Managing Culture as Critical Success Factor in Outsourcing

Outsourcing was originally confined to peripheral business functions and mainly motivated by a cost saving logic, but has now developed into a routine strategic management business model that affects not only peripheral functions but impacts the core business of organizations. Industry research typically indicates that over 50% of firms believe that organizational culture fit is a key criterion in the selection of vendors for outsourcing; showing the need for outsource service vendors to become partners with their customers and to become an extension of them.