Vendor boundary spanning in Indian Information Technology (IT) companies

Abstract

Boundary spanning is an important mechanism for the successful and efficient management of client-vendor relationships in Information Technology (IT) outsourcing. Vendors are often responsible for initiating boundary-spanning between the two parties, and the final effectiveness of boundary-spanning often hinges more on vendors rather than on clients. Boundary-spanners are individuals, who operate at the boundary of an organization, performing functions like external representation and information processing. The idea that boundary-spanning can become an organizational capability is well acknowledged in prior literature; but research regarding this process is limited. Boundary-spanning is often left to the ingenuity of the individual performing the role, preventing its development as an organizational capability. Therefore, this study attempts to uncover the process and develop the building blocks of the organizational capability in managing client-vendor relationships in IT outsourcing. We adopt an exploratory case study method for theory building to address the question, “How do vendor boundary-spanners influence client-vendor relationships in IT outsourcing engagements?” We use multiple-case design (9 cases) for literal replication. Our propositions show that the practices of an effective boundary-spanner involves establishing a dyadic tie with the client-manager; strengthening the established tie based on shared context; using it to identify a joint problem; and developing interpersonal trust while solving this joint problem. The outcome of this interpersonal trust then gets appropriated through client-manager’s structural networks and contributes to the vendor organization’s business growth. This study uses the social capital lens to develop propositions regarding how boundary-spanners operate.