Getting Innovation Via Outsourcing Contracts

Most client organizations expect that their providers will continually innovate or carry out some form of value-adding when there is an outsourcing contract. I write “some form” because a typical outsourcing contract does not specify what innovation is expected, let alone when it is to occur.
Most organizations are bitterly disappointed when there is no innovation, feeling that the provider has misled them or let them down. But when you examine a typical clause, you can see why it is so difficult to understand what the client expects.