Outsourcing From
The Vendor’s Perspective
How does an outsourcing firm survive and grow? Obviously,
they have to build good relationships with customers. Here are some other
factors behind outsourcing:
-
The vendor may have unique ties with the government in a
country.
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There may be useful family and other ties involving managers
in the outsourcing firm.
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The vendor has unique expertise and knowledge about a
particular country.
Most vendors want to build long-term relationships because of the
cost of starting up the relationship and building ties. This is especially true
in some countries where cultural factors dictate that it takes substantial
elapsed time to become familiar with another firm.
Technical vendors see your project as a means to build their
capabilities to market to other firms, including your competitors. You should
always assume in an international project that the firms will immediately begin
to market to your competitors after they sign a deal with you. For political
vendors, the situation is different. You will likely select the vendor based on
political and cultural factors. This evaluation will be very subjective.
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