Understanding transition performance during offshore IT outsourcing (original) (raw)

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[ Erik Beulen ](/insight/search?q=Erik Beulen) (Tilburg University, Tilburg, The Netherlands and KPMG EquaTerra, Tilburg, The Netherlands)

[ Eric van Heck ](/insight/search?q=Eric van Heck) (Rotterdam School of Management, Erasmus University, Rotterdam, The Netherlands)

Abstract

Purpose

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Within an IT outsourcing relationship, transition represents a critical and complex phase that starts immediately after contract signing. Transition involves handing over outsourced activities from client firm to service provider firm and accompanies a new way of operating. The purpose of this paper is to determine and detail factors influencing the performance of transition phase within global IT outsourcing relationships.

Design/methodology/approach

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In this paper, the authors present a framework for transition performance that includes four factors: transition planning, knowledge transfer, transition governance and retained organization. This framework is tested and enriched by utilizing a single, in‐depth case study involving over 25 interviews with a global offshore IT outsourcing engagement.

Findings

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It was found that knowledge transfer and transition governance are more critical factors than transition planning and retained organization for transition performance. This was due mainly to two reasons: the critical challenges faced, within the scope of these factors, had higher potential to disrupt transition; and both these factors and their related issues required a significant joint and coordinated effort from client and service provider firms, thereby, making implementation challenging for transition.

Originality/value

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Practitioners have suggested that over two‐thirds of failed outsourcing relationships are due to transition‐related challenges. This paper represents one of the first in‐depth studies that provides insights from a real‐life global outsourcing engagement, which contributes to and complements existing literature on IT outsourcing by providing a greater understanding of transition. Furthermore, it provides practitioners with insights and best practices that can be used to guide transitions in real‐life engagements.

Keywords

Citation

[Beulen, E.](/insight/search?q=Erik Beulen "Erik Beulen"), [Tiwari, V.](/insight/search?q=Vinay Tiwari "Vinay Tiwari") and [van Heck, E.](/insight/search?q=Eric van Heck "Eric van Heck") (2011), "Understanding transition performance during offshore IT outsourcing", Strategic Outsourcing: An International Journal, Vol. 4 No. 3, pp. 204-227. https://doi.org/10.1108/17538291111185449

Publisher

Emerald Group Publishing Limited