Managing Innovation During Outsourcing Engagements- Do Contracts Harm Innovation ?

Outsourcing firms tend to market themselves as partners in innovation, and firms consider adopting an out- sourcing strategy as a way to attain competitive edge. While outsourcing is a promising approach, it can also be a risky endeavor, as it may deter the firm’s inherent ability to bring innovative products to market. The purpose of this Executive Update is to challenge the assumption that outsourcing is detrimental to a firm’s inherent ability to bring innovative products to market in the long run.