ABSTRACT

Shared risk is often a model that suits a new company looking to make an impact in the market with a specific large information technology services company because many large or more established players find it difficult to show this degree of flexibility due to shareholder or director-level squeamishness. If they are determined to establish a strategic alliance with a specific consultant, systems integrator or outsourcer, it may be expedient to elevate that partner to preferred bidder status in certain situations in order to create a lasting impression. Large software and hardware companies are often reluctant to do this as it can compromise their wider channel integrity; it is always noted and remembered by them if they win business through a unique level of endorsement. To navigate the political mine field, many original equipment manufacturers get around this concept with tiered support or discounts based on deal registration models.