| Outsourcing as a means of meeting organizational IS needs is now a commonly accepted and growing practice. An emerging stream of research in this area has focused on managing the relationship between the vendor and the customer. Further advances along this line of inquiry would be facilitated by a better understanding of the nature of the client-vendor relationship, and a better understanding of the link between that relationship and outsourcing success. This study contributes to the body of knowledge in this area by investigating the relationship factors that impact the ultimate success of an outsourcing arrangement. The research model is based on Relational Exchange Theory, and incorporates both a customer and a vendor perspective.; Responses to a survey of managers from both client and vendor firms engaged in outsourcing relationships were analyzed using PLS, a structural equation modeling technique. Results indicated that vendors tend to have a broader, more inclusive view of relationships, considering them more as partnerships or alliances. Customers, on the other hand, tended to see the relationship more as a preferred-supplier arrangement. IT quality was found to significantly influence the link between the relationship and success. Both customers and vendors viewed success as a multidimensional construct, consisting of benefits attained, equity, and satisfaction. |
