Summary
Summary of the article ‘Vested outsourcing: a flexible framework for collaborative outsourcing’
- Course
- Institution
Summary of the article ‘Vested outsourcing: a flexible framework for collaborative outsourcing’
[Show more]
Seller
Follow
JonasKlein
Content preview
Vested outsourcingSamenvatting ‘Vested outsourcing: a flexible framework for
collaborative outsourcing’
The idea of vested outsourcing is to establish a systematic, collaborative outsourcing
relationship in which companies and service providers become “vested,” or mutually
committed to each other’s success, creating a long-term win-win relationship based on
achieving mutual determined goals. The model moves away from the conventional,
transaction-based and risk-averse approach to contracting. The goal is to craft collaborative
business-to-business agreements that create a set of working rules that can facilitate
successful and long-lasting business relationships based on mutually desired outcomes.
Achieving that win-win optimization through new levels of collaboration, trust and shared
value under a vested outsourcing model happens when the company outsourcing and the
service provider/supplier understand, commit to, and adopt the five principles or tenets of
vested outsourcing, which are:
1. Outcome-based vs transaction-based business model
A transaction-based approach cannot produce perfect market-based price
equilibrium in variable or multidimensional business agreements. For this reason,
organizations are exploring other types of sourcing business models, including
outcome-based approaches, which is the basis of vested outsourcing.
Element 1 - business model map
This first step is to understand the business at hand and document an
outsourcing business model.
Element 2 - shared vision statement and statement of intent
With the business model understood and mapped, the parties then work
together on a joint vision that will guide them for the duration of the vested
outsourcing relationship.
2. Focus on the what, not the how
The main difference between a conventional approach and the vested outsourcing
approach is that under the latter approach, the company that is outsourcing specifies
what it wants and moves the responsibility of determining how the work gets
delivered to the service provider
Element 3 - statement of objectives/workload allocation
Depending on the scope of the partnership, the company transfers some or
all of the activities needed to accomplish agreement goals to the service
provider
3. Clearly defined and measurable desired outcomes
Establishing desired outcomes and the statement of objectives (SOO) are necessary
first steps on the road to a vested outsourcing agreement
Element 4 - clearly defined and measurable desired outcomes
To have an effective, successful vested outsourcing relationship, the parties
must first work together to define and quantify their desired outcomes
Element 5 - performance management
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller JonasKlein. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $3.26. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
75323 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now