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Value Co-Creation Approach for Improving Performance of Outsourced Projects
Abstract
This chapter uses value co-creation approach to improve performance of contracted projects. Without value co-creation, there are always two projects that are performed separately: one is the contractor's project, and the other one is the customer's project, which consists of all the activities for initiating, evaluating and specifying the project as well as controlling and supporting it. These activities form a project, which is often disregarded as a project. Both customer and contractor regard the other side activities as external tasks under the responsibility of their owner. In effect, the two projects are interrelated and form a unified integrated project. The chapter shows that the unified project behaves very differently than either side expects; and its critical activities are different from those of the separate projects. In addition, there are great strategic benefits that are product of the value co-creation approach and potential synergy which are discussed in the chapter.
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