Interaction Capability, Process Quality, and Outsourcing Success: A Vendor Perspective in Offshore IT Outsourcing

Nowadays the competition in IT offshoring is fierce along with the rapid growth of IT offshoring. Some of Indonesian IT vendors succeed in acquiring IT projects from clients abroad, but some of them are not successful in delivering the project. Some previous studies have included interaction capability as the determinant of IT outsourcing success, but the concept of interaction is considered as one dimension. This study will explore dimensions of interaction capability including its determinants. Based on the result of semi-structured interview with the representative of Indonesia's leading offshore IT outsourcing company, the interaction between the company and client is very important for the success of software development. Our results show that communication and coordination are the main dimensions of interaction capability. The supporting determinants of interaction capability include human resources management and technology. The inhibiting determinants of interaction capability include cultural distance and temporal distance.