Incentives Build Relationship Outsourcing
- Topics:
- Incentives and Compensation
- Tags:
- Business Operations,
- Everest Group,
- Incentive,
- It Operations,
- Outsourcing,
- Outsourcing & Subcontracting,
- Outsourcing Company,
- Sales,
- Sales Force Management
- Source:
- Everest Group
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Overview: Price is one way through which an outsourcing supplier differentiates itself during the selection process. Building incentives into the proposal is another. The concept is described with the example of EDS. The lessons taken from the review is- relationship incentives help create a long-term relationship for suppliers because they continue to create value in the latter years of the contract- outsourcing is a good way to bring change to an organization. Usually systemic change is too difficult to accomplish in-house- reciprocal business practices allow both buyer and supplier to pool their talents to create a joint venture that leverages the skills of both- relationship incentives help bring new ideas to market because the outsourcer is willing to shoulder some of the risk for a portion of the profits- gain sharing helps an outsourcer reengineer a company's business processes and share in the savings.
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Format: HTML | Date: Jul 2000 | Pages: 1
