Abstract: Strategic information systems outsourcing (ISO) refers to the outsourcing of information systems that are anticipated to have a major transformational impact on the client’s business strategy. Such outsourcing arrangements typically span longer terms and pose higher risks for failure. These risks need to be mitigated by building inter-firm alignment, which help define roles initially and sustain responsibilities over the long term. Inter-firm alignment capability keeps the client vendor relationship going thru knowledge sharing in strategic planning and business and information technology operational processes. This research study defines a multi-item measure of client-vendor alignment capability and uses that instrument to survey a number of North America based firms, who have undertaken the outsourcing of strategic information systems to their Indian vendor and finds that both contractual and relational governance are needed to build this inter-firm alignment capability. The results indicate that both contractual and relational governance support knowledge sharing, which builds client-vendor alignment and this alignment capability impacts strategic outsourcing success factors.
Keywords: Alignment, Contractual Governance, Information Systems Outsourcing, knowledge sharing, Relational Governance, success factors
Download this article: JISAR - V10 N3 Page 17.pdf
Recommended Citation: Ghosh, B. (2017). Building Client Vendor Alignment Capability in Strategic Information Systems Outsourcing. Journal of Information Systems Applied Research, 10(3) pp 17-28. http://jisar.org/2017-10/ ISSN: 1946-1836. (A preliminary version appears in The Proceedings of CONISAR 2016)