Journal of Management Information Systems

Volume 15 Number 4 1999 pp. 29-61

Effect of Partnership Quality on IS Outsourcing Success: Conceptual Framework and Empirical Validation

Jae-Nam, Lee and Young-Gul, Kim

ABSTRACT: Recently, increasing attention has been paid to building successful partnerships in information systems (IS) outsourcing. This study establishes partnership quality as a key predictor of outsourcing success. The authors propose a theoretical framework for outsourcing partnership based on a social, rather than an economic, perspective. They identify the partnership-related variables from the relevant literature and clarify the concept of partnership quality by distinguishing between its components and its determinants. They then examine the impact of partnership quality on outsourcing success. Hypotheses on partnership quality were tested for 74 outsourcing relationships between 36 service receivers and 54 service providers. Results indicate that partnership quality may serve as a key predictor of outsourcing success. Partnership quality was found to be positively influenced by factors such as participation, communication, information sharing, and top management support, and negatively affected by age of relationship and mutual dependency.

Key words and phrases: information systems outsourcing, outsourcing partnership, outsourcing success, partnership quality