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The Progression of Client-Vendor Relationships in Offshored Applications Development

The Progression of Client-Vendor Relationships in Offshored Applications Development

Rajesh Mirani
Copyright: © 2008 |Pages: 18
ISBN13: 9781599045702|ISBN10: 1599045702|EISBN13: 9781599045726
DOI: 10.4018/978-1-59904-570-2.ch007
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MLA

Mirani, Rajesh. "The Progression of Client-Vendor Relationships in Offshored Applications Development." Innovative Technologies for Information Resources Management, edited by Mehdi Khosrow-Pour, D.B.A., IGI Global, 2008, pp. 110-127. https://doi.org/10.4018/978-1-59904-570-2.ch007

APA

Mirani, R. (2008). The Progression of Client-Vendor Relationships in Offshored Applications Development. In M. Khosrow-Pour, D.B.A. (Ed.), Innovative Technologies for Information Resources Management (pp. 110-127). IGI Global. https://doi.org/10.4018/978-1-59904-570-2.ch007

Chicago

Mirani, Rajesh. "The Progression of Client-Vendor Relationships in Offshored Applications Development." In Innovative Technologies for Information Resources Management, edited by Mehdi Khosrow-Pour, D.B.A., 110-127. Hershey, PA: IGI Global, 2008. https://doi.org/10.4018/978-1-59904-570-2.ch007

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Abstract

This chapter presents an evolutionary framework for the establishment and progression of client-vendor relationships in the context of offshored applications development. It is argued that such a relationship typically begins as a cost-reduction exercise, with the client contracting out simple, structured applications to one or more offshore vendors. Over time, the client assigns increasingly complex applications to selected vendors, and cultivates loose, trust-based, network-like relationships with them. As offshored applications continue to evolve and become business-critical, the client may seek to regain control by establishing a command-based hierarchy. This may be achieved through part- or full-ownership of a vendor organization, or by starting a captive offshore subsidiary. Thus, the initial client objective of cost reduction is ultimately displaced by one pertaining to risk control. Pertinent prior research is used to justify the proposed framework. This is followed by a case study that describes how a specialty telecommunications company is pursuing just such an evolutionary path.

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