IDEAS home Printed from https://ideas.repec.org/a/sae/globus/v16y2015i5p747-759.html
   My bibliography  Save this article

Risk Factors in IT Outsourcing Partnerships: Vendors’ Perspective

Author

Listed:
  • Matilda Alexandrova

Abstract

In recent years, information technology (IT) outsourcing is a widespread practice in the global business today. Business organizations decide to transfer such kind of services to other firms (vendors) in search of cost-related and other competitive advantages. Identification and handling of risks appears to be crucial for IT outsourcing success. The objective of this article is to identify the main risk factors related to IT outsourcing partnerships from the perspective of Bulgarian vendors on the basis of empirical study. The analysis is based on theoretical grounds provided by the specialized literature and utilizes selected results from a survey of outsourcing relations between Bulgarian vendor organizations and their clients (outsourcers). The study is focused on the risk factors that could potentially hinder the formation and development of strategic outsourcing partnerships. Some of these risk factors act as threats for outsourcing success and their potential effects need to be considered within the risk mitigation strategies of IT outsourcing service providers.

Suggested Citation

  • Matilda Alexandrova, 2015. "Risk Factors in IT Outsourcing Partnerships: Vendors’ Perspective," Global Business Review, International Management Institute, vol. 16(5), pages 747-759, October.
    • Handle: RePEc:sae:globus:v:16:y:2015:i:5:p:747-759
    DOI: 10.1177/0972150915591427
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/0972150915591427
    Download Restriction: no
    File URL: https://libkey.io/10.1177/0972150915591427?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Mary C. Lacity & Leslie P. Willcocks, 2009. "Information Systems and Outsourcing," Palgrave Macmillan Books, Palgrave Macmillan, number 978-0-230-59483-8.
    2. Willcocks, Leslie & Choi, Chong Ju, 1995. "Co-operative partnership and 'total' IT outsourcing: From contractual obligation to strategic alliance?," European Management Journal, Elsevier, vol. 13(1), pages 67-78, March.
    3. Aundhe, Madhuchhanda Das & Mathew, Saji K., 2009. "Risks in offshore IT outsourcing: A service provider perspective," European Management Journal, Elsevier, vol. 27(6), pages 418-428, December.
    4. Leslie P. Willcocks & Mary C. Lacity, 2009. "The Practice of Outsourcing," Palgrave Macmillan Books, Palgrave Macmillan, number 978-0-230-24084-1.
    5. Matilda Alexandrova, 2011. "It Outsourcing Partnerships In Bulgaria: Strategic Orientation "," Analele Stiintifice ale Universitatii "Alexandru Ioan Cuza" din Iasi - Stiinte Economice (1954-2015), Alexandru Ioan Cuza University, Faculty of Economics and Business Administration, vol. 58, pages 555-569, november.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Tran Thi Van Trang & Mai Ngoc Khuong, 2023. "The role of risk factors, partner compatibility, organizational creativity and co-creation value on firm performance: evidence from SMEs in Vietnam," Zbornik radova Ekonomskog fakulteta u Rijeci/Proceedings of Rijeka Faculty of Economics, University of Rijeka, Faculty of Economics and Business, vol. 41(2), pages 449-475.
    2. Carlos Sanchís-Pedregosa & María-del-Mar Gonzalez-Zamora & María-José Palacín-Sánchez, 2018. "Outsource Services to Improve Financial Performance: Is There a Limit?," Global Business Review, International Management Institute, vol. 19(1), pages 21-31, February.
    3. Sukruth Suresh & T. Ravichandran, 2022. "Value Gains in Business Process Outsourcing: The Vendor Perspective," Information Systems Frontiers, Springer, vol. 24(2), pages 677-690, April.
    4. Ekaterina Sorokina, 2016. "Modeling and Estimation of the Risk When Choosing a Provider," Papers 1603.05294, arXiv.org.
    5. Amar Raju G. & Souvik Roy & Santanu Mandal, 2018. "Determinants of Website Usability: Empirical Evidence from Tourism Sector in India," Global Business Review, International Management Institute, vol. 19(6), pages 1640-1662, December.
    6. Abhishek Narain Singh & M.P. Gupta, 2019. "Information Security Management Practices: Case Studies from India," Global Business Review, International Management Institute, vol. 20(1), pages 253-271, February.
    7. Rajorshi Sen Gupta, 2018. "Risk Management and Intellectual Property Protection in Outsourcing," Global Business Review, International Management Institute, vol. 19(2), pages 393-406, April.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Emilio Alvarez-Suescun, 2010. "Combining transaction cost and resource-based insights to explain IT implementation outsourcing," Information Systems Frontiers, Springer, vol. 12(5), pages 631-645, November.
    2. Dahlgrün, Philipp W. & Bausch, Andreas, 2019. "How Opportunistic Culture Affects Financial Performance in Outsourcing Relationships: A Meta-Analysis," Journal of International Management, Elsevier, vol. 25(1), pages 81-100.
    3. repec:vnm:wpdman:77 is not listed on IDEAS
    4. Williams, Christopher & Durst, Susanne, 2019. "Exploring the transition phase in offshore outsourcing: Decision making amidst knowledge at risk," Journal of Business Research, Elsevier, vol. 103(C), pages 460-471.
    5. Christian Peukert, 2012. "External Technology Supply and Client-Side Innovation," International Studies in Entrepreneurship, in: David B. Audretsch & Erik E. Lehmann & Albert N. Link & Alexander Starnecker (ed.), Technology Transfer in a Global Economy, edition 127, chapter 0, pages 161-184, Springer.
    6. Jolanta Sloniec, 2021. "A Longitudinal Analysis of IT Outsourcing in Large Polish Organizations," European Research Studies Journal, European Research Studies Journal, vol. 0(Special 2), pages 439-452.
    7. Manoj Thomas & Daniela Costa & Tiago Oliveira, 2016. "Assessing the role of IT-enabled process virtualization on green IT adoption," Information Systems Frontiers, Springer, vol. 18(4), pages 693-710, August.
    8. Arduini, Davide & Denni, Mario & Lucchese, Matteo & Nurra, Alessandra & Zanfei, Antonello, 2013. "The role of technology, organization and contextual factors in the development of e-Government services: An empirical analysis on Italian Local Public Administrations," Structural Change and Economic Dynamics, Elsevier, vol. 27(C), pages 177-189.
    9. Breunig, Christoph & Kummer, Michael & Ohnemus, Jörg & Viete, Steffen, 2016. "IT outsourcing and firm productivity: Eliminating bias from selective missingness in the dependent variable," ZEW Discussion Papers 16-092, ZEW - Leibniz Centre for European Economic Research.
    10. Jeremiah, Rupin, 2017. "DO FIRMS INNOVATE ABROAD? - The Case of Swedish R&D in India," SSE Working Paper Series in Business Administration 2017:4, Stockholm School of Economics, revised 07 Dec 2017.
    11. Nils Urbach & Tobias Würz, 2012. "How to Steer the IT Outsourcing Provider," Business & Information Systems Engineering: The International Journal of WIRTSCHAFTSINFORMATIK, Springer;Gesellschaft für Informatik e.V. (GI), vol. 4(5), pages 247-259, October.
    12. Chi, Maomao & Zhao, Jing & George, Joey F. & Li, Yanhui & Zhai, Shanshan, 2017. "The influence of inter-firm IT governance strategies on relational performance: The moderation effect of information technology ambidexterity," International Journal of Information Management, Elsevier, vol. 37(2), pages 43-53.
    13. Mazza Tatiana & Azzali Stefano, 2014. "Determinants of Information Technology Outsourcing," Scientific Annals of Economics and Business, Sciendo, vol. 61(1), pages 1-15, July.
    14. Wenbo Guo & Jing Betty Feng & Brad McKenna & Pengzhu Zhang, 2017. "Inter-organizational governance and trilateral trust building: a case study of crowdsourcing-based open innovation in China," Asian Business & Management, Palgrave Macmillan, vol. 16(3), pages 187-207, July.
    15. Roman Beck & Katharina Schott, 2012. "The Interplay of Project Control and Interorganizational Learning: Mitigating Effects on Cultural Differences in Global, Multisource ISD Outsourcing Projects," Business & Information Systems Engineering: The International Journal of WIRTSCHAFTSINFORMATIK, Springer;Gesellschaft für Informatik e.V. (GI), vol. 4(4), pages 183-192, August.
    16. Peterson, Helen, 2016. "Merging management ideals in Swedish IT offshoring," Scandinavian Journal of Management, Elsevier, vol. 32(2), pages 97-105.
    17. Kirchner, Alexander & Labusch, Nils & Lopez Cordoba, Adriana & Sartor, Sebastian & Tumbas, Sanja & Villalon, Enrique & Wiethoff, Sebastian, 2011. "Network e-Volution," ERCIS Working Papers 11, University of Münster, European Research Center for Information Systems (ERCIS).
    18. Alireza Shahrasbi & Mehdi Shamizanjani & M. H. Alavidoost & Babak Akhgar, 2017. "An Aggregated Fuzzy Model for the Selection of a Managed Security Service Provider," International Journal of Information Technology & Decision Making (IJITDM), World Scientific Publishing Co. Pte. Ltd., vol. 16(03), pages 625-684, May.
    19. Atesci, Kayhan & Bhagwatwar, Akshay & Deo, Trupti & Desouza, Kevin C. & Baloh, Peter, 2010. "Business process outsourcing: A case study of Satyam Computers," International Journal of Information Management, Elsevier, vol. 30(3), pages 277-282.
    20. Irene Bertschek & Daniel Erdsiek & Manuel Trenz, 2017. "IT Outsourcing—A Source of Innovation? Microeconometric Evidence for Germany," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 38(7), pages 941-954, October.
    21. Tjader, Youxu & May, Jerrold H. & Shang, Jennifer & Vargas, Luis G. & Gao, Ning, 2014. "Firm-level outsourcing decision making: A balanced scorecard-based analytic network process model," International Journal of Production Economics, Elsevier, vol. 147(PC), pages 614-623.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:globus:v:16:y:2015:i:5:p:747-759. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: http://www.imi.edu/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.