Capability, Quality and Performance of Offshore IS Vendors: A Theoretical Framework and Empirical Investigation.

UNCG Author/Contributor (non-UNCG co-authors, if there are any, appear on document)
Ruth C. King, Associate Professor (Creator)
Prashant Palvia, Joe Rosenthal Excellence Professor and Director of the McDowell Research Center for Global IT Management (Creator)
The University of North Carolina at Greensboro (UNCG )
Web Site:

Abstract: Information systems (IS) offshoring has become a widespread practice and a strategic sourcing choice for many firms. While much has been written by researchers about the factors that lead to successful offshoring arrangements from the client's viewpoint, the vendor's perspective has been largely scarce. The vendor perspective is equally important as offshore IS vendors need to make important decisions in terms of delivering operational and strategic performance and aligning their resources and processes in order to meet or exceed targeted outcomes. In this article, we propose and test a three-level capability–quality–performance (CQP) theoretical framework to understand vendor outcomes and their antecedents. The first level of the framework represents three vendor capabilities: relationship management, contract management, and information technology management. The second level has three mediating variables representing process quality: partnership, service, and deliverable quality. The third level has three dependent variables representing vendor outcomes: operational performance, strategic performance, and satisfaction. The model was tested with 188 vendor firms from India and China, the two most popular destinations for IS offshoring. Results support the CQP framework; vendor capabilities are significant predictors of intermediate quality measures, which in turn affect vendor outcomes. Implications of the study findings to both theory development and IS offshore vendor strategic decision making are discussed.

Additional Information

Language: English
Date: 2010
contract management, deliverable quality, IT management capability, IT offshoring, partnership quality, relationship management, service quality, vendor performance, information systems

Email this document to