The Value Of Partnership In Offshoring

Abstract

Partnership or strategic partnership is a label attributed to client-vendor relationships characterized as highly involved. This high involvement or collaboration is considered a partnership quality. This study uses the social exchange theory to examine the relationship between clients and vendors as partners in offshoring. Social exchange theory requires that as members of an exchange relationship receive benefit, they must return an equivalent amount of benefit to maintain relationship equilibrium (Homans, 1958). Trust is an important element in exchange relationships because it helpsto ensure equilibrium.  Management of theclient-vendor relationship is critical for the success of the IT offshoring arrangement.