Abstract

In this paper, I contend that IT outsourcing management has two sides. While the hard side refers to the contract, the soft side refers to trust. My analysis of 50 IT outsourcing efforts shows that both the hard side and the soft side are key to success. The hard side and the soft side are often used separately. The greater the contractual hazards that characterize an IT outsourcing operation, the more likely the soft side will be preferred over the hard side. However, the hard side and the soft side can also be simultaneously used. In that case, the interplay between these two techniques can lead to a virtuous circle. Finally, IT outsourcing that are managed neither through the hard side nor through the soft side are doomed to fail.

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