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Critical success factors in relationship management for services outsourcing

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Abstract

This study examines the relationship between outsourcing motives, supplier–customer relationship and perceived customer value in non-core services outsourcing. 1,757 companies were randomly selected. 234 valid questionnaires were returned (13.4 % response rate). The structural equation method was used to obtain the best fit model. The most significant contribution of this study is that ‘relationship interaction’ (communication, cooperation, coordination, collaboration, conflict resolution and integration activities) has a greater impact on customer perceived value than ‘relationship quality’ (loyalty and trust) in services outsourcing. The perceived customer value is reflected in improved services quality, reliability and agility rather than the expected cost savings.

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Authors and Affiliations

  1. MGSM, Macquarie University, North Ryde, NSW, Australia

    Joan Rhodes

  2. University of Sydney Business School, ITLS, University of Sydney, Sydney, NSW, 2006, Australia

    Peter Lok

  3. Oracle, Singapore, Singapore

    Wilson Loh

  4. Macao University of Science & Technology, Macao, China

    Vincent Cheng

Authors
  1. Joan Rhodes
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  2. Peter Lok
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  3. Wilson Loh
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  4. Vincent Cheng
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Corresponding author

Correspondence to Joan Rhodes.

Appendix: Sample items of survey

Appendix: Sample items of survey

1.1 Section D: Motive of outsourcing

Please circle a number, which best reflects your opinion.

The following section is about the motive of service outsourcing for your organisation’s outsourced business activities.

Motives for service outsourcing of your organisation business activities?

Not important

Important

Determining factor

1

Reduce cost for outsourced component(s)

1

2

3

4

5

2

Improve company focus

1

2

3

4

5

1.2 Section E: Supplier–customer relations

Please circle a number which best reflects your opinion.

The following section is about the relationship attributes of between your service supplier and your organisation.

Relationship Quality

Strongly disagree

Neutral

Strongly agree

6

Both parties are highly committed to the relationship

1

2

3

4

5

7

Both parties are willing to commit resources to sustain the relationship

1

2

3

4

5

8

The two parties are able to reach agreement on most matters

1

2

3

4

5

The following section is about the relationship processes of between your service supplier and your organisation.

Relationship Interaction

Strongly disagree

Neutral

Strongly agree

18

Both parties in the relationship communicate well with each other

1

2

3

4

5

19

Both parties in the relationship effectively exchange information with each other

1

2

3

4

5

1.3 Section F: Customer perceived value

Please circle a number which best reflects your opinion.

The following section is about the customer benefits of the service outsourcing.

Customer Benefits

Strongly disagree

Neutral

Strongly agree

29

Compared to the internal resources, the supplier provides us with better service quality

1

2

3

4

5

30

Compared to the internal resources, the supplier meets our quality standards better

1

2

3

4

5

31

Compared to the internal resources, the supplier’s service is more reliable

1

2

3

4

5

Costs of the outsourced services

Supplier’s cost is much lower

Supplier’s cost is the same

Supplier’s cost is much higher

1

Reduce cost for outsourced component(s)

1

2

3

4

5

2

Improve company focus

1

2

3

4

5

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Rhodes, J., Lok, P., Loh, W. et al. Critical success factors in relationship management for services outsourcing. Serv Bus 10, 59–86 (2016). https://doi.org/10.1007/s11628-014-0256-8

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