The record speaks for itself: Successful outsourcing of information technology or other businessprocesses is hard work. The process of selecting a service provider with whom to build a long-term relationship is intense and critical to far-reaching aspects of corporate performance. Yet, there’s often a tendency to try to short-cut the process by taking a more sterile approach through benchmarking measures of cost and quality as a means of relationship-building. This is often attempted as part of a source-selection process and part of a price-renegotiation technique in mid-course. Benchmarking has a role, but the role is far less significant in a critical outsourcing relationship than one might use to make a decision on true commodity services. We will review the nature of a successful outsourcing relationship with emphasis on the appropriate use of benchmarking in that context.

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