Outsourcing Contract Success: A Quality Management Perspective

Despite the phenomenal growth in outsourcing of various business functions like Enterprise Systems outsourcing, IT outsourcing, and Business Process outsourcing, there has been relatively less attention given to the high-risk area of outsourcing contracts. In this regard, contract has been the conventional medium for governing outsourcing relationships. This study aims to bring forward the importance of quality in the entire contracting process, involving contract planning, pre-contract negotiation, contract formulation, and post-contract management. Specifically, the objective of this paper is to posit a quality framework for planning and analyzing outsourcing contracts that will in turn help in achieving outsourcing success. The framework proposed can be a useful guiding lens for practitioners and researchers associated with outsourcing work.