June 2005 Cutter Benchmark Review: Outsourcing Insights: Managing the Relationship

by Danny Ertel and Katherine Barr

Most buyers and providers in outsourcing today recognize that the relationship matters. It affects whether buyers get the decreased costs, improved service, or transformed business processes they are looking for; and it affects whether providers achieve their margins, retain and grow scope, and win new business on the strength of their reputation and satisfied customers. In a 2004 Cutter Consortium survey, more than 80% of respondents stated that at least 30% of annual contract value hinges on the quality of the working relationship.

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June 2005 Cutter Benchmark Review: Outsourcing Insights: Managing the Relationship June 2005

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