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Beware of the Winner's Curse in Outsourcing

Filed in archive Outsourcing Issues by Carol Kendrick on September 20, 2006

Beware of the Winner's Curse in Outsourcing
CEOs who are in the process of evaluating their outsourcing transactions should go beyond the "physicallinks resources" in the company which includes people and technologies.

This statement could be found in the research-based whitepaper done by Leslie Willcocks, a Technology professor. According to the research, CEOs should be careful in their outsourcing partnerships and should take into consideration into the way these physical resources could turn into meaningful capabilities like leadership, behavior management, governance and process improvement.

Being unable to do so would only lead to the "Winner's Curse" in outsourcing that most companies fall for. On the other hand, the professor also mentioned three strategies which could help CEOs from falling in this kind of trap. These strategies include:
-Delivery Competence
-Transformation Competency
-Relationship Competency


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