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January 8, 2016

Back to Basics – SLA

How is a SLA contract constructed? What differs SLA from KPI? How to properly construct a catalogue of outsourcing services? What penalties are worth incorporating in an outsourcing contract? With this article we start a cycle of educational publications by Piotr Rutkowski, Managing Partner of SourceOne Advisory.

Outsourcing already became a commonly used business tool, thank to which managers-optimize business processes of the enterprise. Does it mean we have an in-depth knowledge how to optimally and safely implement outsourcing in our own companies? On the side of the suppliers – certainly yes. On the side of buyers – not necessarily.

Talking from my professional [...]

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July 20, 2015

Formal vs Relational Governance


Successful IT outsourcing partnerships rely not only on formal governance through contracts but also on relational governance through interpersonal relationships between the outsourcing partners. An increasing stream of research has acknowledged that these two forms of governance are interrelated and can both substitute and complement each other. But is that the end of all we know? No. Based on my work with Eleni Lioliou, Angelika Zimmerman and Lan Gao*,  we now know a lot more about the power and role  of relational governance including about the pyschological contracts established between parties, and this will be the subject of Part 1 of this article. And in [...]

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July 15, 2015

Relational Governance and Collaborative Outsourcing

For quite some time now, there has been much talk about the need for a more collaborative approach in outsourcing. In this context, the concept of relational or collaborative contracting often appears. Because of the strong business reasons to use such contracts in outsourcing deals, I think a few questions and answers on this concept would be useful for Outsource’s readers.

What is a relational contract?

A relational contract can be defined as a written contract where a continuously efficient and effective commercial relationship between the parties is given priority before the negotiated deal. The relationship is efficient when the parties cooperate without friction [...]

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