Complex outsourcing relationships management model

Abstract

Global software development (GSD) refers to developing software with a distributed team spanning multiple locations and time zones. Based on relationships, there are four types of outsourcing: dyadic (one client–one vendor), multi‐vendor (one client–many vendors), co‐sourcing (many clients–one vendor), and complex outsourcing (many clients–many vendors). Compared to the other types of outsourcing contracts, complex outsourcing contracts are the hardest to work on and have the highest risk of project failure. This paper presents a model, the complex outsourcing relationships management model (CORMM), to assist the complex outsourcing stakeholders (both the clients and vendors) in managing their relationships in the context of GSD. This paper aims to develop a CORMM to assist the complex outsourcing relationships management stakeholders in GSD. Also, we are interested in identifying the applicability and effectiveness of the CORMM in the real‐world industry. The research approach follows a structured methodology comprising multiple phases. Initially, it leverages a systematic literature review (SLR) as its primary research method. The second phase involves the validation of the SLR findings via an empirical study. Subsequently, in the third phase, a model is developed. Finally, the proposed research approach is validated by incorporating two industrial case studies to assess the organization's relationship management utilizing the Motorola tool. The case study results show that CORMM can successfully point out relationship management issues in a complex outsourcing context. The feedback received from the participants of both companies indicates several positive and valuable insights about the CORMM and its application in the context of complex outsourcing relationships. The results highlight that CORMM serves as an assessment tool for evaluating an organization's relationship management capability and a means for organizations to enhance their position. Through CORMM, complex outsourcing organizations (many clients–many vendors) can identify strengths and weaknesses in their relationship management practices, enabling targeted improvement efforts.