Our results indicate that service quality and client’s economic benefits have different sets of determinants. Service quality is determined by three provider's capabilities and relational governance. Client’s economic benefits are determined by contractual and relational governance, client's provider management capability, and provider’s service quality. Our findings also provides evidence that service quality fully mediates the relationships among three provider's capabilities and outsourcing performance.
capability
capabilities
Research on information technology outsourcing (ITO) and business process outsourcing
(BPO) has consistently found that client firm capabilities, provider firm capabilities, and governance mechanisms (contractual and relational) are key determinants of outsourcing performance. These key determinants work together to affect outsourcing performance, however, the information systems (IS) literature has investigated them in a separate manner. This study contributes to the body of IS knowledge by examining capabilities and governance mechanisms influence on outsourcing performance independently and jointly.