Exploring the organizational structure and coordination of multi-national it outsourcing vendors

Abstract

This paper explores the organizational structure and coordination mechanisms used by large ITO-vendor organizations. Five global ITO-vendor organizations were studied. The results show that all five use a "front-back hybrid" structure. All five vendors divide their front-end labor pool according to the types of customers that they serve. On the back-end, their labor pools are organized around the functions offered by the company. Such a front-back structure enables them to focus simultaneously on developing distinctive capabilities, capturing scale and nurturing long-lasting relationships with their customers. To deliver each customer's requirements, resources from the various front and back..