The Impact of Different Organizational Cultures on IT Outsourcing Relationship Management

Globalization has affected the organizations in many aspects such as structure, architecture, internal/external strategies and sourcing management. Outsourcing is one of the recent business strategies used to provide IT needs via external agents. The relationship between the service buyer and provider companies is a constituent playing a significant role in IT outsourcing success or failure. This research has a focus on the influence of organizational culture of buyer companies on the specific factors of trust, cooperation, communication and commitment in their relationship with the IT service provider. Two explorative case studies are done in global companies using ITO which revealed the presence of organizational culture effect. Particularly, being innovative, having open discussion as an organizational culture and looking for extending contracts with providers as a strategy, appeared as the major difference between the two cases organizational culture; which influences the studied factors of ITO relationship in this research.

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