Legitimacy Management and Trust in Offshoring Information Technology Services

URL:

Abstract:

Our study examines the evolution of offshoring of information technology services between a multinational telecommunications firm and Indian vendors. The firm’s strategy sought to access critical resources of talented software professionals at low
cost and to facilitate growth in a highly competitive telecommunications sector. Legitimacy management proved critical in
explaining the evolution of this offshoring arrangement between a client firm and its four Indian vendors. Our findings surface
the strategies and activities adopted by proponents in their challenge of gaining, maintaining, building, and repairing legitimacy.
We examine how the subsequent reactions and interactions of other audiences iteratively influenced the legitimacy dynamics
of offshoring. We also contribute an understanding of the role of trust in the challenges of managing legitimacy, and conclude
with practical implications for institutionalizing offshoring arrangements.