Strategic innovation in information technology outsourcing: identifying the gaps between vendor contribution and client requirement

UNCG Author/Contributor (non-UNCG co-authors, if there are any, appear on document)
Allyson W. Wood (Creator)
The University of North Carolina at Greensboro (UNCG )
Web Site:
Lakshmi Iyer

Abstract: While much research has focused on information technology (IT) outsourcing, little research has concentrated on how a vendor's offerings fit into the strategic vision of its client company. This research identifies the areas in which client companies expect information technology (IT) outsourcing vendors to make contributions to their strategic innovation. Through case studies and a literature review, this research offers insights into each IT outsourcing party's definitions and perceptions of innovation, how client and vendor companies formulate and implement innovation, and each party's expectations in outsourcing for innovation. Case studies of client and vendor organizations engaged in IT outsourcing arrangements and a review of the service level agreement literature yielded the following findings: (1) client companies present certain challenges to vendors that are trying to innovate in their organizations, (2) vendors must determine how to bridge the gap between the client's current IT organization and the client's desired result, (3) certain traits must be present in client companies in order for them to realize innovation through IT outsourcing arrangements, and (4) certain contractual elements are instrumental in ensuring that the client's innovation requirements are met.

Additional Information

Language: English
Date: 2014
Innovation, IT outsourcing
Information technology $x Contracting out
Information technology $x Technological innovations
Business enterprises $x Information technology $x Management
Business enterprises $x Technological innovations $x Management
Strategic planning
Interorganizational relations

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