AN ANALYSIS ON THE ROLE OF SOCIAL NETWORK STRUCTURE IN IT OUTSOURCING PROJECT REALIZATION

Abstract

Information Technology (IT) outsourcing practices are increasing due to valuable strategic benefits suchas cost savings, value-added activities, high quality systems, risk reduction, efficiency and competitiveness,compliance and security, and more. Today, managing the outsourcing relationship between client and vendor hasbecome one of the significant issues to be considered for the sustainability of outsourcing interaction and thesuccess of project outcomes. This study examines the importance of social interaction structure on project successand examines how relationship dynamics are realized between the client and vendor side through a case of“failed” IT outsourcing project. This case study puts forward the importance of IT outsourcing on project successwith an interpretive analysis. In this regard, the study examines the IT outsourcing project participants’ needs, thecommunication dynamics and the social network model in terms of structural and tie properties; and sheds light onthe hidden issues of failed IT outsourcing projects for practitioners and researchers.