Software Outsourcing Partnership Process � a Life Cycle? (Track 1, Session 15)
Author(s) :
Marianne Kinnula (University of Oulu, Finland)
Veikko Sepp�nen (University of Oulu, Finland)
Juhani Warsta (University of Oulu, Finland)
Sari Vilminko (University of Oulu, Finland)
Abstract : The focus of this research is on change processes of organizations, particularly in case of outsourcing partnerships � the process involved in the formation and management of a software research and development (R&D) outsourcing partnership. Van de Ven and Poole contend that all the specific theories of organizational change and development used in management research come back to four basic theories: life cycle theory, evolution theory, dialectic theory, and teleology, and that most of the organizational theories are some kind of combination of these four. In outsourcing research most of the researchers implicitly assume that an outsourcing process follows the life cycle theory. In this study we analysed a software outsourcing partnership model containing four phases: Planning, Developing, Implementing, and Managing the relationship, and found out the following: When limiting the viewpoint to one company only, the first three phases form a sub-process of forming an outsourcing partnership, and the last phase is about managing the said relationship. The entire process, as well as the sub-process, follows the life cycle theory, but the last phase is an indefinitely running, self-guided process that follows the teleological theory. Inside the Managing the relationship phase life cycles of projects can be found. When the partnership is seen as a system of two entities, however, the interplay is characterized by conflicting interests as per dialectic theory. In a healthy situation the progress through the processes is driven by constructive synthesis that creates a win-win situation between the companies. As Van de Ven and Poole contend different viewpoint gives us different results and a different understanding of the phenomenon of outsourcing partnership. One theory is not enough to give answers to all the questions and by changing the viewpoint and combining different viewpoints and theories, a more comprehensive understanding of the phenomenon can be reached.

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