Abstract

Information Technology (IT) outsourcing practices are increasing due to valuable strategic benefits such as cost savings, value-added activities, high quality systems, risk reduction, efficiency and competitiveness, compliance and security, and more. Today, managing the outsourcing relationship between client and vendor has become one of the significant issues to be considered for the sustainability of outsourcing interaction and the success of project outcomes. This study examines the importance of social interaction structure on project success and examines how relationship dynamics are realized between the client and vendor side through a case of “failed” IT outsourcing project. This case study puts forward the importance of IT outsourcing on project success with an interpretive analysis. In this regard, the study examines the IT outsourcing project participants’ needs, the communication dynamics and the social network model in terms of structural and tie properties; and sheds light on the hidden issues of failed IT outsourcing projects for practitioners and researchers.