Empirical study on IT outsourcing partnership with Relational Exchange Theory

Based on the relationship exchange theory, we categorize the characteristics of IT outsourcing partnership into six dimensions by reviewing and analyzing the literatures. There are trust, flexibility, communication, cooperation, management, risk and benefit share. Based on the six characteristics of partnership, competent and environmental factors including providerpsilas factors, customerpsilas factors and environmental factors, IT outsourcing success including economic interests, company honor and business promotion, a model for IT outsourcing partnership is established with relationship exchange theory (RET). Results from structural equation modeling (SEM) analysis illustrate that the IT outsourcing partnership characteristics and the competent and environmental factors have significant direct and indirect influence on IT outsourcing service success respectively. Finally, managerial advices are discussed to help IT outsourcing providers find effective ways for IT outsourcing success, and to offer reference of IT outsourcing practice for customers.