gainsharing, TPI

Making Gainsharing Work

Making Gainsharing Work

How to Create, Cultivate and Maintain the Business of Innovation in an Outsourcing Arrangement

By Dinesh Goel, Director, Global Service Delivery, TPI

Phrases such as “gainshare,” “skin in the game,” “risk-reward structures,” and “promoting and encouraging innovation” are often heard in the context of outsourcing arrangements these days. In reality, only a handful of relationships have successfully reaped the benefits of gainsharing arrangements. There are many reasons why few such arrangements have worked, ranging from poorly structured contracts, to relationship and delivery problems, to the behavioral aspects of the client and the service provider.

Outsourcing clients have been disappointed at the level of innovation delivered through their relationships as indicated by a poll conducted by TPI in the recent past.

Apart from yielding direct benefits, a successful “innovation-driven” dynamic goes a long way in cementing the relationship between the client and the service provider.

Based on TPI’s extensive global experience with helping clients structure outsourcing contracts, this paper discusses the nuances of crafting such an arrangement in a pragmatic manner that offers a higher probability of success. In addition, the paper will define gainshare arrangements, why they are important, and how organizations can position themselves for success.

Click here to download the full white paper.