An integrated model of success in IT outsourcing relationships: Implications for the public sector

Possible remedies for the possible failure of IT outsourcing in the public sector include the improvement of knowledge-sharing processes over organizational boundaries between partners, who may learn more about the problems that occur while looking at possible solutions together. Ensuring the right flow of knowledge in the two directions is central to the success of IT outsourcing operations. However, these solutions do not fully acknowledge the different interrelationships between the main factors affecting knowledge transfer in outsourcing relationships in a dynamic way. In this chapter, the authors apply previous research on modeling knowledge-sharing across boundaries to IT outsourcing contracts during the transition phase where both partners initiate an IT outsourcing relationship. Simulation experiments suggest that four reinforcing processes play key roles in the progress of the outsourcing relationship: trust, outsourcers' and providers' knowledge, commitment, and interfacing. The authors propose future research directions to conduct empirical test of the conceptual model in the context of the Mexican Public Administration.