Abstract
Abstract : Organisations tend to outsource some of their functions to third-party suppliers or vendors. Most of these functions are IT projects that are planned, executed and managed by virtual team members. The organisation and the vendor are located remotely from each other. However, in the course of these contracts, a governance model needs to be adopted to decrease operational and compliance risks. While organisations are expected to have their own governance models and methods, the question this paper sought to answer was whether governance is applied in these scenarios and whose governance is applicable. Using a quantitative study on this subject and using questionnaire as a data collection instrument, this study has found that most organisations apply their in- house governance principles on their projects whether they were carried out by vendors virtually or not, and that they are in control of the governance method and rules applied. The results indicated that although governance measures are formally adopted by organisations, they’re not adequately monitored for compliance.