Introduction

Abstract

The provision of IT outsourcing services has shown a rapid increase over the last two decades. Because a growing number of firms now outsource their IT function, the IT landscape is becoming increasingly varied, with a wide range of outsourcing arrangements. Important aspects that affect outsourcing arrangements include relationship models, contract management, off-shoring, and success/failure scenarios. Since these aspects have a significant effect on service provider organizations, regular communication among clients and providers becomes more important. Clients have to deal with market dynamism, uncertainty and change in their environment, influencing client organization strategy, focus, needs, and market positioning. Therefore, clients are likely to discuss market developments and business needs with their service providers on a regular basis. This illustrates the relevance of the dyadic inter-firm relationship between service providers and client organizations. However, few studies in the field of outsourcing relations include the views of providers which is in sharp contrast to the overwhelming amount of research that focuses on the client side. The focus in this book is on IT outsourcing from the provider perspective. Providers face serious challenges in their relationship with clients in IT outsourcing arrangements. In particular, service providers are struggling to offer sustainable IT performance for their clients. A lack of provider performance will result in disturbances on the client side.

Suppliers also need to work on their strategies and capabilities if they are to sustain the more collaborative relationships that clients increasingly demand, and deliver meaningfully on an innovation as well as a cost and service agenda.

(Leslie Willcocks)