How it outsourcing impacts on value creation of manufacturer?

Abstract

Abstract.A growing concern among the manufacturers who are actively involved in Information Technology outsourcing is post-contract management and the ensuing development of what many practitioners have coined the 'outsourcing partnership'. Over the past few decades, information technology outsourcing has become a widely used and researched means for manufacturers to enhance their performance. Increasing attention has been paid to building successful partnerships in information systems outsourcing. This study employs strategic social positioning, customer participation, customer orientation, and communication culture to develop research model. The quantitative method will be used to validate the research model and test hypotheses developed. This study uses survey method to collect data, and analysis of the reliability, validity and test the proposed hypotheses by Smart Partial Least Squares. The purpose of this study is to use above four factors to produce value co-creation between outsourcing vendors and manufacturers. The final aim is for the future collaboration. This combination will allow manufacturers and information technology outsourcing vendors to increase their value co-creations in the fields of these factors.