Innovate on Purpose -- Factors Contributing to Innovation in IT Outsourcing

In addition to IT expenditure reduction, the ability to generate innovation is an important criterion when selecting a provider for IT-related initiatives. Considering an outsourcing life cycle model, we identify and evaluate factors that foster innovation in IT outsourcing projects. Our study thus addresses an essential issue in outsourcing - the links between outsourcing and organizational innovativeness. Hence, our findings strengthen practitioners´ awareness of the variety of influences that need to be considered in order to foster innovation. Moreover, the overview of the factors we identify serves as a checklist for IT outsourcing projects. Building on this list, future research should aim to develop a process model to guide (1) decisions concerning the selection of IT outsourcing partners, and (2) the collaboration along the entire IT outsourcing life cycle.