Establishing trust and managing risks in IT outsourcing : best practices for communication between client and vendor.

Abstract

Summary: An assessment of large, multinational outsourcing projects show that many risks associated with software development outsourcing occur due to communication failures between the client and vendor. This study indicates that gaps in the information flow cause ‘information risks’, a type of risk that directly influences outsourcing relationships. Risks and trust associated with communication mediums are discussed, so as to evaluate the contribution of the communication process towards IT outsourcing success. Key Words: IT Outsourcing Relationship, Software Development Outsourcing, Global Software Development, IT Outsourcing Behavior, Trust, Information Risk, Technical Communication, Communication Modes, Communication and Culture, Outsourcing, Research Work.