Mitigating the Impacts from the Challenges that Arise in IT Outsourcing Relationships

In modern business world, Information Technology (IT) outsourcing is a major trend, with an annual growth rate of over 20%. The current literature on IT outsourcing show benefits, but also evidence that many of those involved in outsourcing are not satisfied with the results. One approach to solve issues is to develop guidelines, policies, and management practices. There are some guidelines in the literature that propose ways to improve the outsourcing process and hopefully the outcome. The current guidelines are formulated at a strategic level and do not address the individual interaction between outsourcing parties. Thus, the purpose of this paper is to propose guidelines to aid individuals who are in regular contact with those at the outsourced unit. A case study was conducted with a multinational firm to develop and test a set of IT Outsourcing Guidelines. The guidelines were developed and presented as recommendations with regard to improving IT outsourcing relationships between their employees and those at the IT Helpdesk in India. Generally, guidelines were perceived as beneficial and they reduce of the issues that arise during IT outsourcing relationships and the concluding recommendations are: 1) An organisation wide key performance indicator regarding personal interaction with the IT Helpdesk. 2) A standard mouse pad or desk mat showing the organisations IT Outsourcing Guidelines. 3) A mandatory call script or online technical registration form for technical issues.