Maturity model for IT outsourcing relationships
| Pages | 200-212 |
| DOI | https://doi.org/10.1108/02635570610649853 |
| Published date | 01 February 2006 |
| Date | 01 February 2006 |
| Author | Petter Gottschalk,Hans Solli‐Sæther |
| Subject Matter | Economics,Information & knowledge management,Management science & operations |
Maturity model for IT outsourcing
relationships
Petter Gottschalk and Hans Solli-Sæther
Department of Leadership and Organization Management, Norwegian School
of Management BI, Oslo, Norway
Abstract
Purpose – The purpose of this research paper is to present a maturity model for IT outsourcing
relationships.
Design/methodology/approach – Based on organizational theories and outsourcing practices, this
research identified cost stage, resource stage and partnership stage as maturity stages in outsourcing
relationships.
Findings – First, relationships focus on economic benefits, then there are concerns about access to
competence, and finally the development of norms and alliance management are the main focus.
Benchmark variables for each stage are suggested. Future research might apply this framework to
empirically test the evolution of IT outsourcing relationships.
Practical implications – Managing successful IT outsourcing relationships requires a consistent
understanding of maturity stage between vendor and client in the relationship.
Originality/value – This paper suggests that a long-term IT outsourcing relationship will shift
focus as it matures. The original value of the paper is the theory-based stage model having
implications for managers in understanding the current and desired situation for an outsourcing
relationship.
Keywords Communicationtechnologies, Outsourcing, Benchmarking
Paper type Conceptual paper
Introduction
Stages of growth models have been used widely in both organizational research and
information technology management research (Nolan, 1979; Earl, 2000; Housel and
Bell, 2001; Gottschalk, 2005). According to King and Teo (1997), these models describe
a wide variety of phenomena – the organizational life cycle, product life cycle,
biological growth, and so forth. These models assume that predictable patterns
(conceptualized in terms of stages) exist in the growth of organizations and in the
growth of relationships among organizations.
A three-stage model for the evolution of an outsourcing relationship is proposed.
The purpose of the model is both to understand the current situation in the relatio nship
in terms of a specific stage and to develop strategies for moving to a higher stage in the
future. The model is based on several management theories. The first stage is the cost
stage. This stage is based on transaction cost theory, neoclassical economic theory,
contractual theory, theory of firm boundaries and agency theory. The second stage is
the resource stage. This stage is based on core competencies theory and resource-based
theory. The third and final stage is the partnership stage, which is based on
partnership and alliance theory, relational exchange theory, stakeholder theory, and
social exchange theory.
This research applies cumulative theory that suggests stages of growth over time in
organizational development (Frankfort-Nachmias and Nachmias, 2002; Nunnally and
The current issue and full text archive of this journal is available at
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IMDS
106,2
200
Industrial Management & Data
Systems
Vol. 106 No. 2, 2006
pp. 200-212
qEmerald Group Publishing Limited
0263-5577
DOI 10.1108/02635570610649853
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