Abstract
The relational resources represent key assets for outsourcing success. Achieving full potential in the development and exploitation of relational resources in outsourcing can be understood as occurring in two closely intertwined phases: i. during the choice of the provider; ii. through the governance of the relation that develops over the execution of the contract. The current paper aims to provide conceptual insights into these two phases, as they apply to the particular area of companies’ IT outsourcing. A first objective is to illustrate the role of relational resources in determining the ultimate degree of success in IT outsourcing and to discuss its potential as an “instrument to address risk”. A second objective is to outline managerial criteria for correct choice of the IT provider and for appropriate direction of client-vendor relations over the course of the resulting contract execution. The main findings of this study show that the paradigmatic shift from a transaction-based outsourcing to a partnership-based outsourcing gives centrality to the contract management and on-going management. On this point, relational resources have become a critical factor for IT outsourcing success, and they have to be considered as a tool to address the risks of IT outsourcing. Concerning the managerial implications the main finding is the need to use the “relational requisites” rather than “subjective requisites” in the evaluation and choice of potential IT provider.
Highlights
Since the late 1980s the outsourcing of IT services has seen enormous growth (Beasley, Bradford, & Dehning, 2009) and remarkable change in objectives, content and forms (Popoli, 2011)
If we exclude the initial risks related to erroneous externalization of an item that should not have been externalized, the remaining risks in IT outsourcing are situated in the two macro-stages of implementing the choice and the third of managing the relationship, meaning in the stages where relational resources can play a role
This paper focuses on strategic IT outsourcing, meaning the externalization of functions, activities or processes that are closely tied to the company’s core business and have high strategic value and strong impact on the creation of value
Summary
Since the late 1980s the outsourcing of IT services has seen enormous growth (Beasley, Bradford, & Dehning, 2009) and remarkable change in objectives, content and forms (Popoli, 2011). These causes of failed outsourcing could perhaps have been avoided if the principles and practices of risk management had been more active among the companies, in the stages of contract management and on-going management These stages serve in the initial construction and subsequent development of conditions of mutual trust, cooperation, and harmonization in client-vendor strategies and objectives (Lee, Miranda, & Kim, 2004; Qi, & Chan, 2012). The objective is to illustrate the centrality of relational resources in IT outsourcing, the practices for externalization of functions or internal processes with an elevated impact on the value of the outsourcing company, which are closely related to the core business (strategic IT outsourcing) In these cases the need for relationality and partnership is very high, since the success of outsourcing in these situations is based on the sharing and exchange of knowledge (Bahli, & Rivard, 2005; Ikediashi et al, 2012; Larsen et al, 2013). The concluding section of the paper indicates further research directions
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
