Maturity model for IT outsourcing relationships

Abstract

Purpose -The purpose of this research paper is to present a maturity model for IT outsourcing relationships. Design/methodology/approach -Based on organizational theories and outsourcing practices, this research identified cost stage, resource stage and partnership stage as maturity stages in outsourcing relationships. Findings -First, relationships focus on economic benefits, then there are concerns about access to competence, and finally the development of norms and alliance management are the main focus. Benchmark variables for each stage are suggested. Future research might apply this framework to empirically test the evolution of IT outsourcing relationships. Practical implications -Managing successful IT outsourcing relationships requires a consistent understanding of maturity stage between vendor and client in the relationship. Originality/value -This paper suggests that a long-term IT outsourcing relationship will shift focus as it matures. The original value of the paper is the theory-based stage model having implications for managers in understanding the current and desired situation for an outsourcing relationship.

An Empirical Investigation of Accounting Outsourcing in Iranian SMEs: Transaction Cost Economics and Resource-Based Views

“…"The central theme of transaction costs theory is that the properties of the transaction determine the governance structure" (McIvor, 2000, p.23). TCE is focusing primarily on governance skills whilst the RBV focuses primarily on production skills (Gottschalk and Solli-Saether, 2006). The RBT can aid with analyzing organisational capabilities, which can connect outsourcing with the competitive priorities of the company and performance (McIvor, 2009).…”

“…The TCE indicates the functions that are not firm-specific should be outsourced, while the RBV indicates that functions not critical to core competencies ought to be outsourced (Gilley et al, 2004). In practice, outsourcing is affected by the TCE and RBV (Gottschalk and Solli-Saether, 2006;McIvor, 2009). However, we provide some empirical evidence that a company outsource accounting functions to an external accountant as follows.…”

“…Given that argument, TCE and RBV are employed as independent methods for outsourcing decision (McIvor, 2009), but there is a growing body of literature that shows the RBV and TCE are complementary for outsourcing decision (Poppo and Zenger, 1998;Madhok, 2002;Gottschalk and Solli-Saether, 2006;Espino Rodríguez et al, 2008;McIvor, 2009). TCE focuses on the role of efficient governance (insourcing or outsourcing), and the RBV focuses on competitive advantage (Gottschalk and Solli-Saether, 2006;McIvor, 2009). TCE describes that asset specificity (i.e.…”

Conceptualizing Relational Resources as Critical Factor for IT Outsourcing Success

“…Relational norms are specific behaviors that subjects in transactions assume, to identify, maintain and develop relations under conditions of present and future equilibrium, even during the inevitable situations of contractual insufficiency. The specific relational norms of interest are: flexibility, information exchange and solidarity (Gottschalk, & Solli-Saether, 2006). The role of these norms is to complement and strengthen the contractual norms, which cannot alone govern the unforeseeable future contingencies that could negatively influence the relationship (Goles, & Chin, 2002).…”

Personnel performance assessment in information systems outsourcing environments

“…The importance of outsourcing in the literature has been reflected in the efforts to extend the balance scorecard to include a fifth perspective to hold the business processes subject to outsourcing (Goyal and Metri, 2008), to establish maturity models for outsourcing relations (Gottschalk and Solli-Saether, 2006) and in a much more advanced effort, eSourcing Capability Model (eSCM)-CL, a model of capacities for the management of the contracting of ICT staff in client organizations of services (Hefley and Loesche, 2006).…”