The Changing Outsourcing Environment Requires New Governance Strategies

Conventional wisdom says that customers should never skimp on outsourcing governance, but what does this simple admonition mean in practice? Far too many companies expect a higher level of service from their providers but fail to manage the relationship in a way that sets clear responsibilities — and sets their most strategic suppliers up for success. Forrester finds that clients in leading organizations invest in their governance programs and constantly seek to adopt best practice strategies from mature sourcing practitioners. These investments are timely given the important changes taking place in the services industry: the combined impact of multisourcing, outcome-based engagements, and cloud services are changing conventional governance approaches. Outsourcing clients can improve their chances for success by embracing six key governance strategies that set the stage for win-win relationships.