COMPARATIVE ANALYSIS OF THE SUCCESS FACTORS OF OUTSOURCING COUNTRIES

Abstract

The project looked at the success factors for an outsourcing provider and shows how their attractiveness can be improved. By creating a model based on the literature study, the advantages and risks of outsourcing, we saw that outsourcing can be divided into six important dimensions. These dimensions are defined based on the viewpoint of a country. To define ‘attractiveness’ we had to set a golden standard to which other countries can be compared. The most logical country, is the one who is the most successful, therefore we chose India. To validate the model, we needed a country close to the success of India, which resulted in China. The outcome of the model from India and China are used to calculate the similarity, which represents the attractiveness. A high cosine similarity means attractive and low similarity means not attractive. Then Bhutan is chosen as the prediction set to measure its attractiveness as an outsourcing provider based on the six dimensions. By analyzing the success factors for an outsourcing provider, it is possible to improve the attractiveness over time. When the six dimensions are improving, the attractiveness is also improving. The two most important dimensions are the knowledge and government dimensions. These are the catalyst for improving the attractiveness.