Outsourcing success in the eye of the beholder: Examining the impact of expectation confirmation theory on IT outsourcing

Abstract

Expectations have been found to exert a significant impact on client satisfaction in outsourcing projects and have been utilized to understand how individuals accumulate experiences and develop beliefs. In this study, we examine the impact of expectations on IT outsourcing success. Although extant studies identify multiple potential expectations, the expectations construct is often viewed as unidimensional with expectations examined at a general level. Furthermore, our multidisciplinary literature review indicates a gap in the literature regarding which expectations to employ. We therefore draw upon the Expectation Confirmation Theory (ECT) to determine a parsimonious set of expectations that combine to influence outsourcing success. Through an international survey of chief information officers (CIOs) and other senior IT outsourcing practitioners, we demonstrate the impact of expectations on IT outsourcing success. Moreover, we evidence that the should, minimally acceptable, and intolerable expectations can be used to predict outsourcing success. This study contributes to the outsourcing literature, specifically, and the multidisciplinary ECT literature, generally, by evaluating the multi-faceted nature of expectations. The results have practical implications for clients and vendors engaged in IT outsourcing and those who engage in expectation management.