ABSTRACT

Title : Influencing Factors of Knowledge Transfer Success In Information System

Outsourcing

In recent years, there is an increased interest in Information System (IS) outsourcing, both in
academia and practise. The IS outsourcing is complex, where the outsourcing receiver/client
(Principal as per agency theory) and outsourcing partner/vendor (Agent as per agency
theory) interact to produce the required product/service. The success of an IS outsourcing
project will largely depend on the goodness of the knowledge transfer between the key
parties. It is therefore expected that the required knowledge be transferred from the vendor to
the client and vice versa. In spite of the recognized importance and the potential value of
knowledge transfer in IS outsourcing, little systematic and holistic research has been pursued
to understand the key factors affecting knowledge transfer success from both parties (clientvendor). Additionally, most of the research is still remain in theoretical approach. To address

this gap, the researcher applied qualitative method via theoretical and empirical approach
through operationalization of identified factors that give influence towards the successful of
knowledge transfer process in IS outsourcing from client and vendor perspectives. The former
comprised of reviews of previous theories, models and standards, while the latter was carried out
by interviewing twelve officers involved in IS outsourcing project from both parties. The findings
from the reviews were combined with the empirical data to form the framework. Expert review
analysis is used to validate the proposed framework. The validation process is important as it

can be used as a guideline to assist the IS outsourcing project in making sure both parties
achieved their ultimate goals through win-win situation. The result reveals that vendor
characteristics, client characteristics and knowledge characteristics influence knowledge
transfer success. Result demonstrate that both parties should address each critical success
factor in order to gain effective flow of knowledge transfer and acquisition during the IS
outsourcing project.