By Mary C. Lacity

A wealthy database of over 2,200 outsourcing preparations, studied throughout sectors and geographies, and over the years, from inception, via agreement signing, to results. This booklet has extraordinary perception into the strong practices which were confirmed potent time and again.

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1997; De Loof et al. 1995; Lacity and Hirschheim 1993a), and insourcing highly specific assets (Watjatrakul 2005). Academics have also discussed risks specific to certain types of outsourcing, such as application service provision or offshore outsourcing (Kern et al. 2002a, b, c; Sakthivel 2007). Kern et al. (2002a) examine specific risks and risk mitigation strategies for application service provision. Sakthivel (2007) identifies 18 risks and 18 risk control mechanisms specific to offshore systems development.

S (2006) is the best paper to help understand these mixed results. These authors summarize all prior event studies and also present the results of their own event study. Their 4 Robust Practices from Two Decades of ITO and BPO Research event study is unique, because they did not just look at the overall change in stock market value, which tends to be very small. Instead, they looked at the differences between announcements that led to above Average Abnormal Returns (AAR) versus announcements that led to below AAR.

Relational governance covers the softer issues of managing client–provider relationships, including trust, norms, open communication, open sharing of information, mutual dependency, and cooperation. In total, we coded 132 relationships on relational governance and its effect on outsourcing outcomes. The most studied relational attributes were effective knowledge sharing, communication, trust, and viewing the provider as a partner. In 94% of the findings, the research showed that higher levels of relational governance were associated with higher levels of outsourcing success.

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