Investigating the Differences between Success Factors of Conventional IS Outsourcing and Quasi-Outsourcing

Conventional IS outsourcing does not always meet expectations, sometimes because of a company's lack of control over the outsourced activity. Quasi-outsourcing is a form of collaboration where the company transfers its IS personnel to a subsidiary, allowing the company to keep better control over the relationship than in conventional outsourcing. In this paper, the factors affecting the success of a quasi-outsourcing relationship are examined in an empirical case study where a Finnish corporate group quasi-outsourced its IS services, and are compared to success factors of conventional outsourcing. First, we found that certain factors identified to be critical for success in conventional IS outsourcing are already fulfilled in the context of quasi-outsourcing. Second, we identified a number of success factors of quasi-outsourcing not yet identified in conventional outsourcing. Third, we identified three challenges of quasi-outsourcing, and a number of success factors as countermeasures to meet these challenges.