Drivers Enabling Value Co-creation: A Study of Select IT-services Outsourcing Firms (Client vis-à-vis Service Provider)

Abstract

The phenomenon of value creation is witnessing a shift towards value co-creation, particularly in collaborative relationship. This study explores and prioritizes drivers enabling value co-creation from the perspectives of client and service provider in the context of IT-services outsourcing. An extensive literature review and subsequent pilot study suggest six probable value drivers that are further, statistically validated and prioritized. The unit of analysis is front-line professionals, working with either party. A web-based survey was administered to collect data from 256 respondents, drawn using judgemental sampling. Strategic Intent and Service Actualization are found to be significant and common value drivers for both parties (client and service provider), though with different priorities. The other significant value drivers are found to be Collective Capabilities for client and Intrapreneurship for service provider (these value drivers are not common to the client and service provider). This study reiterates and crystallizes the understanding of value co-creation process in the context of IT-services outsourcing. The identified drivers would enable practitioners to understand and to reconcile the drivers for client(s) and service provider(s) in order to realize the respective value outcome. The commonality of two value drivers; strategic intent and service actualization for both clients and service providers indicates the opportunity for co-creation of value.