Achieving Customer-Provider Strategic Alignment in IT Outsourcing

Abstract

In IT Outsourcing, strategic alignment between a customer and an IT outsourcing provider is very important. This article uses resource-based theory, social capital theory, and organizational learning theory to analyze the relationship between a customer and a provider in IT services Outsourcing context. Based on the former analysis, this article applies a strategic alignment model for managing the customer-provider relationship in IT service outsourcing contexts and focuses on three dimensions: communications, value measurements and governance. Next, we use case studies of China Development Bank to illustrate how it is managing the customer-provider relationship with its IT service provider to achieve strategic alignment.