Building outsourcing relationships across the global community: the UPS–Motorola experience

Abstract

The United Parcel Service (UPS)–Motorola case study revolves around two major areas of information technology (IT) management: IT as a competitive tool and global outsourcing of IT projects. It provides an opportunity to become familiar with the decisions and actions taken by UPS to assure their competitive advantage in the turbulent courier services industry. In the IT outsourcing area, the case addresses managerial and technical issues associated with outsourcing IT projects across the global community. The case presents the specific factors that made this outsourcing project successful and discusses the development of the outsourcing relationships between UPS and Motorola (Israel), from initial negotiations to the creation of a strategic alliance between the two companies. A major point in this case is the gradual development of trust between the two sides, trust that led the two firms from being committed to a contract to becoming strategic partners.