Contract v. relationship
As well as shifting the operation from its current mode to a future mode, the transition has to achieve something else: lay down a robust and resilient framework for the long-term relationship.
As we pointed out in Chapter 3 on shared economic value, there are two ways of approaching outsourcing – or indeed any other commercial deal. One is to seek to extract greater value by screwing down the value derived by the other party. The other is to share value equitably and fairly to try and create a win/win.
Where the second of these approaches succeeds its effect is to align the interests of the parties. When one side wins the other wins too, and risks and benefits are shared. In outsourcing, this arrangement is the most ...
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