Factors Influencing Knowledge Transfer in Onshore Information Systems Outsourcing in Ethiopia

Knowledge transfer in onshore information systems (IS) outsourcing projects in Africa is an important but under-researched phenomenon. This study focuses on the client-vendor perspective and examines the factors that influence knowledge transfer in onshore information systems outsourcing in Ethiopia. Conceptually, knowledge-based perspectives of IS outsourcing is used to identify an initial set of factors to frame the empirical study. This is followed by semi-structured interviews with ten project managers. The findings indicate that five key factors, namely mutual absorptive capacity, mutual learning intent, mutual trust, mutual disseminative capacity and project staff turnover influence knowledge transfer in outsourced IS projects. The results suggest that development and management of the resources, processes and behaviors implied by these factors are vital to ensure successful inter-organizational knowledge transfer and to reverse or minimize the failure rates of outsourced IS projects. The study concludes with implications for research and practice