Governance in IT Outsourcing Partnerships

Abstract

An IT outsourcing partnership consists of an outsourcing relationship and one or more external IT suppliers and the relationship between them. Alignment of mutually set goals of the IT outsourcing relationship is a prerequisite to achieve governance. In order to achieve governance the management of IT outsourcing partnerships is also essential. Managing an IT outsourcing relationship requires substantial effort from both the outsourcing organisation and the IT supplier. This chapter is based on 11 international IT outsourcing partnerships, five expert interviews and on literature. Three dimensions are described in a descriptive IT outsourcing partnership governance framework: outsourcing organization, the maintenance of the relationship, and the IT supplier. Eleven governance factors are detailed in the framework. These governance factors include guidelines for the implementation of the IT strategy and the information management. Furthermore, this chapter focuses on the IT outsourcing contract. The role of the contract management and account management of the IT suppliers and the implementation of global service delivery processes is also detailed in this chapter.