Business value in complex IT service engagements: Realization is governed by patterns of interaction

Abstract

Mutually successful win-win outcomes in complex IT service engagements are by no means easy to achieve. Typically, provider and client represent complex organizational entities with multiple agendas and diverse stakeholders involved in long-term engagements. Unsurprisingly, new opportunities to create value arise; however, value propositions can fail to be realized, especially when the provider has fulfilled contractual agreements and yet the customer has expressed dissatisfaction. How do we explain this phenomenon, and more importantly, avoid its occurrence? In this paper we examine three IT service engagements through the lens of a conceptual model based on foundational service system concepts. Cross-case analysis reveals patterns of interaction that have the potential to increase, and in some instances, diminish value over time. Our approach identifies leading indicators that mitigate risk and increase benefit to both clients and provider, enabling IT service companies to take advantage of emerging opportunities that lead to greater value co-creation. © 2010 IEEE.