Critical processes in developing client-vendor relationship in the case of offshore IT/IS outsourcing

Abstract

Information technology (IT) offshoring grows rapidly along with the availability of large number of highly capable IT vendors in developing countries. To be able to play a significant role in the global IT market through offshore IT outsurcing, it is necessary that vendors are capable in building a good relationship with their clients. In this study, we examine the critical processes for developing a sustainable relationship with client, from an IT vendor perspective. The aim of the study is to develop a framework that described a way towards developing a sustainable relationship between vendor and client in the context of global outsourcing. The framework developed describes that in order to achieve a sustainable relationship with a client, it is necessary that a vendor first realizes a successful project which brings satisfaction to the client. When a successful project is realized, it can be a beginning for the development of a longer term relationship. A case study in one IT company in Indonesia was executed to explore stages and processes in the relationship development process. The framework consists of two stages. The two stages i.e. project realization and relationship building. For each stage, a number of critical processes were identified. Critical process identified for the project realization stage are software development and project management while critical processes for the relationship building stage include client business development, client relationship management, and human resources management.