Abstract

Outsourcing is becoming increasingly relevant as a means to respond to rapid changes and reduce investments in noncore competencies (Apte et al., 1997). As traditionally conceived, it is solely based on formal contractual mechanisms, set at an inter-firm level and mainly designed to reduce opportunistic behavior presuming an unbalanced relationship between the client and the supplier (Lacity and Willcocks, 2012). In such a setting, any disagreement or problem seemingly is solved through effective legal and contractual management (Lacity and Hirschheim; 1995) and any benefit or gain is considered to the sole benefit of the part that generated it. Yet in practice, less evident and hidden relationship aspects can lead to the failure or success of the agreement. Accordingly, we address the possibility to integrate the legal contract with some “contents” and consequently avoid the previously cited situation. By creating a fertile ground for collaboration in the long term, it is given the possibility to establish and maintain a strategic partnership with the supplier rather than a mere bureaucratic supply contract (Saunders et al., 1997). Here the consolidation of a psychological contract (PC) that toughen up the legal one and intervene as a complement. The aim of this paper is to understand how the PC and its constituent elements can integrate the legal aspects of an outsourcing agreement and determine the success of the long term relationship, SEC Services - a consortium of banking houses.

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