How to Steer the IT Outsourcing Provider: Development and Validation of a Reference Framework of IT Outsourcing Steering Processes

Business & Information Systems Engineering, 4, 5, 2012

35 Pages Posted: 16 Jun 2012 Last revised: 13 Jun 2014

See all articles by Nils Urbach

Nils Urbach

University of Bayreuth

Tobias Wuerz

Horváth & Partner GmbH

Date Written: July 1, 2012

Abstract

IT executives entering into information technology (IT) outsourcing arrangements seek various strategic, economic, and technological benefits. However, although several cases of IT outsourcing are considered successful, cases of failure can also be observed. Problems and challenges associated with IT outsourcing often not only relate to the strategic decision whether or not to outsource, but to the operational level as well. Especially organizations with little experience of implementing larger IT outsourcing programs face problems with the steering of external outsourcing providers. In this paper, we propose a reference framework that structures the required processes for an effective steering of IT outsourcing relationships. The research is based on the design science paradigm in information systems research. In a first step, we derive a framework from related literature and knowledge in this particular area. We then undertake extensive fieldwork, including expert interviews and field studies to evaluate our framework and to develop it further. The suggested framework proves to be a viable instrument to support the systematic analysis of current processes and the definition of suitable target processes for the steering of IT outsourcing programs. This paper’s primary contribution therefore lies in providing an applicable instrument for practitioners as well as in extending the existing body of knowledge on IT outsourcing governance.

Keywords: IT outsourcing, steering processes, IT outsourcing governance, design science

Suggested Citation

Urbach, Nils and Wuerz, Tobias, How to Steer the IT Outsourcing Provider: Development and Validation of a Reference Framework of IT Outsourcing Steering Processes (July 1, 2012). Business & Information Systems Engineering, 4, 5, 2012. Available at SSRN: https://ssrn.com/abstract=2065389 or http://dx.doi.org/10.2139/ssrn.2065389

Nils Urbach (Contact Author)

University of Bayreuth ( email )

Universitätsstr 30
Bayreuth
Germany

Tobias Wuerz

Horváth & Partner GmbH ( email )

Cecilienallee 10
Düsseldorf, 40407
Germany

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