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

Peter Tong

Student thesis: Master thesis


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.

EducationsMSc in Computer Science, (Graduate Programme) Final Thesis
Publication date2011
Number of pages73