Innovate on Purpose -- Factors Contributing to Innovation in IT Outsourcing

In addition to IT expenditure reduction, the ability to generate innovation is an important criterion when selecting a provider for IT-related initiatives. Considering an outsourcing life cycle model, we identify and evaluate factors that foster innovation in IT outsourcing projects. Our study thus addresses an essential issue in outsourcing - the links between outsourcing and organizational innovativeness. Hence, our findings strengthen practitioners' awareness of the variety of influences that need to be considered in order to foster innovation. Moreover, the overview of the factors we identify serves as a checklist for IT outsourcing projects. Building on this list, future research should aim to develop a process model to guide (1) decisions concerning the selection of IT outsourcing partners, and (2) the collaboration along the entire IT outsourcing life cycle.