Collaborative governance strategies for a strategic offshore IT outsourcing engagement

Abstract

Purpose This research study aims to establish the significance of collaborative governance practices in creating higher business value from an offshore IT outsourcing (ITO) relationship. Design/methodology/approach At the outset, a Delphi technique identifies the most significant ITO success criteria from a prescribed list, which is the outcome of a review and analysis of existing research articles. Subsequently, an empirical survey captures the perceptions of provider-side middle level professionals to prioritize these significant success criteria, which are the outcome of the Delphi study. Statistical analysis of the prioritized success criteria delivers a set of success factors, which forms the basic building blocks to formulate a set of offshore governance strategies. A real-life case evidence shows the practicability of implementing the proposed strategies underlining the similar practices taken up in the past. Findings A set of strategies and best practices for establishing collaborative governance mechanisms within a strategic offshore ITO. Research limitations/implications This research study captures the perspectives of Indian service providers only. Originality/value This comprehensive study helps the contractual parties harness and augment the positive impacts of success factors in implementing superior contractual, relational and performance governance strategies within a strategic ITO initiative. A collaborative program management mechanism ensures the fruitful implementation of proposed strategies with the active support of top management of contractual parties. Consequently, the proposed strategies help offshore providers assess and augment their service capabilities for higher business efficiency and value creation.