Key Capabilities for Chinese Software Services Vendors in IT Offshore Outsourcing

The research investigates IT offshore outsourcing from U.S/European or Japanese clients to Chinese software services vendors. We take the vendor's perspective and identify six key capabilities by adopting Wade(2004) 's typology, and build the model to describe the relationship between vendor capabilities and market competitive advantage. We have conducted a pilot study based on 30 software vendors in Beijing, and primarily validate the theoretical model by cluster analysis. This paper contributes to the literature by examining the development of key internal capabilities in indigenous Chinese software vendor organizations.