Managing Vendor-Client Expectations in IT Outsourcing: A Psychological Contract Perspective

Abstract

Managing the outsourcing relationship remains a major challenge today. This study applies the psychological contract perspective to identify vendor and client expectations in IT outsourcing contracts in a two-staged mixed method design. First, we interview IT clients and vendors, and content-analyze interview transcripts to determine mutual obligations expected by both parties. Then, we conduct a quantitative survey of IT clients and vendors to determine how well these obligations are being fulfilled. Preliminary analysis shows that expectations differentiate successful from failed projects, supporting the applicability of psychological contract to IT outsourcing.