Analysis of effect of organizational Capability and Knowledge Management on Success of IT Outsourcing in Organization

Abstract

Fast changes at workplace have affected behavior and performance in organizations. These transformations make organizations to changes their strategies in order to achieve competitive advantage in business. One of these strategies is focusing on main qualifications and making resources out of organization involved in these activities or in fact it is outsourcing of activities. Outsourcing is effective on performance of organizations as an executive useful and economic tool and its applications are increasing. The goal of this research is to analyze effect of organizational capabilities and knowledge management on strategic success of IT outsourcing in organizations.<br /> This research is applicable by its goals and is correlative by it descriptive-survey method and is a field study. Statistical population includes managers and staff working in Mellat Bank of Isfahan whom were about 1300 individuals. In this research sample size was determined by means of limited sample size of population that sample was chosen by random sampling method. Questionnaire was used for data collection and its validity was confirmed by content and construct validity. Cronbach's alpha coefficient was used for measurement of reliability which was calculated 0.86 for organizational capability, 0.84 for knowledge management, 0.84 for outsourcing and 0.93 for the questionnaire. Statistical indexes were used for describing data and compare mean tests and structural equation modeling, were used for test of hypotheses. Amos.20 and SPSS software were used in this research. Results from analysis of findings indicated that organizational capability and knowledge management variables affect outsourcing success and due to regression coefficient in structural equations, knowledge management has direct and indirect effect on IT outsourcing success.