Exploring the Competitiveness of Cambodia as an IT Outsourcing Destination

Exploring the Competitiveness of Cambodia as an IT Outsourcing Destination

Karsten Eskelund, Helena Grunfeld, Phal Des
Copyright: © 2020 |Pages: 23
DOI: 10.4018/JGIM.2020040102
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Abstract

Using assessment criteria from the A.T. Kearney global services location index, the authors explore Cambodia's competitiveness in the global IT outsourcing market (ITO), identifying how the country could become more competitive. The findings are discussed from the perspective of the Heeks and Nicholson software export success model, assessing Cambodia from a national competitiveness perspective. With ITO's export revenue and skills development potential, it is important to understand why Cambodia is not considered a significant ITO destination and what the country can do to increase its competitiveness in this area. This paper is useful for practitioners considering Cambodia as an ITO destination, for the Cambodian government as a guide to policy measures for increasing its competitiveness as well as for IT researchers, who could complement the study with primary data and development the conceptual approaches applied in this article, whether in Cambodia or other developing countries.
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Cambodia – Relevant Background Information

Cambodia’s population is approximately 15 million, with a median age of 24.5 years (National Institute of Statistics, 2013). Approximately 80% of households live in rural areas (Asian Development Bank, 2014). During the genocide under the Khmer Rouge (1975-79), Cambodia lost approximately one fifth of its population (Chandler, 2008), particularly the elite, middle class, the educated, city dwellers and professionals (Lambourne, 2013). By 1991, at the time of the Paris Peace Accords, much of Cambodia’s physical infrastructure was destroyed and the country lacked important attributes of a modern state, such as a legal system with property rights, trusted currency, civil service, education system and civil society (Naron, 2012). Low priority was given to higher education during the immediate post-conflict period, when most emphasis was placed on restarting primary and secondary education (Ahrens & McNamara, 2013).

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