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As the industry for global sourcing of IT and IT-enabled services has developed, many studies have explored ways of evaluating supplier’s capabilities and managing the sourcing process (Willcocks & Lacity, 2007). Also, some research has addressed the soft side of global sourcing, including innovation in relationships, social capital, and knowledge (Oshri, Kotlarsky, & Willcocks, 2008). Further, relevant research has paid special attention to knowledge processes in globally distributed contexts, which typically occurs in the form of knowledge transfer/sharing, knowledge-based coordination, and expertise management (Rottman, 2008; Kotlarsky, Oshri, & Van Fenema, 2008). Research findings show that global sourcing of IT services should be treated as a context-dependent scenario (Oshri, Kotlarsky, & Willcocks, 2008) where country contexts, such as national culture, government policies, political situation, economic conditions, technological environments, firm strategies, etc. should be considered (Seliem et al., 2003; Aharoni & Burton, 1994; Rosenzweig, 1994; Deans et al., 1991; Ein-Dor et al., 1993). These contextual factors contribute greatly to performance in global sourcing by affecting the relationship between supplier’s capabilities and outcome in sourcing processes. Specifically, communication and coordination between supplier and client teams in knowledge processes, such as knowledge transfer/sharing, knowledge-based coordination and expertise management, are influenced by contextual factors, among which cultural understanding often has an intangible but significant impact because partners’ cultural understanding is locally situated, behavioral and embedded in everyday work practices (Weisinger & Trauth, 2002), and trust relationship also has profound impact because partners’ trust is an important aspect of social embeddedness in offshore IS projects (Rai, Maruping, & Venkatesh, 2009).