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Abstract

The increasing competition on the market means that multinational companies (MNCs) as well as many other organizations must take advantage of business improvements. This research addresses the critical success factors (CSFs) for the service receiver of IT outsourcing (ITO). It delivers a limited number CSFs that, with a correct implementation, can deliver favorable results that are necessary for an efficient ITO. These 11 CSFs, are described in detail, and a critical study is performed to identify the value they could create. In addition, the way the implementation of the provided CSF could mitigate the ITO risk has been analyzed using transaction cost theory. A priority list describing the order in which the CSFs should be implemented has been developed and enhanced with a recommendation as to when in the ITO life cycle each CSF should be implemented. A case study research with two MNCs with more than 20 years’ experience in ITO has been used to prove the results.

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