Understanding Retention of IT Professionals in Vendor Organizations: A Job Embeddedness Model

Guat Meng Lim and Siew Fan Wong

Abstract

A major challenge facing the IT outsourcing industry is the high rate of turnover among IT professionals.  Skilled and talented IT professionals are assets to organizations.  When they leave, loses in the forms of human, knowledge, and social capital can be so substantial that it affects the operations of both vendors and their clients.  Therefore, an important agenda for vendors is to understand the factors that will attract employees to stay with their current organizations so that effective retention programs can be formulated to keep the best IT employees productively engaged for a long-term.  This paper adapts the Job Embeddedness Model to present a framework that identifies factors binding IT professionals to their current organizations.  The framework captures the working environment of IT professionals in the IT outsourcing industry — where not only are they part of vendor organizations, but they are also highly enmeshed with client organizations.

Keywords: Job retention, job embeddedness model, turnover of IT professionals, IT outsourcing
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