Does Organizational Culture Matter in IT Outsourcing Relationships?

IT Outsourcing (ITO) is used widely by Multinational Companies (MNCs) as a sourcing strategy today. ITO relationship between service buyer and provider then becomes a crucial issue in achieving expected objectives. This research sheds light on the influence of organizational culture (OC) of the buyer company on its ITO relationship with the provider. More specifically, the influence that OC can have on four significant dimensions of trust, cooperation, communication and commitment in ITO is studied through a qualitative analysis. IT managers of six MNCs were interviewed which exposed the connection between OC and ITO relationship factors. An open communication culture, speed of adaption to change, receiving innovative solutions, flat or hierarchical structures and responsibility degree appeared as the most visible differences between OCs of MNCs influencing ITO relationships. The results can be used for improving the ITO by considering the influence of OC to gain more benefits from outsourcing.