200 in number). A total of 148 questionnaires were distributed and 124 were collected, with response rate 82.5 %. The SPSS was used for analysis. The research revealed that most ITO companies agreed to the level of some driving factors (appropriate infrastructure, cost-saving, quality of services and products, language and culture, project management, and communication). However, they disagreed to the following factors (skilled human resource and political and legal instability). Moreover, only three factors (Level of Communication, Level of political and legal instability and Level of quality of services and products) together do significantly impact competitiveness of vendor organizations and the rest of factors are insignificant to competitiveness. Furthermore, there is insignificant difference among the respondents toward these fields due to the personal characteristics due to Gender, age, job title, Years of Experience in IT field, Educational level, and years of Experience for company. The study recommends ITO firms to evaluate human resources skills and conduct needs assessment in order to build the capacities of employees. Also, it recommends government to facilitate the establishment of this type of business and exert more effort locally and internationally to develop this sector. The universities also must take its role as it graduates thousands of students each year and promote the outsourcing culture as a gate for enhancing Palestinian economy.