—IT outsourcing is the subcontracting of previous
in-house IT activities to external IT vendors who can do them
better and more efficiently because they possess higher
resources and expertise. This study seeks to research on factors
that motivate IT outsourcing in Thailand and the significance
of each factor. The conceptual framework is presented and it is
suggested that four factors, which are core business factor,
technology factors, expertise, reliability and quality factors,
and cost savings factors, play an important role in motivating
firms to do IT outsourcing. The research conducted utilized
one sample t-test to prove that each factor positively influences
IT outsourcing. The results concluded that all four factors
positively influence IT outsourcing of which core business
factor and expertise, reliability and quality factors are the most
important factors. This paper also concludes that contrary to
the U.S and the U.K where cost the savings factor is the most
significant, Thailand’s most significant motivating factor for IT
outsourcing is for it to be able to focus on its core business.
Lastly, this research also provides several major
recommendations that IT outsourcers must acknowledge and
—Outsourcing, IT outsourcing, total
outsourcing, selective outsourcing.
Thipchutar Paparwekorn is with the Advanced Info Service, Bangkok,
CO 10400 Thailand (e-mail: email@example.com).
Navneet Madan, Settapong Malisuwan, and Wassana
Kaewphanuekrungsi are with the National Broadcasting and
Telecommunications Commission, Bangkok, CO 10400 Thailand (e-mail:
firstname.lastname@example.org, email@example.com, firstname.lastname@example.org).
Cite:Thipchutar Paparwekorn, Navneet Madan, Settapong Malisuwan, and Wassana Kaewphanuekrungsi, "Factors That Motivate the Use of IT Outsourcing in
Thailand," Journal of Economics, Business and Management vol. 2, no. 3, pp. 173-180, 2014.