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Managing an Outsourcing Partnership: Important Stages in the Process
Abstract
This chapter is an attempt to build on and extend existing outsourcing research by focusing on the process of managing an outsourcing partnership. Furthermore, it considers the role of information technology and the importance of establishing interorganizational trust in order to provide a deeper understanding of the partnership outsourcing phenomenon. The outsourcing partnership in focus in this chapter is between Alpha Corp., a large minerals group, and RDC, its remote service provider. The chapter shows that Alpha Corp.’s strategy for creating, maintaining and evolving the partnership with RDC occurs in three different stages: black-boxing of technology, establishing interorganizational trust, and performance based contracting. Given the multiple roles information technology assumes in an outsourcing alliance, this chapter also shows that understanding and managing the role of IT is crucial in maintaining a successful partnership. In addition, given the documented importance of information technology in outsourcing partnerships, there is a need to include trust in technology as yet another dimension in establishing interorganizational trust.
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