| Spending by U.S. companies in offshore IT services continues at unprecedented levels despite a high failure rate. This study fills a gap in the existing literature by examining the client-vendor offshoring relationship through the theoretical lens of social exchange theory at the organizational level of analysis from the client's perspective. Social exchange theory focuses on the exchange of activities between two parties, whether they are individuals or companies and was used as a basis for examining the client and vendor relationship. Variables were identified by a review of the literature primarily from IT outsourcing and offshoring but also from general IT, marketing, sociology and organizational science literature.;Data was collected using a field survey of Fortune 500 CIOs representing a population of organizations at the forefront of the offshoring phenomenon. The survey instrument was developed based on the adaptation of previously validated scales. Hypotheses regarding the correlations between social variables such as trust, communication, dependence, power, shared values and offshoring success were tested using Spearman's rho correlation. Seven of the hypotheses were supported, four hypotheses were not supported and one hypothesis was deemed not testable due to lack of information. |
