Yin & Yang strategic outsourcing

12.09.2006

He added that relationship-building is critical in strategic outsourcing. "Working as a team with an outsourcing partner is more than just SLAs and contractual management," said Siu. "Continual discussions are essential. Both parties have made very heavy investments and it is to mutual benefit that the relationship flourishes."

Beyond vendor-client relationships

Chan agreed. She said HP's relationship with CargoSmart is not much different from a marriage.

"There are, of course, ups and downs in this relationship. But it's the trust and common belief between the executives that make this relationship a successful one," she said.

Chan explained these common beliefs include staff management and corporate culture, which often determine the trust in this relationship.