From research to relevance: The evolution of the Vested outsourcing model

Kate Vitasek, Andrew Downard and Karl Manrodt
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Kate Vitasek: Kate Vitasek, Faculty, USA
Andrew Downard: Founder, Collaborative Impact Advisory, Australia
Karl Manrodt: Professor of Logistics, Georgia College & State University, USA

Journal of Supply Chain Management, Logistics and Procurement, 2025, vol. 8, issue 1, 23-42

Abstract: For over two decades, the University of Tennessee has researched better outsourcing methods, leading to the development of the Vested outsourcing business model. The Vested model combines a formal relational contract with an outcome-based business model to create a highly collaborative win–win contract where both the buyer and service provider have a vested interest in each other’s success. Since the model was first introduced in 2010, it has been used by over 150 organisations. The win–win approach has proven to deliver lower cost and better service for companies outsourcing while enabling service providers to increase their profit when they create value for their customer. This paper outlines the evolution of the Vested model from research to the relevance it is having on today’s outsourcing practices. The paper provides a high level overview of the model and provide a case study of the Vested model in practice. This article is also included in The Business & Management Collection which can be accessed at https://hstalks.com/business/.

Keywords: Vested; Vested outsourcing; win–win; relationships; supplier trust; EY; outcome-based contracting; relational contracts; ISS (search for similar items in EconPapers)
JEL-codes: L23 M11 (search for similar items in EconPapers)
Date: 2025
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