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

Creating complementary flexibility . . .

So, how does the board manage all this? As part and parcel of this business enablement philosophy, you as a board member – and your direct reports – must accept that your own interests and those of your outsourcing providers will be closely linked, meaning in turn that effective motivation of suppliers has to be one of your company’s core skills. This motivation has to start at the top because any change in your strategy will affect the capabilities you source, the way they are delivered and the costs they involve.

Outsourcing agreements need to be written in the full knowledge that the customer’s business may hit a downturn or perform below expectations. Equally, its business may take off. Within these ...