An integrative model of trust on IT outsourcing: Examining a bilateral perspective

Trust has been considered a central aspect of successful IT outsourcing from the beginning of the outsourcing relationship to the end. A great deal of interest in trust has been described, but there has been little in the way of strong theoretical models to aid in understanding the role of trust, the antecedents of trust, and the consequences of trust in outsourcing relationship. Further, very limited research has been done on the outsourcing relationships from the service receiver and provider’s perspectives simultaneously. This study suggests an integrative model of trust in the context of outsourcing and then attempts to empirically explore the role of initial trust and initial distrust, and trust with knowledge management as mechanisms for a successful outsourcing project from both service receiver and provider perspectives. The results show that trust between the service receiver and provider is very important for knowledge sharing and outsourcing success, and is affected by the initial perception to each other’s partner at the beginning of the outsourcing process. Interestingly, this study also shows that initial trust is considered as a significant factor in its perception of trust from the service receiver’s perspective, but not from the service provider’s viewpoint. The results help extend our understanding of critical success factors in outsourcing success and of different standpoints between the service receiver and provider.