Offshore Innovation: Yesterday's Expectations Are Today's Table Stakes

Though offshore vendors routinely boast about their innovation capabilities, clients tell Forrester a different story: Their offshore vendors are still unable to generate innovation at the level and frequency they expect. To explore the gap between vendor offerings and client expectations, Forrester conducted a series of interviews with both offshore suppliers and their clients. We found numerous examples of offshore vendors who are innovating and clients who are benefitting from these innovations. It was also clear, however, that these innovations do not happen without an investment from both vendors and clients, and accessing the innovation capabilities of your suppliers requires a high level of maturity from the vendor and client. Sourcing and vendor management (SVM) professionals looking to generate more innovation in their services relationships need to familiarize themselves with the characteristics of innovative suppliers, or risk missed commercial opportunities.