Winners Curse in IT Outsourcing: Strategies for Avoiding Relational Trauma Harvard Case Solution & Analysis

Large international corporations typically do IT outsourcing. However, the process of evaluating, selecting, and then contracts or sale of assets to IT, people, and / or activity of a third party creates the possibility of "winner's curse." This occurs when a supplier overpromises that can be delivered at a bargain price. This article presents a longitudinal case study of outsourcing, revealed Curse often abstruse winner, his influence in the post-contract management and relationships, and how it was resolved by means of negotiations on the revision of the deal. Based on auction and IT outsourcing theory, this article provides a model of IT outsourcing process and the curse of the winner typology for understanding IT outsourcing companies. In order to avoid the experience of relational trauma as a result of the curse of the winner, this article identifies six lessons, customers and suppliers of the company should consider before signing IT outsourcing deals. "Hide
by Thomas Kern, Leslie P. Willcocks, Eric Van Heck Source: California Management Review 24 pages. Publication Date: January 1, 2002. Prod. #: CMR221-PDF-ENG

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