Strategies for Successful Supplier Relationship Management(SRM) in the SI Industry

Kyung-Jin Cha, Zoon-Ky Lee, Joon Seub Cha

Abstract


In the system integration (SI) industry, improving relationships with outsourcing partners is one of the key challenges faced by SI companies that aim to increase productivity and reduce costs. In the SI industry, over 80% of project development work is performed by these outsourcing partners. Hence, large SI companies focus on fostering high-performing partners through improved cooperation and mutual relations. However, in the SI industry the existing process of managing outsourcing partners is unable to advance to the level of long-term partnerships due to inadequate information sharing and communication in the process of selecting and assessing a potential and existing partner.

Based on the theory of partnership, this study identifies the success factors for new strategic partnerships. Further, this study presents a model for assessing partner companies to promote increased productivity and improve the relationship between an SI company and its partner. In addition, this model is used to assess partner relationships for a well-known SI company “A”. This study explores the feasibility of a new framework model.


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References


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