An Organizational Approach to Managing Outsourcing Relationships

by Stuart Kliman and Dr. Wendell Jones

Outsourcing customers and providers usually enter into outsourcing relationships with noble intentions and high expectations. The CIO and other customer executives look forward to exemplary service, best-of-breed thinking, extraordinary responsiveness, and a vendor that shows both a partner-like caring about the customer's success and an intuitive understanding of the business. This, the CIO imagines, will be an arrangement that yields real value. The provider, in turn, hopes to provide all that and more while making a good margin and fair profit. The provider reasons that they can enjoy this customer for life -- a relationship so strong that, no matter the context or the bid, they will have the inside track. Thus, the relationship begins.