During an outsourcing agreement the vendor becomes polluted with what is considered to be very proprietary intellectual property, says Gene Slowinski, director of strategic alliance research at the graduate school of management at Rutgers University. When a vendor works with a customer in an outsourcing relationship, the customer tells the supplier many things that are protected by patent, information protected by trade secrets, and vital company knowledge that is retained by the employees within the corporation. The customer and its new business partner the vendor must discuss these issues or it can be very damaging to both sides.
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