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

. . . to innovation

Turning the focus from cost to quality is a significant shift in the customer’s mindset and objectives – and it is important that it takes its outsourcing supplier with it during this transition. In practical terms this change involves revisiting the costs agenda and finding the right balance between cost and quality, since it is unreasonable for the customer to expect the highest possible quality at the lowest possible cost.

However, many customers – especially those who are outsourcing for the first time – move unilaterally to a quality focus without involving their outsourcing provider. Where this happens the relationship is set for severe strain, since the customer will start to criticize the supplier for a lack of quality-boosting ...