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Governance of outsourcing projects

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Abstract

As mentioned in Chapter 7, while the outsourcing industry has demonstrated an impressive growth during the past years, quite a few outsourcing relationships have ended in poor results and some have even been terminated early. Both the professional press and academic publications have cited poor governance as a primary factor leading to these results. In this chapter, therefore, we focus on understanding governance issues involved in outsourcing projects and the practices that could further support formal structures. In particular, we review the following issues:

  • the governing structures for outsourcing ventures;

  • the roles involved in governing outsourcing projects;

  • the most effective governance practices for outsourcing projects.

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Relevant teaching cases

  • Feeny D. and Willcocks L.P. (2009), “Managing Strategic IT-Based Outsourcing Projects: The CLASS Case in Financial Services,” available in this book.

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  • Jaiswal, V. and Levina, N. (2008) “JIT Full Circle Outsourcing,” in: IT Outsourcing–Impacts, Dilemmas, Debates and Real Cases in A.L. Albertin and O.P. Sanchez (eds.), Editora FGV, Sao Palo, Brazil. Also available from the author’s website: http://www.pages.stern.nyu.edu/~nlevina

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© 2009 Ilan Oshri, Julia Kotlarsky & Leslie P. Willcocks

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Oshri, I., Kotlarsky, J., Willcocks, L.P. (2009). Governance of outsourcing projects. In: The Handbook of Global Outsourcing and Offshoring. Palgrave Macmillan, London. https://doi.org/10.1057/9780230251076_9

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