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The role of trust in outsourced IS development projects

Published:01 February 1999Publication History
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References

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  1. The role of trust in outsourced IS development projects

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        Chander Shekher Arora

        The author examines trust as the key social factor in outsourcing IS development work. He argues that all outsourcing projects proceed through “virtuous and vicious” cycles involving trust, structure (of the written contract), and performance. A balance of trust and structure is essential for project success, which in turn improves trust, especially performance-based trust. Excessive focus on either the written contract or trust, ignoring the other, hurts project performance. The idea of trust as a part of a “psychological contract” between vendor and client is appealing, as is the categorization of trust into four types: calculus-based, identification-based, knowledge-based, and performance-based. However, in the absence of detailed case illustrations for each type of trust and differentiation between them, it is not clear how to apply this part of the discussion. The paper is rather simplistic in its portrayal of the commonly held belief that trust is important in any relationship. The research potential of this issue may be limited. The domain of the study is “somewhat limited” because out of 18 cases, 13 were only from the vendor's viewpoint, and 14 come from a single country, India. The author concludes that further research is needed to validate his findings, but the real question is whether any further research is required to prove the value of trust in outsourcing. Let's take it for granted!

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          cover image Communications of the ACM
          Communications of the ACM  Volume 42, Issue 2
          Feb. 1999
          83 pages
          ISSN:0001-0782
          EISSN:1557-7317
          DOI:10.1145/293411
          Issue’s Table of Contents

          Copyright © 1999 ACM

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          • Published: 1 February 1999

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