Abstract
This study provides an insight into the duality of client and vendor relationship (CVR) in information technology (IT) outsourcing by adopting a composite view of a subject in activity theory analysis. Evidence in the literature shows a trend that outsourcing relationships have become strategic assets with clients scouting for not only technical outcomes but for business ideas and innovation from their suppliers. Whilst extant literature demonstrates the critical role of outsourcing relationships in outsourcing success and value, the research on IT outsourcing has largely examined outsourcing relationships in general, focusing on the factors, challenges and a one-sided view of the CVR and providing no insights on the relationship between the client and vendor from a composite perspective. To explore this, our study employed an interpretive qualitative case study method and activity theory as the lens. Drawing on hermeneutics to analyse the data, the findings show the need for activity theory to cater for the duality of subjects in a collaborative way. Implications of the study for practice and policy are then provided.
Similar content being viewed by others
References
Adam, I. O. (2017). Work environment virtualization in a developing country higher education context: Activity and agency theory perspective. PhD Thesis, University of Ghana
Alborz, S., Seddon, P., & Scheepers, R. (2003). A model for studying IT outsourcing relationships. In: Proceedings of the 7th Pacific Asia Conference on Information Systems, Adelaide, South Australia (pp. 1297–1313)
Ali, S., & Khan, S. U. (2016). Software outsourcing partnership model: An evaluation framework for vendor organizations. Journal of Systems and Software, 117, 402–425.
Ali, S., Hongqi, L., Khan, S. U., Zhongguo, Y., & Liping, Z. (2017). Success factors for software outsourcing partnership management: An exploratory study using systematic literature review. IEEE Access, 5, 23589–23612.
Ali, S., Hongqi, L., & Abrar, M. F. (2018). Systematic literature review of critical barriers to software outsourcing partnership. In: Proceedings of the 5th international multi‐topic ICT conference (IMTIC), Pakistan: Jamshoro
Ang, S., & Straub, D. W. (1998). Production and transaction economies and IS outsourcing: A study of the US banking industry. MIS Quarterly, 22, 535–552.
Barney, J. (1991). Firm resources and sustained competitive advantage. Journal of Management, 17(1), 99–120.
Bharadwaj, S. S., Saxena, K. B. C., & Halemane, M. D. (2010). Building a successful relationship in business process outsourcing: An exploratory study. European Journal of Information Systems, 19(2), 168–180.
Blumenberg, S., Beimborn, D., & Koenig, W. (2008). Determinants of IT outsourcing relationships: A conceptual model. In: Proceedings of the 41th Hawaii international conference on system sciences, Waikoloa
Bosire, J. K. (2015). A client-vendor relationship perspective of cultural differences on cross-border information technology outsourcing. PhD Thesis, Walden University
Bryson, N. (2000). Structuring IS outsourcing contracts for mutual gain: An approach to analyzing performance incentive schemes. Journal of the Association for Information Systems, 1(1), 9.
de Carvalho, V. D. H., Poleto, T., & Seixas, A. P. C. (2018). Information technology outsourcing relationship integration: A critical success factors study based on ranking problems (P. γ) and correlation analysis. Expert Systems, 35(1), e12198.
Casciaro, T., & Piskorski, M. J. (2005). Power imbalance, mutual dependence, and constraint absorption: A closer look at resource dependence theory. Administrative Science Quarterly, 50(2), 167–199.
Chen, R., Sharman, R., Rao, H. R., & Upadhyaya, S. J. (2013). Data model development for fire related extreme events: An activity theory approach. Mis Quarterly, 37, 125–147.
Cohen, L., & Young, A. (2006). Multisourcing: Moving beyond outsourcing to achieve growth and agility. MA, Harvard Business School Press
Cole, M., & Avison, D. (2007). The potential of hermeneutics in information systems research. European Journal of Information Systems, 16(6), 820–833.
Crawford, K., & Hasan, H. (2007). Demonstrations of the activity theory framework for research in information systems. Australasian Journal of Information Systems, 13(2), 49–68
Cullen, S. (2016). The contract scorecard: Successful outsourcing by design. CRC Press
Cullen, S., Seddon, P. B., & Willcocks, L. (2006). Managing outsourcing: The lifecycle imperative. London School of Economics and Political Science.
Dibbern, J., Goles, T., Hirschheim, R., & Jayatilaka, B. (2004). Information systems outsourcing: a survey and analysis of the literature. ACM SIGMIS Database: the DATABASE for Advances in Information Systems, 35(4), 6–102
Dibbern, J., Chin, W. W., & Heinzl, A. (2012). Systemic determinants of the information systems outsourcing decision: A comparative study of German and United States firms. Journal of the Association for Information Systems, 13(6), 1.
Diesing, P. (1991). How does social science work? Reflections on practice. University of Pittsburgh Press.
Drees, J. M., & Heugens, P. P. (2013). Synthesizing and extending resource dependence theory: A meta-analysis. Journal of Management, 39(6), 1666–1698.
Eisenhardt, K. M. (1989). Agency theory: An assessment and review. Academy of Management Review, 14(1), 57–74.
Engestrom, Y. (1987a). Learning by expanding. Orienta-Konsultit. Helsinki
Engestrom, Y. (1987b). Learning by expanding: An activity-theoretical approach to developmental research. zugl. Diss., Univ. Helsinki, Helsinki
Engeström, Y. (2001). Expansive learning at work: Toward an activity theoretical reconceptualization. Journal of Education and Work, 14(1), 133–156
Flemming, R., & Low, G. (2007). Information systems outsourcing relationship model. Australasian Journal of Information Systems, 14(2), 95.
Gadamer, H. G. (1976). Philosophical hermeneutics. University of California Press
Goles, T. (2002). The impact of the client-vendor relationship on information systems outsourcing success. University of Houston
Goles, T., & Chin, W. W. (2005). Information systems outsourcing relationship factors: Detailed conceptualization and initial evidence. ACM SIGMIS Database: the DATABASE for Advances in Information Systems, 36(4), 47–67.
Gopal, A., & Koka, B. R. (2012). The asymmetric benefits of relational flexibility: Evidence from software development outsourcing. MIS Quarterly, 36(2), 553.
Gopal, A., & Sivaramakrishnan, K. (2008). Research note—on vendor preferences for contract types in offshore software projects: The case of fixed price vs. time and materials contracts. Information Systems Research, 19(2), 202–220.
Gopalakrishnan, S., & Zhang, H. (2019). Client dependence: A boon or bane for vendor innovation? A competitive mediation framework in IT outsourcing. Journal of Business Research, 103, 407–416.
Gould, S. J., & Eldredge, N. (1977). Punctuated equilibria: The tempo and mode of evolution reconsidered. Paleobiology, 3(2), 115–151.
Green, J., Willis, K., Hughes, E., Small, R., Welch, N., Gibbs, L., & Daly, J. (2007). Generating best evidence from qualitative research: The role of data analysis. Australian and New Zealand Journal of Public Health, 31(6), 545–550.
Gregory, R. W., Beck, R., & Keil, M. (2013). Control balancing in information systems development offshoring projects. MIS Quarterly, 37, 1211–1232.
Guest, G., Bunce, A., & Johnson, L. (2006). How many interviews are enough? An experiment with data saturation and variability. Field Methods, 18(1), 59–82.
Gurung, A., & Prater, E. (2017). A research framework for the impact of cultural differences on IT outsourcing. In Global sourcing of services: Strategies, issues and challenges (pp. 49–82). World Scientific.
Hashim, N. H., & Jones, M. L. (2007). Activity theory: A framework for qualitative analysis. In: 4th International Qualitative Research Convention (QRC), Malaysia
Heiskanen, A., Newman, M., & Eklin, M. (2008). Control, trust, power, and the dynamics of information system outsourcing relationships: A process study of contractual software development. The Journal of Strategic Information Systems, 17(4), 268–286.
Hendry, J. (2002). The principal’s other problems: Honest incompetence and the specification of objectives. Academy of Management Review, 27(1), 98–113.
Jain, D. M., & Khurana, R. (2016). A framework to study vendors’ contribution in a client vendor relationship in information technology service outsourcing in India. Benchmarking: An International Journal, 23(2), 338–358. https://doi.org/10.1108/BIJ-04-2014-0029.
Janita, M. S., & Miranda, F. J. (2013). Exploring service quality dimensions in b2b e-marketplaces. Journal of Electronic Commerce Research, 14(4), 363.
Johnsen, R. E., & Lacoste, S. (2016). An exploration of the ‘dark side’associations of conflict, power and dependence in customer–supplier relationships. Industrial Marketing Management, 59, 76–95.
Kaptelinin, V., & Nardi, B. A. (1997). Activity theory: Basic concepts and applications. In: Proceedings of the Computer-Human Interaction (CHI) interest group, Conference on Human Factors in computing systems, Atlanta, Georgia
Kaptelinin, V., & Nardi, B. (2018). Activity theory as a framework for human-technology interaction research. Mind, Culture, and Activity, 25(1), 3–5
Karanasios, S. (2018). Toward a unified view of technology and activity. Information Technology & People, 31(1), 134–155
Karanasios, S., & Allen, D. (2013). ICT for development in the context of the closure of Chernobyl nuclear power plant: An activity theory perspective. Information Systems Journal, 23(4), 287–306.
Kern, T. (1997). The Gestalt of an information technology outsourcing relationship: An exploratory analysis. In: Proceedings of International Conference on Information Systems, Atlanta, Georgia, (pp. 37–57)
Kern, T., & Willcocks, L. (2002). Exploring relationships in information technology outsourcing: the interaction approach. European Journal of Information Systems, 11(1), 3-19
Kietzmann, J. (2008). Interactive innovation of technology for mobile work. European Journal of Information Systems, 17(3), 305–320.
King, W. R., & Torkzadeh, G. (2008). Information systems offshoring: Research status and issues. MIS Quarterly, 32(2), 205–225.
Kroeze, J. H. (2011). Interpretivism in information systems: A postmodern epistemology? All Sprouts Content. 485. https://aisel.aisnet.org/sprouts_all/485
Kuzel, A. J. (1992). Sampling in qualitative inquiry. iry. In B. Crabtree & W. Miller (Eds.), Doing qualitative research (pp. 33-47). Sage
Lacity, & Willcocks, L. P. (2008). Information systems and outsourcing: Studies in theory and practice. Palgrave
Lacity, M. C., Khan, S. A., & Willcocks, L. P. (2009). A review of the IT outsourcing literature: Insights for practice. The Journal of Strategic Information Systems, 18(3), 130–146. https://doi.org/10.1016/j.jsis.2009.06.002.
Lacity, Willcocks, L., & Feeny, D. (2012a). The value of selective IT sourcing. Sloan management review, 37, 13–25
Lacity, M. C., Khan, S., Yan, A., & Willcocks, L. P. (2012b). Mapping the IT outsourcing landscape: Review and future directions. In Willcocks, L. P., & Lacity, M. C. (Eds.), The new IT outsourcing landscape (pp. 25–88). Palgrave Macmillan
Lahmiri, S. (2018). Information technology outsourcing risk factors and provider selection. In: Gupta, M., Sharman, R., Walp, J., & Mulgund, P. (Eds.), Information technology risk management and compliance in modern organizations (pp. 214–228). IGI Global
Lee, J.-N., & Kim, Y.-G. (1999). Effect of partnership quality on IS outsourcing success: Conceptual framework and empirical validation. Journal of Management Information Systems, 15(4), 29–61.
Lee, J.-N., Huynh, M. Q., Kwok, R. C.-W., & Pi, S.-M. (2003). IT outsourcing evolution –: Past, present, and future. Communications of the ACM, 46(5), 84–89.
Leimeister, S., & Krcmar, H. (2008). Exploring relationships in information systems outsourcing: A typology of IS outsourcing relationships. In: Oshri, I., Kotlarsky, J. and Willcocks, L.P. (Eds), Outsourcing Global Services: Knowledge, Innovation and Social Capital (pp. 9-43), Palgrave Macmillan
Leont’ev, A. N. (1978). Activity, consciousness, and personality. Prentice
Linden, R., & Hovestadt, C. (2017). An innovation-focused client-vendor relationship model for IT outsourcing. Pacific Asia Conference on Information Systems (PACIS), Langkawi, Malaysia, p. 197
Linden, R., Schmidt, N., & Rosenkranz, C. (2017). Outsourcing 2.0: Towards an innovation-driven process model for client-vendor relationships in information technology outsourcing. In: Oshri I., Kotlarsky J., Willcocks L. (eds) Global Sourcing of Digital Services: Micro and Macro Perspectives (pp. 39-64). Global Sourcing 2017. Lecture Notes in Business Information Processing, 306. Springer
Linden, R., Müller, M., & Özel, A. (2018). Challenges of client-vendor relationships in information technology outsourcing engagements: An interpretive structural modelling approach. Research Papers. 94. https://aisel.aisnet.org/ecis2018_rp/94
Lioliou, E., & Willcocks, L. P. (2019). The study of information technology outsourcing. In: Global outsourcing discourse (pp. 21–57). Palgrave Macmillan
Mani, D., & Barua, A. (2015). The impact of firm learning on value creation in strategic outsourcing relationships. Journal of Management Information Systems, 32(1), 9–38.
Mann, A., Kauffman, R. J., Han, K., & Nault, B. R. (2011). Are there contagion effects in information technology and business process outsourcing? Decision Support Systems, 51(4), 864–874.
Munkvold, B. E., & Bygstad, B. (2016). The land of confusion–clearing up some common misunderstandings of interpretive research. Paper presented at the NOKOBIT-Norsk konferanse for organisasjoners bruk av informasjonsteknologi
Myers, M. D. (1997). Qualitative research in information systems. Management Information Systems Quarterly, 21, 241–242.
Myers, M. D. (2013). Qualitative research in business and management. Sage.
Myers, M. D., & Newman, M. (2007). The qualitative interview in IS research: Examining the craft. Information and Organization, 17(1), 2–26.
Nahapiet, J., & Ghoshal, S. (1998). Social capital, intellectual capital, and the organizational advantage. Academy of Management Review, 23(2), 242–266.
Oliveira, N., & Lumineau, F. (2019). The dark side of interorganizational relationships: An integrative review and research agenda. Journal of Management, 45(1), 231–261.
Orlikowski, W. J., & Baroudi, J. J. (1991). Studying information technology in organizations: Research approaches and assumptions. Information Systems Research, 2(1), 1–28.
Osei-Bryson, K.-M., & Ngwenyama, O. K. (2006). Managing risks in information systems outsourcing: An approach to analyzing outsourcing risks and structuring incentive contracts. European Journal of Operational Research, 174(1), 245–264.
Oshri, I., Kotlarsky, J., & Willcocks, L. P. (2011). The handbook of global outsourcing and offshoring. Palgrave Macmillan.
Palmatier, R. W., Dant, R. P., Grewal, D., & Evans, K. R. (2006). Factors influencing the effectiveness of relationship marketing: A meta-analysis. Journal of Marketing, 70(4), 136–153.
Paravastu, N. (2007). Effect of trust and risk on IT outsourcing relationship quality and outsourcing success. Drexel University
Patton, M. Q. (1990). Qualitative evaluation and research methods. SAGE Publications, Inc.
Patton, M. Q. (2005). Qualitative research. Wiley
Paulraj, A., & Chen, I. J. (2007). Strategic buyer–supplier relationships, information technology and external logistics integration. Journal of Supply Chain Management, 43(2), 2–14.
Payne, A., & Frow, P. (2017). Relationship marketing: Looking backwards towards the future. Journal of Services Marketing, 31(1), 11–15
Rubin, H. J., & Rubin, I. S. (2011). Qualitative interviewing: The art of hearing data. Sage Publications.
Rui, C., Sharman, R., Chakravarti, N., Rao, H. R., & Upadhyaya, S. J. (2008). Emergency response information system interoperability: Development of chemical incident response data model. Journal of the Association for Information Systems, 9(3), 200–230.
Salancik, G. R., & Pfeffer, J. (1978). A social information processing approach to job attitudes and task design. Administrative Science Quarterly, 23, 224–253.
Sannino, A., & Engeström, Y. (2018). Cultural-historical activity theory. Cultural-Historical Psychology, 14(3), 43–56
Sargent, A. (2006). Outsourcing relationship literature: An examination and implications for future research. In:Proceedings of the 2006 ACM SIGMIS CPR conference on computer personnel research: Forty-four years of computer personnel research: Achievements, challenges & the future (pp. 280–287). Association for Computing Machinery
Schwarz, A., Jayatilaka, B., Hirschheim, R., & Goles, T. (2009). A conjoint approach to understanding IT application services outsourcing. Journal of the Association for Information Systems, 10(10), 1.
Slavova, M., & Karanasios, S. (2018). When institutional logics meet information and communication technologies: Examining hybrid information practices in Ghana’s agriculture. Journal of the Association for Information Systems, 19(9), 775–812.
Søderberg, A.-M., Krishna, S., & Bjørn, P. (2013). Global software development: Commitment, trust and cultural sensitivity in strategic partnerships. Journal of International Management, 19(4), 347–361.
St. John, J., Guynes, C. S., & Vedder, R. (2014). The client–vendor offshore relationship: Success factors. Information Systems Management, 31(2), 120–125.
Suri, H. (2011). Purposeful sampling in qualitative research synthesis. Qualitative Research Journal, 11(2), 63–75.
Tafti, M. H. (2012). Changes in the it outsourcing practice: A client-vendor viewpoint. Issues in Information Systems, 13(2), 146–154.
Talpeanu, A. D. P., & Rusu, L. (2017). Influential factors in IT outsourcing relationship in a Swedish municipality: A client and vendor perspective. International Journal of Innovation in the Digital Economy (IJIDE), 8(3), 1–17.
Uden, L. (2007). Activity theory for designing mobile learning. International Journal of Mobile Learning and Organisation, 1(1), 81–102.
Vorontsova, A., & Rusu, L. (2014). Determinants of IT outsourcing relationships: A recipient–provider perspective. Procedia Technology, 16, 588–597.
Vygotsky, L. S. (1978). Mind in society: The development of higher psychological processes. Harvard University Press.
Walsham, G. (1993). Interpreting information systems in organizations. Wiley.
Walsham, G. (1995). Interpretive case studies in IS research: Nature and method. European Journal of Information Systems, 4(2), 74–81.
Walsham, G. (2006). Doing interpretive research. European Journal of Information Systems, 15(3), 320–330.
Wang, C., & Kaarst-Brown, M. L. (2014). The IT compensation challenge: Theorizing the balance among multi-level internal and external uncertainties. Journal of the Association for Information Systems, 15(3), 111–146.
Wang, L., Zhang, C., & Jiang, F. (2019). Matching governance mechanisms with transaction-specific investment types and supplier roles: An empirical study of cross-border outsourcing relationships. International Business Review, 28(2), 316–327.
Wang, J.-J., Sasanipoor, N., & Wang, M.-M. (2020). The influence of PRINCE2 standard on customer satisfaction in information technology outsourcing: An investigation of a mediated moderation model. Journal of Enterprise Information Management, 33(6), 1419–1442
Waycott, J., Scheepers, R., Davis, H., Howard, S., & Sonenberg, L. (2014). The individual in multiple interacting activity systems: IT-supported diabetes management. Information Technology & People, 27(4), 463–481
Weeger, A., & Ulrich, H. (2016). How contradictions facilitate evolutionary transformation: An exploration into the dynamics of business-IT alignment from the perspective of activity theory. In Proceedings of the 24th European Conference on Information Systems. Istanbul, Turkey
Weinhardt, C., Anandasivam, A., Blau, B., & Stosser, J. (2009). Business models in the service world. IT Professional, 11(2), 28–33. https://doi.org/10.1109/MITP.2009.21.
Willcocks, L. P., & Lacity, M. C. (2016). The new IT outsourcing landscape: From innovation to cloud services. Springer
Willcocks, L., Fitzgerald, G., & Lacity, M. (1996). To outsource IT or not? Recent research on economics and evaluation practice. European Journal of Information Systems, 5(3), 143–160
Williamson, O. E. (1991). Comparative economic organization: The analysis of discrete structural alternatives. Administrative Science Quarterly, 36, 269–296.
Zhang, Q., Cheng, L., & Boutaba, R. (2010). Cloud computing: State-of-the-art and research challenges. Journal of Internet Services and Applications, 1(1), 7–18.
Zimmermann, A., & Ravishankar, M. (2014). Knowledge transfer in IT offshoring relationships: The roles of social capital, efficacy and outcome expectations. Information Systems Journal, 24(2), 167–202.
Author information
Authors and Affiliations
Corresponding author
Additional information
Publisher’s Note
Springer Nature remains neutral with regard to jurisdictional claims in published maps and institutional affiliations.
Rights and permissions
About this article
Cite this article
Effah, J., Adam, I.O. Examining Client-Vendor Relationship in the Outsourcing of a Work Environment Virtualisation: An Activity Theory Perspective. Inf Syst Front 24, 1585–1599 (2022). https://doi.org/10.1007/s10796-021-10166-0
Accepted:
Published:
Issue Date:
DOI: https://doi.org/10.1007/s10796-021-10166-0