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How to Steer the IT Outsourcing Provider

Development and Validation of a Reference Framework of IT Outsourcing Steering Processes

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Abstract

IT executives entering into information technology (IT) outsourcing arrangements seek various strategic, economic, and technological benefits. However, although several cases of IT outsourcing are considered successful, cases of failure can also be observed. Problems and challenges associated with IT outsourcing often not only relate to the strategic decision whether or not to outsource, but to the operational level as well. Especially organizations with little experience of implementing larger IT outsourcing programs face problems with the steering of external outsourcing providers. In this paper, we propose a reference framework that structures the required processes for an effective steering of IT outsourcing relationships. The research is based on the design science paradigm in information systems research. In a first step, we derive a framework from related literature and knowledge in this particular area. We then undertake extensive fieldwork, including expert interviews and field studies to evaluate our framework and to develop it further. The suggested framework proves to be a viable instrument to support the systematic analysis of current processes and the definition of suitable target processes for the steering of IT outsourcing programs. This paper’s primary contribution therefore lies in providing an applicable instrument for practitioners as well as in extending the existing body of knowledge on IT outsourcing governance.

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Authors and Affiliations

  1. EBS Business School Institute of Research on Information Systems (IRIS), EBS Universität für Wirtschaft und Recht, Konrad-Adenauer-Ring 15, 65187, Wiesbaden, Germany

    Nils Urbach

  2. Horváth & Partner GmbH, Cecilienpalais Cecilienallee 10, 40474, Düsseldorf, Germany

    Tobias Würz

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  1. Nils Urbach
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  2. Tobias Würz
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Correspondence to Nils Urbach.

Additional information

Accepted after two revisions by Prof. Dr. Rosemann.

A previous version of this paper has been published in the Proceedings of the European Conference on Information Systems in 2011 (Urbach and Würz 2011).

This article is also available in German in print and via http://www.wirtschaftsinformatik.de: Urbach N, Würz T, (2012) Effektives Steuern von IT-Outsourcingdienstleistern. Entwicklung und Überprüfung eines Referenzmodells für Steuerungsprozesse im IT-Outsourcing. WIRTSCHAFTSINFORMATIK. doi: 10.1007/s11576-012-0336-0.

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Urbach, N., Würz, T. How to Steer the IT Outsourcing Provider. Bus Inf Syst Eng 4, 247–259 (2012). https://doi.org/10.1007/s12599-012-0231-7

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