ABSTRACT

While it appears that outsourcing client organizations have a history of outsourcing experiences to draw on, the problem is change. Third-generation outsourcing companies have often changed what they outsourced and how each time around, finding themselves in a relatively new situation, having to learn anew. Furthermore, if their knowledgeable people had left and not been replaced, organizational learning could not occur sometimes until the fourth-or fifth-generation deal. What more can client organizations do to mitigate such risks? Our research found that the key is to never lose sight of the fundamentals.