Impact of configuration on IT outsourcing relationships

This paper tests the extent to which four main factors that help define an organization’s information technology (IT) outsourcing configuration contribute to the quality of IT outsourcing relationships between clients and suppliers. It presents a research model that is tested using an analysis of substantive in-depth interviews with a total of 28 client and supplier managers in four pairs of client and supplier organizations. The findings suggest that a sound outsourcing configuration is important for the successful development of a quality relationship between parties. Thus, organizations seeking to increase their operational excellence and decrease the operational cost of IT outsourcing, and ultimately to improving the success of their IT outsourcing arrangements, must put more emphasis on, and take a more planned approach to, configuring their IT outsourcing arrangements.