The Davies Consulting white paper explores how digital transformation has reshaped outsourcing, shifting it from cost-saving replication to transformational partnerships. Customers now expect seamless, multi-channel, 24/7 service, driving outsourcers to adopt AI, RPA, and automation to enhance efficiency and experience. Traditional outsourcing focused on transactions and cost-cutting often created friction with service quality. In contrast, modern “transformational outsourcing” aligns incentives through outcome-based contracts, shared efficiencies, and risk transfer. Success requires strong governance, subject matter expertise, investment, and risk appetite. The paper outlines ten vendor management principles to ensure sustainable partnerships and maximize digital change.

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