The client perspective: Vendor selection strategy, retained management capabilities, and legal issues

Abstract

One key factor in achieving success in global sourcing arrangements is the quality of the client-supplier relationship. Similar to marriage between two people, a sourcing strategy should be geared toward selecting the most suitable partner. Selecting the right vendor is critical to maximizing the benefits and minimizing the risks associated with the venture. In this chapter we will review the major considerations during the vendor selection process, such as:

• the key criteria for evaluating vendors;

• the number of vendors involved in one sourcing contract;

• which capabilities are needed to be developed and retained;

• the critical legal issues involved in outsourcing and offshoring;

• the role of the contract in managing risk.