Information Technology Outsourcing Policy Management: A Case Study of Malaysia

Information technology outsourcing practice is enshrined in numerous problems one of such problems is policy management. Due to economic benefits derived by government and organisations from ITO it is inevitable for any government or organisation to protect interest of the nation or organisation’s vision and mission respectively. Policy management guides business transactions between two or more interested parties and also the stakeholders, therefore it is imperative for the parties to operative successfully only in an environment where operational policies are realistic at the same time appealing. This research looks into the effect of Malaysian government policies on ITO practices and its impact of Malaysian ITO community, in term of level of awareness among the big and small-and-medium- scale-enterprise, this research also investigates the contribution of policy in building an effective ITO success model by using India ITO policy as benchmark. This research finds out that government policy alone cannot be effective if tangible incentives and amenities were not in-place. It also finds out that any negative ITO policies are detrimental to failures recorded in the implementation of ITO models. Interviews were conducted among some ITO suppliers in Malaysia and MDeC. Comparison between Malaysia and India is based on materials available on both countries (research materials, write-up and books).