Framework for alignment of service provider value drivers with client expectations in IT services outsourcing

Abstract

In this competitive environment, service provider organizations are keen to create value for their client organizations. However, variations in value delivery as per client expectations exist and can be attributed to the service provider organization for not understanding the client organization’s needs; understanding the client organization’s needs but not having the exact product/service offerings; understanding the client organization’s needs and offering the exact product/service but failing to deliver; and understanding the client organization’s needs and offering and delivering the exact product/service but failing to adjust to client’s changing needs. It is thus critical to understand how alignment can be achieved between service provider and client organizations. The focus of this research work is on client expectations and service provider value propositions, and alignment of the two during IT services outsourcing project delivery. First, we identify service provider and client value drivers through extensive literature study and subsequently, using these value drivers and dyadic case studies of four organizations, we develop a framework of (mis)aligned practices at three levels of conceptualization: contractual alignment, knowledge alignment, and business alignment.

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