Governance of multivendor outsourcing arrangements: A coordination and resource dependency view

Abstract

During the past decade, the scope of IT outsourcing arrangements evolved from single vendor to multivendor relationships requiring new forms of governance. Empirical research on governance in the context of multivendor outsourcing is scarce. The aim of this research is to develop a better understanding of the governance in multivendor IT outsourcing arrangements. Drawing on Coordination and Resource Dependency Theory, we studied the governance of multivendor arrangements in a case study. Our findings cover three main areas. First, the coordination of IT services between both client and vendors is intertwined, and, as such, they are highly interdependent. Secondly, our study shows that when multiple vendors are involved in IT service delivery, the position of each firm and clear relationship mechanisms should be captured by governance mechanisms. Finally, contracts should not only comprise service agreements between client and vendors, but also between vendors.