Multiple Objectives and Outsourcing Contracts in IT Outsourcing

Many companies are interested in achieving multiple objectives and outsourcing contracts. This paper present contract theory to examine how objectives and incentives are related in IT outsourcing contracts that include multiple objectives with varying measurement costs. This research aims to investigate the objectives and performance metrics in IT outsourcing contracts. This paper will also shows the outsourcing contracts that emphasize goals with high measurement costs employ more performance metrics than initiatives whose objectives have a lower measurement-cost profile.