Determinants of trust in computer-mediated offshore software-outsourcing collaboration

Abstract

Vendors and clients collaborate on outsourcing projects through virtual teams. Trust is an important indicator of mutual relationships that lead to successful projects. This study’s objective is to investigate the determinants of trust in different stages of collaboration during offshore software-development outsourcing. Using a case study approach to collect data, we find that reputation, a cognition-based trust factor, influences clients’ trust in vendors in the team-forming stage. Responsible team climate, a knowledge-based trust factor, impacts clients’ trust in vendors in the team-storming and norming stages of software design and development. Structural assurance, an institutional trust factor, encourages vendors’ trust in clients in the same team-storming and norming stages of software design and development. Benefit, a calculative-based trust factor, influences vendors’ trust in clients in the team-performing stage of software delivery and implementation. Our research findings have implications for software-outsourcing collaboration theories and practices and may have implications beyond that sphere, including team building in multiple contexts and environments.