2. Business management: This is the
capability to deliver products and services according to the agreement and the
business plans of both parties. If
either of the two parties is dissatisfied with the sourcing arrangement, this
will inevitably lead to the failure of the venture. Very often lawyers appear
to forget this and try to fully exploit their power position at the expense of
the provider. However, this tactic erodes the relationship and undermines the
sourcing result. As the contract manager of an Australian public sector agency
noted: “Providers have to make a reasonable margin to stay in business. You
don’t want them to lose money because the worse their business gets, the worse
your business gets.” (Feeny et al. 2005:44)
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