Innovation within outsourcing relationships: Contemplation of Luhmann's theory

Outsourcing parts of ICT-related activities to third parties is maturing. Since the late eighties of the last century, companies are looking for cost reduction and competitive advantage using this strategy. Since the outsourcing relationships also matures, innovation is becoming more and more part of the contract. The most difficult way of innovation is within that relationship. To be successful, input is required from both the supplier's side as well as the client's side. If systematic collaboration is performed, it changes the structure of organizations. That is, organizations adapt to each others strategy and each others corporate culture. Luhmann's theory of autopoietic systems will portray the difficulties of aligning decisions and decisions premises when two companies are involved, especially concerning innovation within outsourcing relationships. This paper provides a new view of outsourcing and innovation within outsourcing relationship, using Luhmann theories.