Investigation of Challenges in Complex Outsourcing Relationships: An Empirical Study

Abstract

Complex outsourcing contracts offer numerous advantages, such as improving cost predictability, achieving cost savings, and increasing scalability and flexibility when needed. However, managing complex outsourcing arrangements often involves interactions among multiple stakeholders from various backgrounds and cultures, which can be considerably more challenging than typical outsourcing. This research aims to validate and investigate the challenges identified via a systematic literature review and expand upon these findings through empirical or statistical means. To do so, we conducted a questionnaire survey involving 60 professionals from 25 different countries worldwide. To assess the significance of each challenge, participants were asked to rank each challenge on a five-point scale. Furthermore, we analyzed these challenges across different continents, organization(s) size, organization(s) scope, SPI certification(s), experience of staff, and employee’s job statuses using various statistical techniques. The study's findings underscore the critical nature of these challenges within the context of complex outsourcing, highlighting the need for organization(s) to carefully address them in order to foster successful relationships.