There is significant information asymmetry in the information technology (IT) outsourcing market. Clients are uncertain about vendors’ capabilities and vendors are uncertain about clients’ requirements. Prior literature has examined many devices to reduce such information asymmetry, e.g., vendor reputation, client-vendor prior relationship, vendors’ Capability Maturity Model (CMM) rating, vendor location, and technological diversity of the vendor. Shweta Singh is an Assistant Professor of Information Systems and Management at the Warwick Business School, University of Warwick, United Kingdom. She received her Ph.D. in Information and Decision Sciences from the Carlson School of Management at the University of Minnesota.
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