IS Outsourcing Relationship: A Review of Literature

By Vivek, Gupta; Sushil | Advances in Management, September 2014 | Go to article overview

IS Outsourcing Relationship: A Review of Literature


Vivek, Gupta, Sushil, Advances in Management


Abstract

Outsourcing Relationship has become important for the success of IS outsourcing projects. Although some studies have explored the issues of IS outsourcing relationship in the past, these studies are mostly limited to the client's perspective. We explore and examine existing outsourcing relationship literature and identify areas for further research. Specifically, we look for research focus from the vendors' perspective. Therefore, two research objectives of this paper are: (1) to examine the existing IS outsourcing relationship literature and (2) to identify and point out opportunities and suggestions for future research. This study will serve as a useful guideline in understanding what has already been accomplished in the field of outsourcing relationship and will provide an insight to develop a successful IS outsourcing relationship for IS vendors undertaking those outsourced projects.

Keywords: Outsourcing, literature review, determinants, relationships, offshore, management, contracts, outcomes.

Introduction

Background and IS outsourcing history: In the last three decades, academic research on information systems (IS) outsourcing has evolved rapidly. The years 1963 and 1989 mark the watershed years that gave a fillip to IS outsourcing. In 1963, Electronic Data Systems (EDS) were hired to perform not only the data processing tasks for Blue Cross of Pennsylvania1, but the outsourcing agreement also transferred responsibility for the Blue Cross IS employees to EDS as well. Prior to this, no other client company had offered both the outsourcing and the staff management to any vendor. Then in 1989, Kodak signed a $1 billion outsourcing deal with International Business Machines (IBM), Business-land and Digital Equipment Corporation (DEC) in which IBM agreed to build and manage a data centre, alongside 300 Kodak employees becoming IBM employees. Never before had such a well-known organization, where IS was considered to be a strategic asset, turned it over to third party providers2. These two events resulted in a slew of big outsourcing deals over the next decades.

Motivation and overview of paper: Outsourcing has evolved from the one vendor - one client arrangement where the vendor provides all IS services to its client, to complex arrangements involving multiple vendors and multiple clients. Moreover, clients have begun to offer parts of the outsourcing work to onshore, nearshore, or offshore vendors. A primary reason that vendors enter into outsourcing arrangements is that it provides them with a relatively long-term revenue stream. Long-term outsourcings arrangements help stabilize vendor business volume and revenue, making planning more predictable and increasing shareholder's comfort levels.

Among the worldwide locations for IS/IT outsourcing, India enjoys a leading position, initially posting an average annual growth rate of about 40 percent3. Outsourcing to India quickly reached $30 billion in 20094 and the export revenue (excluding hardware and BPM) during FY2014 reached USD 72 billion, accounting for by about a 3 million workforce.

However, in spite of about three decades of outsourcing maturity, world over, many IS outsourcing deals fail to deliver the intended benefits and some deals do not even complete their scheduled contract duration5. A key reason for such failures has been found to be the neglect of the relationship component of an outsourcing arrangement6"9. IS outsourcing research is thus gearing towards the management of the client-vendor relationship. Therefore, this paper seeks to encapsulate and synthesize the academic literature on IS outsourcing in general and outsourcing relationship in particular, with a view to elicit key pointers to outsourcing success for Indian IS outsourcing vendors. Two research objectives of this paper are: (1) to examine the existing IS outsourcing relationship literature and (2) to identify and point out opportunities and suggestions for future research. …

The rest of this article is only available to active members of Questia

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Buy instant access to cite pages or passages in MLA 8, MLA 7, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

(Einhorn 25)

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Note: primary sources have slightly different requirements for citation. Please see these guidelines for more information.

Cited article

IS Outsourcing Relationship: A Review of Literature
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen
Items saved from this article
  • Highlights & Notes
  • Citations
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Buy instant access to cite pages or passages in MLA 8, MLA 7, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    Buy instant access to save your work.

    Already a member? Log in now.

    Search by... Author
    Show... All Results Primary Sources Peer-reviewed

    Oops!

    An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.