An investigation of factors that influence the duration of IT outsourcing relationships

An investigation of factors that influence the duration of IT outsourcing relationships

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Article ID: iaor20081977
Country: Netherlands
Volume: 42
Issue: 4
Start Page Number: 2107
End Page Number: 2125
Publication Date: Jan 2007
Journal: Decision Support Systems
Authors: , , , ,
Abstract:

Past studies in the IT outsourcing area have examined the management of IT outsourcing relationships from a variety of perspectives. The present paper extends this line of research. In this study, we take a multi-theoretic perspective to explore factors that determine the duration of continuing IT outsourcing relationships between vendor and client firms. Five ex-ante and two ex-post factors that may influence relationship duration were examined in this study. Data for this study were collected using a nationwide survey. To investigate the dynamics of continuing outsourcing relationships through repetitive contracts, we performed survival analysis using an accelerated failure-time (AFT) model. Four factors are found to have a significant relationship with relationship duration as hypothesized. However, three factors, of which two are ex-post factors, are found to not have a significant impact on outsourcing relationship duration. Implications and contributions of the study are discussed.

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