Knowledge Management

In an outsourcing relationship, the vendor and its clients need to transfer knowledge on a continuous basis. Relevant approaches to outsourcing relationships from the knowledge management literature include intellectual capital management and business process management, as presented in this chapter. According to Quinn (1999), executives increasingly understand that outsourcing for short-term cost cutting does not yield nearly as much as outsourcing for longer-term knowledge-based system or strategic benefits such as greater intellectual depth and access, opportunity scanning, innovation, reliability, quality, value-added solutions, or worldwide outreach.