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Abstract

This article aims to understand the complex interactions of factors related to IT offshore outsourcing between India and New Zealand. A systems approach was used to structure this problem situation and develop a model. This study undertook group model building exercises to construct a causal loop model that captured the underlying structure of the system. The analysis of the model revealed a set of eight feedback loops operating in the system identified as responsible for the complexity of the problem situation. In general, the literature on IT offshore outsourcing is based on clients’ perspectives, while this study analyses the issue from a vendors’ perspective. The paper concludes by highlighting a few strategies based on long term structural changes to improve IT offshore outsourcing between India and New Zealand.

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