A framework to study vendors’ contribution in a client vendor relationship in information technology service outsourcing in India

Abstract

Purpose – The information technology (IT) industry has been continuously expanding. This has resulted in promoting outsourcing of work by clients to vendors. Most of the published research has focussed on when clients should start outsourcing, what to outsource, criteria for vendor selection, etc., however the vendor side of the relationship has been mostly ignored. The purpose of this paper is to delve deep into the vendors’ side and what aspects a vendor needs to consider in order to maintain a good relationship with the clients. Design/methodology/approach – The research design of the paper is to use literature survey to define the components of the client vendor relationship (CVR), identify the parameters impacting the relationship, establish correlation between the independent variables and the dependent variable; subsequently to propose a framework for the CVR. Findings – The findings have been that – communication, technical value addition, knowledge sharing and client vendor adaptability are vital to any outsourcing engagement and if the vendor is able to get good knowledge transfer of the application at hand and the business domain, it can perform better. Vendors, which proactively resolve issues, ensure stable deliveries before time and identify improvements in the software outside the work assigned maintain better relationship. Further a vendor must be adaptable to clients, cultural, time zone differences, should provide a good project manager and be ready to change tools, resources as per client needs. As long as the vendor is able to ensure the above, the stability of the client country and need for information security is not as important to vendors. Research limitations/implications – The study has limitations as it focusses on the vendors’ side and is inclined toward Indian vendors’ perspectives. Future research can include client as well and can be conducted for a different geography. Originality/value – The research work is original and adds value to the IT service outsourcing industry by identifying the parameters which need to be monitored for a sustainable CVR.

Benchmarking the triple-A supply chain: orchestrating agility, adaptability, and alignment

“…Lee (2004) emphasizes key components of adaptability such as tracking market changes, enhancing flexibility through product modularization and matching supply chain design for demand patterns of different product lines. Like agility, scholars emphasize the importance of adaptability to compete in modern markets ( Jain and Khurana, 2016).…”

Knowledge Connectivity in an Adverse Context: Global Value Chains and Pakistani Offshore Service Providers

“…Project durations range from 2 to 5 years. Software applications are developed for a range of platforms, from desktop computers to various web-based platforms, to smartphones (Currie and Seltsikas 2001;Jain and Khurana 2016;Vitari and Ravarini 2009). OSPs are required to possess relatively high levels of technical capabilities and experience (Duan et al 2010;Duan and Zhu 2011;Lema 2010Lema , 2011Lema , 2015Xudong et al 2008).…”

IT outsourcing, knowledge transfer and project transition phases

“…The negative consequences of failed knowledge transfer during the opening transition phase of the ITO initiative become manifest through extended project timelines because the vendor partner is not able to deliver contract objectives as planned (Jain and Khurana, 2016). The negative consequence of failed knowledge transfer at the end of the ITO initiative becomes manifest through failed or crippled business processes when the client is not able to support the solution once the ITO partnership is severed (Kristjánsson et al, 2014;Santhanam et al, 2007;Teo and Bhattacherjee, 2014).…”

“…Insufficient attention to knowledge transfer was suggested as the cause of offshore vendor partners being less able to form sufficient domain knowledge frameworks that foster the translation of the client's domain knowledge into actions that add value to the client (Strasser et al, 2019). Failed knowledge transfer equates to failed strategic goals and wasted Blumenberg et al (2009) Focus on vendor transition practices Beulen et al (2011) Client transition practices Chang and Gurbaxani (2012) Productivity impacts of outsourcing IT-related knowledge Holzmann (2013) Trends in project management literature on knowledge sharing Jain and Thietart (2013) Knowledge-based transaction cost, managers' decision framing Khan and Khan (2013) Vendor contract planning, management and execution Sudhakar (2013) Client and vendor critical success factors in ITO project Gorla and Somers (2014) Focus on the effects of ITO initiatives on IT project success Runar Edvardsson and Durst (2014) Understanding the role that knowledge plays in the ITO decision Luong and Stevens (2015) Client and vendor critical success factors in ITO projects González et al (2016) Validity of ITO reasons and risk over time Jain and Khurana (2016) Vendor perspective of success factors of the client-vendor relationship Hodosi et al (2017) Focus on ITO impacts from loss of tacit knowledge exchange Mehta and Mehta (2017) Vendors critical success factors for offshore ITO success De Carvalho et al (2018) Client and vendors contractual and relational governance KT Outcomes Chen et al (2010) Barriers to successful cross-cultural knowledge transfer Al-Salti and Hackney (2011) Vendor perspective of KT success factors Lacity et al (2011) KT incentives for both contracting parties Park, Im, and Kim (2011) Behavioral process of knowledge transfer between vendor and client Williams (2011) Vendor learning during opening transition phases of the ITO project Deng and Mao (2012) Vendor's' learning mechanisms in offshore ITO projects Gang, Shaobo, and Nsakanda (2012) Moderating effect of global project complexity on KT performance Chen et al (2013) Knowledge transfer and knowledge building in offshored ITO projects Betz et al (2014) Focus on KT best practices…”

“…Cair o Battistutti and Bork, 2017;Jain and Khurana, 2016;Luong and Stevens, 2015;Pantic-Dragisic and Söderlund, 2018). Knowledge transfer during the beginning of the project is not a critical concern for inhouse project teams that usually have prior knowledge of the organization's practices and processes, as well as sufficient domain knowledge to meet the project objectives (Kristjánsson et al, 2014).…”