Critical success factors for suppliers in the implementation of operations outsourcing in telecommunnications


Student thesis: Doctoral Thesis

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  • Christopher Kwoon Shun LUK

Related Research Unit(s)


Awarding Institution
Award date3 Oct 2011


Many studies have been carried out on outsourcing in various industries. However, the vast majority of these studies were done from the demand side or from the perspective of customers who transfer their services to outside companies. This research adopts the supplier's perspective to study the implementation of operations outsourcing in the telecommunication industry. Telecommunication outsourcing is an important recent phenomenon, where new operators with inadequate expertise outsource complex network operations to experienced suppliers. The present research employs a multiple case study method to understand the phenomenon of operations outsourcing and to identify success factors of implementation. Two telecommunication operations outsourcing cases implemented by a supplier in Indonesia and Saudi Arabia are studied in detail. These two extensive cases are supplemented by short case studies of three other relevant suppliers. These case studies show that the implementation of operations outsourcing consists of three main stages: preparation, operation and performance review. To achieve success in implementation, the supplier should pay attention to five Critical Success Factors (CSF): namely, engagement model, supplier-customer relationship, quality of service delivery, supplier capability and external factors. The relative importance of these CSF is shown to change between the three stages. The CSF model developed in this study contributes to the few academic studies on operations outsourcing from the supplier's perspectives. Based on the CSF model, guidelines are produced to assist suppliers in successfully implementing operations outsourcing.

    Research areas

  • Subcontracting, Case studies, Telecommunication, Contracting out, Management