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Runner-up for Best Partnership: Entering a highly competitive market with a new product can be an enormous resource challenge. Microsoft discovered outsourcing to VMC Consulting was the best solution for this challenge when it launched its Xbox® video game system.

Runner-up for Most Transformational Relationship: When retail giant 7-Eleven began outsourcing its IT functions to ACS, efficiencies and costs were the drivers. When the company's objections changed to include business transformation, it tapped ACS for the additional scope because of its partnership attitude.

Runner-up for Most Innovative Value Creation: Effective communication is crucial to success in outsourcing, but it seldom happens automatically between two different corporate cultures. This is the story of how Sears and Hewitt Associates established change management techniques to ensure proactive communication, as well as an innovative program for continual process improvement.

Runner-up for Best Process Improvement: The Portland School District learned first hand the difference in outcomes between outsourcing and contracting. Working with its provider, Portland Habitation Center Inc., it made dramatic improvements and demonstrated important life lessons for its students.

Runner-up for Most Collaborative Relationship: When Geographic Data Technology wanted to enter a new market, it turned to outsourcing to obtain the necessary resources. Its highly collaborative relationship with RMSI changed the buyer's business processes so it could compete in the new market. The result: outcomes far greater than they imagined.

Runner-up for Best Refreshed Relationship: As a buyer's business environment evolves over time, the original service level agreements need to be re-examined to make sure they are still appropriate for new objectives. Here's how Sovereign Bank and Trammell Crow Company jointly undertook to refresh their relationship to ensure it would continue to be mutually beneficial and produce the desired value.

Runner-up for Best First Steps: When ServiceMaster outsourced its benefits administration to Hewitt Associates, it transformed an inefficient process and implemented improvements without a snag. Their success is due to early decisions in provider selection and management plans - best first steps.

Breaking News Commentary

The Hewitt-Exult Merger: What It Means for HR Outsourcing: Last week Hewitt announced it was merging with Exult. Peter Bendor-Samuel explains what it means for the HR outsourcing space and why it will be good for buyers.

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