Contracts, Control and Presentation in IT Outsourcing: Research in 13 UK Organizations

Information technology (IT) outsourcing continues to experience phenomenal growth, with an estimated market size of over $100 billion in 2000. Its adoption by some of the largest international corporations has seen outsourcing become considered a key component of the information management agenda. Critical to this agenda is the formulation of comprehensive contracts. For this, legal experts and/or advisors can be consulted, but enforcement depends very much on client and vendor account managers. A theoretical analysis of the contract contrasted with empirical data from client and vendor post-contract management practice revealed that the contract has a number of purposes beyond its sole legal nature, outlining a number of control dimensions both parties aim to enforce. This paper presents findings from 13 UK-based organisations on the role of the outsourcing contract and its purpose for ensuring control over the client’s outsourcing destiny.