DETERMINANTS AND IMPACTS OF GOVERNANCE FORMS ON OUTSOURCING PERFORMANCE: EVIDENCE FROM A CASE STUDY

Sanjay Chaudhary, Xalted Information Systems Pvt. Ltd.
sanjay030@gmail.com
Rajiv Kishore, State University of New York at Buffalo
rkishore@buffalo.edu

ABSTRACT

As the world recovers from the economic slowdown, the outsourcing industry has to adapt via strategic planning and right governance to cater to the changing business requirements and objectives. The authors review the transactional, contractual and relational governance of outsourcing arrangements along with its underlying characteristics, so companies can choose an appropriate governance forms. Authors emphasize the positive effect of relational governance on the outcome of the outsourcing arrangement and illustrate their arguments through a case study. Authors recommend relational governance for desired benefits with flexibility to accommodate changes and mechanisms built in to cope with change.