Applying Importance-Performance Analysis To IT Outsourcing: A Survey Among Financial Institutions

What is the importance of specific control and contractual mechanisms for IT outsourcing relationship quality and outsourcing success? Employing a survey among financial institutions and applying Importance-Performance Analysis (IPA) known from marketing research, we analyse the relative importance of Service Level Agreements, control and contractual mechanisms for relationship quality and outsourcing success. Results show that, consistent with prior research, IT outsourcing relationship quality is positively related to outsourcing success. Extending prior research we show that outsourcing contract quality in general is most important for relationship quality, followed by control mechanisms and the characteristics of Service Level Agreements. We contribute to theory by revealing the differential importance of specific control and contractual factors for relationship quality and outsourcing success. Furthermore, we contribute to outsourcing practice by demonstrating the importance of specific measures in an IT outsourcing context and thus deliver direction for outsourcing management.