Performance of ICT outsourcing: analyzing client-vendor value-drivers and relationship quality

This study seeks to understand how the performance of outsourced ICT projects can be measured, in an attempt to ascertain how the attributes of client-vendor relationships might affect project performance. Literature was consulted through a content analysis of 39 research articles. It is theorized that value drivers (knowledge-sharing and relative competence level) and relationship quality (relational governance) influence project performance outcome. However, an analysis based on a quantitative empirical study suggests that project performance, measured in terms of cost savings, is negatively influenced by relational attributes and knowledgesharing between client and vendor in terms of methodological capabilities, mediated by the vendor to client knowledge-sharing about HRM capabilities. Furthermore, time compliance was found to be negatively affected by relational attributes of the client-vendor relationship and vendor to client knowledge-sharing about technological capabilities. Finally, quality improvements was found to be negatively affected by vendor to client knowledge-sharing in terms of HRM. Limitations of the findings and the implications for research and IT outsourcing are then discussed.