Provider IT services has grown substantially, since the advent of IT. However, research on it has been limited and mainly qualitative. A recurring provider problem was identified: a lack of attention to the performance of the IT they provide. Due to uncertainty or change in the client environment, the fit between capabilities and organizational structure of outsourcing providers must be balanced. Here we present the results of an exploratory quantitative empirical study among outsourcing experts involved with three different types of IT outsourcing providers: domestic, offshore, and global.
We developed instruments that measured some core concepts such as outsourcing capabilities, organizational structure dimensions, and performance monitoring. We then used these in analyzing data gathered from three different types of IT outsourcing providers. We found that service providers who establish a fit between their outsourcing capabilities and their customers’ organizational structures are less susceptible to problems resulting from unexpected change in the clients’ environment.
Our results therefore extended our understanding of how critical determinants in provider organizations are related to continuous quality monitoring of their performance.