Title: The Effect of Client Firm’s IT Capability on IS Outsourcing Success in Tunisia: The Mediating Role of Relationship Quality
Abstract: Outsourcing IS services has been on the rise in developed as well as developing countries in the world. Despite the IS outsourcing trends seen over the past several years, some outsourcing experiences are failing. One frequently cited reason is the lack of previous research to address the effect of the client firms' IT capabilities on the IS outsourcing success. In order to achieve the IS outsourcing success, firms hope also to have a flexible relationship with their external providers. The quality of the relationship between the client firm and the external provider may therefore be a key element of successful outsourcing. The objective of this research is firstly to identify the impact of the client firm's IT capability on IS outsourcing success and secondly to clarify the role of the relationship quality between the client firm and the service providers in IS outsourcing success. To achieve this objective, a model is developed based on the literature review. Quantitative method based on a questionnaire survey is adopted for this research. We are interesting in the Tunisian banking sector characterized by a growing demand for the IS outsourcing. Data collected are analyzed by Structural Equation Modelling using PLS (Partial Least Squares) technique to test the research hypotheses. The results indicate that IT capability has no effect on IS outsourcing success and among the dimensions of the relationship quality, only the communication quality has a direct effect on outsourcing success.