Joint ventures for outsourcing
2 April 2012
Q: I know quite a lot about outsourcing, but someone has suggested my company considers forming a joint venture as a solution to one of our current projects. What are the pros and cons of joint ventures (JVs)?
A: Ian Russell, head of smartsourcing at Barclays Bank, writes: There are three main reasons to use a JV.
First, there is the need to retain some direct control over the operation - equity in the company and a seat on the board can ensure this. Second, outsourcing into an immature market may mean that existing suppliers are rare - a JV may be a way of...