What Providers Say about Managing Outsourced Services

Abstract

In this chapter, we continue to share in detail what providers have been saying to us about clients during the past two decades — the things they wish clients would know and do, as well as some things they wish clients didn’t know or do. In Chapter 2, we covered the first ten statements providers make about establishing the outsourcing arrangement. These included statements about the ideal potential customer, outsourcing strategy, and contract negotiations. In this chapter, we cover the last ten statements — statements 11 through 20 — providers make about the way clients should or should not manage outsourced services. These include statements about retained client capabilities and management, provider capabilities and management, relational governance, and outsourcing outcomes. In Table 2.1 (see Chapter 2), we listed 20 statements providers commonly make and indicated whether the statement is supported by research, not supported by research, or has not been studied (or studies have produced mixed results). Among the 20 things providers say, 12 are supported by academic research and would actually benefit the client if they followed the providers’ (and researchers’) advice. In this chapter, we show that only two of the remaining ten statements providers make are not in the clients’ best interests.