Mitigation of risks due to service provider behavior in offshore software development: A relationship approach

Abstract

Purpose – Although risks and client‐vendor relationships in IT outsourcing have been studied in prior research, there is a paucity of studies providing insights on the mitigation of client risks through the relationship. This research aims to focus on mitigation of the ex post risks of firms engaged in offshore software development (OSD). Client risks due to service provider behavior are identified first. Further, this work seeks to identify relationship variables that could reduce the impact of determinants of risk on a risk category.Design/methodology/approach – This research followed a multiple case study method aiming to build insights and directions that would facilitate further research. The paper's goal of sampling was to choose cases which were likely to extend the emergent theory pertaining to risks and their mitigation through relationships.Findings – Findings from this study show that shirking, loss of control over information assets, and service provider lock‐in are the three categories of ex ...