chapter  7
14 Pages

From Cost to Value Creation in Outsourcing and Facilities Management Relationships

Earlier in this book we described the impact of complexity and culture on the management of business-to-business relationships. In particular, we mentioned the need to adopt specific, collaborative networking strategies in order to adapt most readily to changing opportunities. We also examined the elements that constitute the success drivers: relationship management, collaborative innovation, partnership quality and value creation. We described relationship dynamics spirals as a means of understanding the key organisational performance drivers. This chapter brings together aspects of these topics in discussing a prevalent conundrum of today’s alliance management: how are global organisations evolving outsourcing and facilities management relationships from cost reduction to value creation?