Performance of ICT outsourcing: Analyzing client-vendor value-drivers and relationship quality

Abstract

This study seeks to understand how the performance of outsourced ICT projects can be measured, in an attempt to ascertain how the attributes of client-vendor relationships might a ect project performance. Literature was consulted through a content analysis of 39 research articles. It is theorized that value drivers (knowledge-sharing and relative competence level) and relationship quality (relational governance) in uence project performance outcome. However, an analysis based on a quantitative em- pirical study suggests that project performance, measured in terms of cost savings, is negatively in uenced by relational attributes and knowledge- sharing between client and vendor in terms of methodological capabilities, mediated by the vendor to client knowledge-sharing about HRM capabili- ties. Furthermore, time compliance was found to be negatively a ected by relational attributes of the client-vendor relationship and vendor to client knowledge-sharing about technological capabilities. Finally, quality improvements was found to be negatively a ected by vendor to client knowledge-sharing in terms of HRM. Limitations of the ndings and the implications for research and IT outsourcing are then discussed.