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For Sourcing & Vendor Management Professionals

How To Implement Successful Innovation In Outsourcing Relationships

Differentiate Between Continuous Improvement And Innovation

April 10, 2012

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  • By Wolfgang Benkel
  • with Christine Ferrusi Ross,
  • Sean-Paul Mauro

Why Read This Report

This report outlines Forrester's solution for sourcing and managing IT services providers. It is designed to help sourcing and vendor management (SVM) pros develop the appropriate contractual terms while outsourcing IT services. Innovation is currently one of the most discussed buzzwords in outsourcing relationships. Many clients are changing their sourcing focus from cost reduction to more flexibility and agility in outsourcing. Of course cost always matters, but flexibility, agility, and technology progress in outsourcing relationships are becoming higher priorities. Innovation plays a very important role in this strategy, but providers and clients often have very different ideas about innovation within an existing outsourcing relationship. Providers talk about how innovative they are in their own operational environment (which often brings efficiency and cost savings only to the provider); however, clients are more interested in providers' innovation capabilities that will bring a demonstrable change and improvement to their business. We will discuss how SVM pros can ensure that they achieve the proper amount of innovation levels in their outsourcing engagements.

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Table of Contents

  • Many Outsourcing Relationships Miss The Basic Elements Of Innovation
  • Clear Prerequisites Make Innovation In Outsourcing Effective
  • Innovation Is Only Talk Until Clients Change Their Contracts

  • Innovation Needs To Be Addressed In An Early Phase Of Sourcing
  • Supplemental Material
  • Related Research Documents