Aspects of Client Vendor Relationship and the Risks Therein

Abstract

Information Technology (IT) is an ever-growing industry. It, therefore, becomes imperative to understand what it entails, the key parties involved, and their relationship, along with the various risks involved. This chapter aims to delve into the underlying concept of service in the IT industry, the service receiver (client) and the service provider (vendor), which are the key parties, and the risks involved by taking a look at the main prevalent outsourcing models. Further, it nails out the major factors that can contribute in building a lasting relationship between the client and vendor. Through extensive literature review, it is observed that several studies have focused on the risks faced by service receivers, but there are very few that mention the risks that service providers also face. This chapter examines both aspects and aims to uncover the risks that service receivers and service providers face in outsourcing engagements. In addition, many articles talk about factors involved in building client-vendor relationship; however, they lack a comprehensive list of factors that, if taken care of, can lead to successful client vendor engagements. This chapter gives a comprehensive view of the main aspects of the IT industry covering the concept of service in IT Industry, the key parties, and the risks along with aspects that build into successful client vendor relationships.