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Research and studies of successful, collaborative outsourcing relationships have uncovered commonalities that researchers codified into a methodology designed to structure aligned, innovative and cooperative outsourcing arrangements. This paper aims to describe a new methodology for establishing successful collaborative outsourcing relationships.

The design is based on seven years of field research into successful strategic outsourcing agreements completed by the authors and additional colleagues.

Research into successful collaborative outsourcing relationships has uncovered commonalities that researchers have identified as normative rules which, when followed, lead to aligned, innovative and cooperative relationships. This paper identifies five rules and ten elements that together form a flexible framework for implementing an effective outsourcing partnership. This approach is called “vested outsourcing” because the nature of most highly successful relationships is based on a high degree of collaboration and aligned incentives where the buyer and supplier have a vested interest in each other's success.

The conclusions and principles derived from the original research and fieldwork are described in two books (Vested Outsourcing: Five Rules that Will Transform Outsourcing and The Vested Outsourcing Manual). This paper provides a review of the authors' current research, rather than new research findings.

The purpose of this paper is to describe how seven sourcing models operate along a continuum depending on the complexity of the marketplace and the strategic needs of buyers and suppliers. Studies of business procurement and sourcing practices reveal that collaborative and holistic approaches will increase efficiencies and value in strategic outsourcing relationships.

The design is based on research and fieldwork from the University of Tennessee and vetted with the Sourcing Industry Group, the Center for Outsourcing Research and Education and the International Association for Contracts and Commercial Management. This work provided the basis and framework for the 2015 book, Strategic Sourcing in the New Economy: Harnessing the Potential of Sourcing Business Models in Modern Procurement.

Most organizations operate under conventional transaction-based models that are constrained by a formal, legally oriented, risk-averse and liability-based culture. There is growing awareness that transactional-based approaches do not always give each party the intended, or best, results. University of Tennessee research shows how organizations apply alternative output- and outcome-based approaches for complex contracts. That experience demonstrates that alternative Sourcing Business Models are viable approaches to the conventional transactional methods[1]. As senior leaders see positive results from carefully crafted collaborative agreements, momentum grows for both output- and outcome-based approaches.

Education on sourcing business models.

Collaborative outsourcing.

This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies.

This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context.

The paper provides strategic insights and practical thinking that have influenced some of the world’s leading organizations.

The briefing saves busy executives and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy-to-digest format.

The purpose of this paper was to consider 52 conceptual frameworks identified during a systematic literature review with the aim of providing insights into various aspects of outsourcing relationships. Many authors propose these frameworks to contribute to our understanding of how outsourcing relationships are conceived, operate and evolve. A meta-analysis of these frameworks was completed.

The approach consisted of five stages: a systematic, but focused literature review to identify relevant frameworks; a study of the selected frameworks to enable the design of a typology of framework styles, so that frameworks adopting similar styles can be compared and analysed; grouping of the frameworks into families addressing different aspects of relationships as they form, operate and evolve; using the types (from the typology) within these family groups to facilitate a meta-analysis of each group by identifying common or contrasting themes; and deriving overall observations and identifying the most robust frameworks in each group.

Nine framework types are identified and named as nominal categorisation, matrix, pyramid, dependency, interaction, flowchart, two-dimensional progression, life cycle and stepped. Five logical family groups were identified addressing how relationships form, operate and evolve. These groups cover the scope of outsourcing relationship, the relationship governance, the climate of the relationship, relationship tactics and relationship evolution. Common themes were identified, and overall observations were drawn. Recommendations are also provided on the frameworks which were assessed as being most robust and likely to be of most use to practitioners and researchers.

The study considered a representative sample of frameworks identified during a systematic review of literature relating to outsourcing relationships. However, it cannot be considered fully comprehensive, and frameworks from other sources also exist.

Outsourcing success depends on the establishment and management of a constructive relationship between the client and supplier. Frameworks assist understanding of this important aspect of outsourcing.

This paper provides a reference point for scholars and practitioners who are interested in outsourcing relationships and may value the sources identified and the summaries, comparisons and recommendations provided.

The purpose of this paper is to provide insights into strategic sourcing concerning facilities management (FM) and how it can contribute to a sourcing decision that combines the benefits of internal and external provision with consideration of business risk and cost.

The paper investigates a strategic sourcing and procurement process in a large public organisation in Denmark based on participating in internal meetings, a workshop, document studies and interviews. The process is compared to a new ISO standard with guidance on strategic sourcing and development of FM agreements.

A problem in the new ISO standard is that it is based on sequential model starting with detailing the demand and needs before investigating sourcing option. The case shows that the way needs are specified are depending on the chosen sourcing models. Based on a thorough analysis, the organisation decided to change the sourcing strategy with insourcing the most critical building-related activities and changing the procurement strategy from one integrated FM contract to three bundled and seven single-service contracts. The concept of right-sourcing is discussed.

The research is based on a study of one public organisation, which limits the possibility to generalise the results. However, it provides detailed insights into the strategic sourcing process in FM, which can give inspiration for practitioners and further research.

The paper throws light on a strategic sourcing process which is rarely available in public because of confidentiality considerations, and it provides the first evaluation of the new ISO standard from 2016.

The aim of this paper is to go beyond the “What to outsource” and “To Outsource or Not” debate. Recognizing outsourcing as a fast growing reality that firms have to depend upon, the paper concerns itself with optimal management of outsourcing arrangements through the practice of “outsourcing capability”. It argues that outsourcing failure can be mitigated if organizations see outsourcing as an “ongoing activity” to be managed as opposed to treating it as a one-time opportunistic “act”.

Based on the review of existing literature and drawing upon recent instances of outsourcing successes and failures, the paper develops a conceptual framework which divides various organizational processes into four different classes. It delineates the varied aspects of “outsourcing capability” that a firm would need to use to manage these varied class of processes as and when they are outsourced.

There is no “one-size-fits-all” approach to managing outsourced processes. Different processes require emphasis on different aspect of outsourcing capability if outsourcing is to deliver the envisaged benefits.

The traditional focus in outsourcing literature has been on the core/non-core process with the recommendation to keep core processes in-house and outsource the non-core processes. This distinction can be transitory and hence detrimental in the era of hyper-competition. I argue that firms should instead focus on developing and refining aspects of “outsourcing capability” relevant to the varied class of processes that they wish/need to outsource.

The purpose of this paper is to find how mature the Polish commercial production companies are in their information technology (IT) sourcing practices, what they do, the practices that are successful, the challenges experienced and the outcomes.The paper presents and critically evaluates the results of a study of IT outsourcing management processes in selected industrial enterprises operating in Poland. Dynamic business contexts, globalisation and advances in IT make the development of IT sourcing models challenging in both theory and practice. This paper examines the principles and practice of sourcing IT and business processes in Poland, a country much under-represented in the literature. Little research has been conducted on the strategic rationale behind IT sourcing decisions, the resulting challenges and the potential or actual consequences of such decisions. This paper addresses these gaps in the understanding of IT sourcing processes by way of examining the types of sourcing models and solutions among manufacturing companies operating in Poland, and by identifying the most problematic and critical factors in effective IT sourcing collaborations. The outcomes are assessed against findings from the broader empirical outsourcing literature, and lessons are drawn for Polish client firms and those in similar economies.

A survey methodology of a limited number of organisations in Poland was used. The study was designed to address the process of managing IT sourcing relations in production companies operating in Poland. The main objective of the study was to formulate working hypotheses to be used in further research on the sourcing models used in the IT sphere. Additionally, the study was designed to provide information on: the potential respondent reactions to the research problem, the understanding of the notions and terms used in the survey questionnaire and the evaluation of the research instrument itself.

Organisations (and their employees) are generally well aware of their IT needs, and that they select quite well providers that suit their particular requirements. In their selection processes, organisations carefully consider not only the providers’ experience and the range of services on offer but also their flexibility in response to the client’s demands, the location and the trust formed in the course of previous cooperation. Communication between the parties typically takes the form of telephone conversations and e-mails. The majority of respondents reported more than one type of problems faced in the course of outsourcing. Problems concentrated in the areas of communication (52 per cent) and organisation (48 per cent), followed by difficulties in enforcing the terms of the contract.

It is a selective sample, focuses only on production companies and does not look at the offshore outsourcing market that has grown up in Poland, but rather what domestic polish organisations do in their sourcing practices.

The organisations still struggle with the organisation and management of relations with their external service providers while getting reasonable results. They have much to learn from the published literature on managing the outsourcing life cycle.

There is a need for better inter-organisational cooperation.

Poland is very underrepresented in the outsourcing literature – there are no examples of surveys like this in the English literature.

The purpose of this exploratory study is to highlight the stages in the relationship which eventually lead to an integrated logistics alliance.

The stages involved in the evolutionary process have been explained with the help of concepts of mental models and knowledge-related asymmetries. The study has been justified by applying multiple case research design which involves examples of successful logistics alliances.

The analysis using case study approach provides a detailed overview how third-party logistics providers develop successful relationships with different industry firms over a period of time which eventually lead to innovations benefiting both the partners.

In the paper, a qualitative case study methodology has been adopted which is limited in nature when compared to quantitative approach. Nevertheless, the multiple cases discussed in the paper involve organizations from diverse sectors thus providing a holistic perspective and adding value to the current strategic alliance literature.

The complete understanding of the concepts discussed in this paper will help companies revisit their business strategies and identify areas of improvements in their current engagement practices with third-party logistics providers.

Many a time, relationships fail to develop into an alliance and research related to the attributes causing these failures might be limited. In the past, though many papers have talked about strategic alliances between third-party logistics providers and customers, little has been discussed about how such relationships evolve into successful strategic alliances.

The purpose of this paper is to propose a strategic conflict analysis, based on the graph model for conflict resolution (GMCR), that is applied to information technology outsourcing (ITO) in a real-world software development and implementation process in Brazil.

Because the idea of this study is to answer “why” the ITO conflicts occur and “how” they can be avoided, the case study methodology was adopted. The software GMCR II was used to analyze the interactions between an IT vendor and an IT client.

The results suggest that a lack of relational governance is a critical issue that could be handled to improve the interaction between those involved.

The main results are restricted to the case study and cannot be generalized. Moreover, a specific limitation of this paper pertains to the use of the GMCR and the consequent difficulty for IT vendors and IT clients to work with a large number of actions and to set preferences for several states of conflict.

The strategic analysis of outsourcing conflicts provides a holistic view of the current situation that may assist the client and vendor in future decisions and identify guidelines to ensure successful ITO. Therefore, this paper provides an effective guide for clients and vendors to better manage conflicts and establish a contingency vision to avoid such disputes.

The ITO conflict is analyzed using the GMCR, considering both perspectives of the outsourcing process (vendors and clients).

The purpose of the research is to shed light on the question of how elements of a partnership system interact to provide a basis for an enhanced performance management framework.

A structured literature review is followed by a longitudinal case study (action research), which combines qualitative and quantitative analyses. Observations over time, documents such as contracts, joint agreements, meeting agendas and minutes, personal conversations and in‐depth interviews were mainly used, with quantitative measurement of operational and relational performance. For an in‐depth analysis of interdependencies, a systemic perspective based on an interaction analysis of relevant elements of the partner management system was adopted.

The paper draws upon real‐life data from service partnerships in the automotive industry. Combining a longitudinal multi‐dyadic approach with action‐based research makes it a unique opportunity to reveal insights into the development of performance‐based partnerships. The paper illustrates enablers, limitations, and conflicting circumstances in partnering highlighting the role of incentives and derives propositions for a comprehensive framework for a performance‐oriented partner management.

Owing to the limited number of case studies, this research is considered mainly exploratory. The presented case study is an essentially illustrative example of the implementation and development of performance‐oriented partnerships. The insights provide a better and deeper understanding of the dynamics of forming partnerships in reality, especially limitations and pertinent expectations regarding performance management in partnerships. There remains a need for further research for success‐related dimensions and antecedents of partnering concepts in a general industry approach.

The paper draws upon real‐life data from service partnerships in the automotive industry. Combining a longitudinal multi‐dyadic approach with action‐based research makes it a unique opportunity to reveal insights into the development of performance‐based partnerships. The paper illustrates enablers, limitations, and conflicting circumstances in partnering highlighting the role of incentives and derives propositions for a comprehensive framework for a performance‐oriented partner management.