Influential Factors in IT Outsourcing Relationship in a Swedish Municipality

Information Technology Outsourcing (ITO) has generated considerable interest within Information Systems (IS) research as a consequence of its benefits in terms of cost efficiency and freedom to focus on core capabilities. This study covers the area of ITO in the public sector, specifically, in Swedish Municipalities where ITO has become a mainstream strategy. The influential ITO factors of the post-contract stage of an ITO relationship are examined and debated in light of existent research literature. The research is based on a case study of a Swedish Municipality and a direct IT vendor. A thematic analysis brings light upon three new ITO influential factors which are: (1) mutual understanding and long-term engagement; (2) Multi-sourcing, and (3) Communication between Municipalities, together with other seven factors present in the research literature that have an influence on the ITO relationship. The findings of this study can support ITO decision-makers from Swedish municipalities in improving the ITO relationship between their organizations and IT vendors.</p