Paper Number

1199

Abstract

IT outsourcing (ITO) is receiving renewed focus but many firms fail to experience anticipated benefits. Extant research suggests that governance and capabilities are important ingredients for IT outsourcing (ITO) success. However, empirical studies into the relative effects of different modes of governance and types of capabilities have been difficult to reconcile. No overall conclusion has been reached on which factors are most important for successful ITO outcomes. Using meta-analytic techniques, we combine quantitative evidence from 62 past empirical studies on ITO success. Our analysis of 241 correlations reported across these studies shows that both relational governance and contractual governance, are important but relational processes namely, knowledge sharing and communication, and relational attributes of trust and commitment, are more significant than contract. We also found that client-side capabilities in both IT management and ITO management are as important as vendor-side capabilities to ensuring ITO success. Our results address the gaps in past qualitative reviews on the topic and provide important insights for ITO research and practice.

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