Abstract
This papers shows that the management of contractual relationships in IS/IT outsourcing is not only receiving greater attention in academic research, but that it has also moved into focus of companies with high outsourcing degrees. This shift of management attention is accompanied by observable changes in IT organizations’ design, revealing an underrepresented but promising research topic. While prior research has predominantly explored single aspects, for example, supplier selection or relationship building, this article takes a more holistic approach on IT supplier relationship management (SRM) with a focus on organizational design. A conceptual framework, covering three core elements of organizational design, strategy, structure and process, guided the multiple case study on IT SRM in five client IT organizations. One key finding from sourcing strategy is that IT organizations have in parts significantly and abruptly reduced their number of suppliers in the last years, a phenomenon typically well known in the automobile industry. With regard to structure, different organizational models are presented, varying upon their degree of centralization and mode of sourcing. The concept of a hybrid (centralized-decentralized) structure, where a central unit fulfills SRM activities, was shown to be the predominant model within our case organizations. Design and potential benefits of this barely examined model are discussed in detail and empirical examples are provided respectively. As a third organizational design component, formal processes and lateral connections are presented as a means to bridge barriers between organizational entities central to IT SRM. Finally, various opportunities for future research are illustrated.
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Acknowledgments
This study and paper was extensively discussed in a series of meetings and extensive exchanges over a period of a year. The authors want to thank Heiko Russow, Dr. Christoph Klingenberg and Dr. Michael Frank for their valuable comments and support during this time. The authors are also grateful to Prof. Mary Lacity, Prof. Leslie Willcocks and anonymous reviewers for providing their valuable comments and suggestions, which have greatly improved the paper. Without the efforts and openness of our interview partners, whose names cannot be mentioned here without violating the anonymity of the case companies, this study would not have been possible – we are very grateful for the time each of them spent on this work.
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Kaiser, J., Buxmann, P. (2017). Organizational Design of IT Supplier Relationship Management: A Multiple Case Study of Five Client Companies. In: Willcocks, L., Lacity, M., Sauer, C. (eds) Outsourcing and Offshoring Business Services. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-319-52651-5_6
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