Paper Number

ECIS2026-1373

Paper Type

CRP

Abstract

Strategic innovations in the context of IT outsourcing may contribute to business value and stimulate growth. Research reveals, however, that insights in business advantages remain relatively uncharted. Considering the disruptive effect that AI may have on firms, outsourcing AI solutions needs to be carefully governed. We used a qualitative single case study to explore the governance of AI outsourcing in the context of a large national rail infrastructure operator that outsourced AI solutions to two IT service providers. Our key contribution reveals two important outcomes. First, we find that triadic governed arrangements contribute to delivering business advantages. Second, we address how AI is governed in case of multiple providers. Our evidence shows that a triadic approach contributes to realizing business advantages for both client and providers that are in a competitive relationship.

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Jun 14th, 12:00 AM

Exploring The Governance Of AI Outsourcing From A Client-Service Provider Perspective: Realising Business Advantages

Strategic innovations in the context of IT outsourcing may contribute to business value and stimulate growth. Research reveals, however, that insights in business advantages remain relatively uncharted. Considering the disruptive effect that AI may have on firms, outsourcing AI solutions needs to be carefully governed. We used a qualitative single case study to explore the governance of AI outsourcing in the context of a large national rail infrastructure operator that outsourced AI solutions to two IT service providers. Our key contribution reveals two important outcomes. First, we find that triadic governed arrangements contribute to delivering business advantages. Second, we address how AI is governed in case of multiple providers. Our evidence shows that a triadic approach contributes to realizing business advantages for both client and providers that are in a competitive relationship.

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