A framework to study vendors’ contribution in a client vendor relationship in information technology service outsourcing in India

Abstract

Purpose – The information technology (IT) industry has been continuously expanding. This has resulted in promoting outsourcing of work by clients to vendors. Most of the published research has focussed on when clients should start outsourcing, what to outsource, criteria for vendor selection, etc., however the vendor side of the relationship has been mostly ignored. The purpose of this paper is to delve deep into the vendors’ side and what aspects a vendor needs to consider in order to maintain a good relationship with the clients. Design/methodology/approach – The research design of the paper is to use literature survey to define the components of the client vendor relationship (CVR), identify the parameters impacting the relationship, establish correlation between the independent variables and the dependent variable; subsequently to propose a framework for the CVR. Findings – The findings have been that – communication, technical value addition, knowledge sharing and client vendor adaptability are vital to any outsourcing engagement and if the vendor is able to get good knowledge transfer of the application at hand and the business domain, it can perform better. Vendors, which proactively resolve issues, ensure stable deliveries before time and identify improvements in the software outside the work assigned maintain better relationship. Further a vendor must be adaptable to clients, cultural, time zone differences, should provide a good project manager and be ready to change tools, resources as per client needs. As long as the vendor is able to ensure the above, the stability of the client country and need for information security is not as important to vendors. Research limitations/implications – The study has limitations as it focusses on the vendors’ side and is inclined toward Indian vendors’ perspectives. Future research can include client as well and can be conducted for a different geography. Originality/value – The research work is original and adds value to the IT service outsourcing industry by identifying the parameters which need to be monitored for a sustainable CVR.