A framework of business process outsourcing relationship evolution model

The benefits of outsourcing are concluded in terms of lowering costs, better operational quality system and bridging of the skills deficiency. All these benefits depend on how well the relationship is forged. The objective of this study is to explore the evolution process of the relationship with the growth of outsourcing vendor and client. Based on literature review, a three-stage evolution model is put forward, namely, the cost stage, resource stage and partnership stage. Each stage has the specific characteristic, thus the partners share the common focus, different with the other stages. The proposed model can help clients and vendors in outsourcing relationships understand both current state and future direction of development in their relationship.