The Role of Internal Business/IT Alignment and IT Governance for Service Quality in IT Outsourcing Arrangements

Abstract
This paper theoretically argues and empirically
evaluates how a firm’s internal alignment and
governance processes impact the service quality
received from an external IT outsourcing provider.
Using data from 154 firms, it is shown that good
internal business/IT alignment leads to better and more
accurate provider control processes which in turn
improve service level agreements. The paper
contributes to the literature in linking internal
governance with external IT service quality, and by
disclosing a largely neglected influence of alignment
on governance and control processes.

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