Relational Outsourcing

Outsourcing of business operations is a growing trend in the U.S.  In-house employees are replaced by a firm which handles the business using its own staff. Such agreements, writes Dennis F. Penepacker of Chicago’s Meyer Brown Rowe & Maw LLP, require the closest kind of relationships between the parties. He argues that neither the command-and-control mechanisms of in-house operations nor the arms’-length contacts typical of ordinary supplier contracts are appropriate.

[Frank Snyder]