Understanding transition performance during offshore IT outsourcing
Erik Beulen, Vinay Tiwari and Eric van Heck
Research question: What factors influence transition performance and why?
Transition phase
A typical IS outsourcing relationship (figure 1) can broadly be divided into six phases: initiation, service provider selection, contract negotiation, transition, service delivery and contract renewal/termination.
Knowledge transfer: the extent to which clients acquire, absorb, and utilize knowledge on outsources IT from vendors. During transition, knowledge transfer is key. There are two types of knowledge transfer: services transferred from the provider to the outsourcer, and the organization-specific knowledge regarding processes and procedures is transferred from the outsourcer to the provider.
Theoretical background: transition performance
Focus is on four factors: transition planning, knowledge transfer, transition governance, and retained organization. These factors influence transition performance. The factor transition planning is impacting the three other factors.
Transition planning:
Transition planning during outsourcing relationships has a clear starting and end point, with well-defined deliverables and can be characterized as a project. It is developed jointly with consultation between the client and the service provider organization. There are 4 sub-factors related to project planning, namely: * Project interdependencies: client organizations need to keep other possible projects (such as software package implementation or hardware installations) and their interdependencies under consideration. Otherwise it can negatively impact the transaction. * Identification of resources: capable client and service provider personnel need to be identified prior to the transition. These resources are required to ensure that a proper knowledge transfer takes place. * Quality of