Smarter Outsourcing: An executive guide to understanding, planning and exploiting successful outsourcing relationships

Maintaining the balance of value – and pain

As we have said before, the best solution to this type of situation is not to go there in the first place. Rather than both descending into a confrontational dynamic where every discussion represents an opportunity for position bargaining, both parties should strive to stay in territory where the mutual benefit in the partnership is very clear, and the split of ownership and responsibilities is geared to maximizing it.

This culture should be supported under the contract by regular fixed reviews, perhaps quarterly as part of a senior management governance model. Ideally these reviews should ensure that the mutual benefits are still in focus, and that any areas of excessive value or pain on one side ...