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When Subordinates Become IT Contractors: Persistent Managerial Expectations in IT Outsourcing

Nanyang Business School, Nanyang Technological University, Nanyang Avenue 639798, Singapore
Nanyang Business School, Nanyang Technological University, Nanyang Avenue 639798, Singapore
Computer Information Systems Department, J. Mack Robinson College of Business, Georgia State University, Atlanta, Georgia 30302–4015
atwho{at}ntu.cdu.sg
asang{at}ntu.edu.sg
dstraub{at}gsu.edu

This paper investigates the persistence of managerial expectations in an IT outsourcing context where the traditional relationship between supervisor and subordinate changes to one of client–manager and contractor. A mixed–method approach was used, in which a qualitative methodology preceded a large–scale quantitative survey. Data were collected from 147 survivors of a government IT organization which had undergone IT outsourcing in the previous year. Findings show that role overload, the presence of strong ties between manager and contractor, and the lack of prior outsourcing experience increased the persistence of managerial expectations. In turn, persistence of expectations had a distinct influence on managerial perceptions of contractor performance.

Key Words: IT outsourcing; persistent expectations; role overload; strength of ties; contractor performance; contract workers; changing employment status
History: This paper was received on June 20, 2000.

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