The power of renegotiation and monitoring in software outsourcing: Substitutes or complements?

• Main Authors: HUANG, He, HU, Minhui, KAUFFMAN, Robert J., XU, Hongyan
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2021
• Subjects: Software outsourcing; software reliability; monitoring; renegotiation; incentives; incomplete contract; Databases and Information Systems; Management Information Systems
• Online Access: https://ink.library.smu.edu.sg/sis_research/9543; https://ink.library.smu.edu.sg/context/sis_research/article/10543/viewcontent/Power_of_renegotiation_av.pdf
• Institution: Singapore Management University

Monitoring and contract renegotiation are two common solutions for addressing information asymmetry and uncertainty between a client and a vendor of software outsourcing services. Monitoring is mostly applied in time-and-materials contracts, as a basis for inspecting and reimbursing the vendor’s eff...