A Theoretical Framework for Measuring the Success of Customer Relationship Management Outsourcing

Abstract

Dramatic growth of e-commerce has increased the bargaining power of customers requiring changes in strategies for Customer Relationship Management (CRM) development and implementation on the part of firms. Success of CRM implementations is thus critical for firms to survive in the 21st century. Because of the complex technologies involved in CRM, companies are choosing to outsource to vendors that specialize in CRM. In this study, we propose a theoretical framework that examines the CRM outsourcing success. Based on prior literature, we propose that CRM outsourcing success is influenced by degree of CRM outsourcing, partnership quality between the outsourcing firm and the vendor, organizational factors of the outsourcing firm, and the service quality of the vendor.