The Key Role of Interfaces in IT Outsourcing Relationships

Authors:
Francois Duhamel;Isis Gutiérrez-Martínez;Sergio Picazo-Vela;Luis Felipe Luna-Reyes
Affiliations:
Universidad de las Américas Puebla, Mexico;Universidad de las Américas Puebla, Mexico;Universidad de las Américas Puebla, Mexico;Universidad de las Américas Puebla, Mexico
Venue:
International Journal of Information Technologies and Systems Approach
Year:
2012

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Abstract

Many IT outsourcing operations fail, and when they do not fail they often impose renegotiations over the life of the contract between outsourcers and service providers. Possible remedies include the improvement of knowledge-sharing processes over organizational boundaries between partners, who may learn more about the problems that occur while looking at possible solutions together. Ensuring the right flow of knowledge in the two directions is central to the success of IT outsourcing operations, particularly in the transition stage of the relationship. However, these solutions do not fully acknowledge the different interrelationships between the main factors affecting knowledge transfer in outsourcing relationships in a dynamic way. In this paper, previous research on modeling knowledge-sharing across boundaries is applied to IT outsourcing contracts during the transition phase of the IT outsourcing relationship. Simulation experiments suggest that four reinforcing processes play key roles in the progress of the outsourcing relationship: trust, outsourcers' and providers' knowledge, commitment, and interfacing.