Though information technology (IT) transformation programs are gaining in importance, we know little about the nature of the challenges involved in such programs and how to manage them. Using grounded theory methodology, we conducted a multiyear case study of a large IT transformation program in a major commercial bank, during which we encountered the interrelated themes of paradoxes and ambidexterity. Grounded in our case, we construct a substantive theory of ambidexterity in IT transformation programs that identifies and explains the paradoxes that managers need to resolve in IT transformation programs. The ambidexterity areas we identified are (1) IT portfolio decisions (i.e., IT efficiency versus IT innovation), (2) IT platform design (i.e., IT standardization versus IT differentiation), (3) IT architecture change (i.e., IT integration versus IT replacement), (4) IT program planning (i.e., IT program agility versus IT project stability), (5) IT program governance (i.e., IT program control versus IT project autonomy), and (6) IT program delivery (i.e., IT program coordination versus IT project isolation). What weaves these six areas together is the combined need for IT managers to employ ambidextrous resolution strategies to ensure short-term IT contributions and continuous progress of IT projects while simultaneously working toward IT transformation program success as a foundation for IT-enabled business transformation. However, in addition to this commonality, we find that the nature of paradoxical tensions differs across the six areas and requires slightly different management strategies for paradox resolution. Ambidexterity areas (1), (2), and (3) are associated with IT transformation strategizing and, in addition to balancing short- and long-term goals, require the mutual accommodation and blending of business and IT interests in the spirit of IT-business partnering to achieve IT-enabled business change and IT-based competitiveness. Ambidexterity areas (4), (5), and (6) are associated with IT program and project execution and, in addition to balancing short- and long-term requirements, require a recurrent and dynamic act of balancing ÒlocalÓ needs at the IT project level and ÒglobalÓ needs at the IT program level.
While much is known about selecting different types of control that can be exercised in information systems development projects, the control dynamics associated with ISD offshoring projects represent an important gap in our understanding. In this paper, we develop a substantive grounded theory of control balancing that addresses this theoretical gap. Based on a longitudinal case study of an ISD offshoring project in the financial services industry, we introduce a three-dimensional control configuration category that emerged from our data, suggesting that control type is only one dimension on which control configuration decisions need to be made. The other two dimensions that we identified are control degree (tight versus relaxed) and control style (unilateral versus bilateral). Furthermore, we illustrate that control execution during the life cycle of an ISD offshoring project is highly intertwined with the development of client-vendor shared understanding and that each influences the other. Based on these findings, we develop an integrative process model that explains how offshoring project managers make adjustments to the control configuration periodically to allow the ISD offshoring project and relationship to progress, yielding the iterative use of different three-dimensional control configurations that we conceptualize in the paper. Our process model of control balancing may trigger new ways of looking at control phenomena in temporary interfirm organizations such as client-vendor ISD offshoring projects. Implications for research on organizational control and ISD offshoring are discussed. In addition, guidelines for ISD offshoring practitioners are presented.