IT outsourcing and knowledge transfer in Malaysia

Information technology outsourcing (ITO) has grown to become a multi-billion dollar business especially with the growth of the e-business paradigm. In education, IT and knowledge outsourcing have been widely used in the last decade. However, there are also risks involved in ITO. An important risk that must to be considered is the knowledge transfer during the ITO activities. The biggest value of knowledge can be achieved in an organization or university when it is shared, as it can help to increase job performance and facilitate new knowledge creation. The aims of this paper are to (1) provide an overview of ITO in institution of higher education, (2) identify factors influencing knowledge transfer in ITO and (3) present a knowledge transfer model for ITO in Malaysia. The findings of the research presented herewith showed that the quality content and accuracy of knowledge to be transferred, distribution capacity of knowledge provider (KP), knowledge receiver´s (KR) perceived benefit and knowledge infrastructures or enablers, ICT infrastructure, staff posting, trust and job satisfaction were perceived as important in determining the success of knowledge transfer during an ITO. Through the findings, a model of knowledge transfer in ITO was developed.