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REDEFINING OUTSOURCING: THE VALUE MODEL

 

The New Outsourcing Model

In the New Outsourcing Model, the customer looks at the outsourcer as a long-term asset that is a source of ongoing value to the company. As an assets, time and resources are dedicated to managing the relationship and maximizing its value. The customer’s resource are held accountable for extracting value from the outsourcing relationship. The intent is to keep the relationship for as long as it bring value—understanding that over time new parties and new alliances may need to be formed as technology and organizations change. There is an interdependency between the two organizations—change in one affect the other. Therefore both parties must understand the cost drivers of the two infrastructures and coordinate changes so as not to drivers additional costs into the process. Customer and outsourcer must behave as an integrated supply chain rather than win/lose adversaries.