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15 August 2009 · Article

Knowledge transfer: extending the value of outsourced relationships

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Companies have a significant issue to deal with when using external consultants or outsourcers for business processes, such as strategic sourcing. Organizations get great value from these relationships, but this value quickly degrades as most don’t have effective policies or procedures for ensuring that the knowledge generated from the engagement — such as how to buy certain complex categories or how to evaluate risk in your supply chain — gets transferred to the enterprise. As a result, the value of that activity is only temporary, as the company never gains the knowledge or skills to sustain the benefits and drive continuous improvement over time.
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\r\nKRIS COLBY, Ariba

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