Licensing

Strategic sourcing can be achieved through a licensing model. The enterprise customer may own a membership list, a trademark or other intellectual property that can be commercialized for profit.

  • Non-Profits. The enterprise could be a not-for-profit corporation, hoping to make some money from the services or merchandise sold to its members in support of the non-profit’s mission, whether as a membership association, a university or a professional trade association.
  • Publishing and Membership Services. Alternatively, the enterprise could have a globally recognized trademark and wants to outsource operations such as membership services, Internet and print publishing and the design, manufacture, marketing and distribution of merchandise. In each case, a licensing model could strike a balance between control and financial commitment and allocations of risks and rewards.

Like concession contracts in public-private partnerships, licensing models represent shift operational and financial investment risks to the services provider.

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