Half of all outsourcing relationships fail within five years, and Maartje van Krieken says the reason almost always comes down to one bad decision made at the very start.

The founder of The Chaos Games Consulting and host of The Business Emergency Room makes the case that outsourcing doesn't usually fail because of a bad vendor or bad luck. It fails because companies sign the deal before they've done the work to set it up for success. Take Nike. The company runs a fifty-billion-dollar business without owning almost any factories, but that's not really the lesson here. The real lesson is what Nike held onto: design, brand, and hands-on oversight never left the building. That's the part most companies skip.

When you outsource a problem you never fixed, it doesn't go away. It just gets harder to see. Maartje breaks down the patterns that show up again and again: nobody clearly owns the relationship, the two companies never actually figure out how to work together day to day, and there's rarely any plan for what happens if things fall apart. That last one is a big deal. Seventy percent of companies have pulled outsourced work back in house over the past five years, yet many of them never planned for that possibility going in. So before signing anything, she suggests asking a few honest questions. Do you know exactly what success looks like? Is someone responsible for this relationship? Would you recognize failure within ninety days? How would you walk away if you needed to? And what are you keeping for yourself?

Outsourcing can be one of the smartest moves a business makes, but only if it's treated as ongoing work rather than something you set up once and forget. She wraps up by recommending Michael Corbett's The Outsourcing Revolution, echoing her main point: outsourcing done right builds real strength, and outsourcing done wrong turns a fixable problem into a much bigger one.

Episode Breakdown:

00:00 Why Half of All Outsourcing Relationships Fail

02:54 The Shift from Cost-Cutting to Strategic Outsourcing

05:50 What Nike Got Right About Outsourcing

09:07 Common Pitfalls That Sink Outsourcing Deals

11:55 Five Questions to Ask Before You Outsource

24:03 Building an Outsourcing Exit Strategy That Works

Connect with Maartje van Krieken:

Connect with Maartje on LinkedIn

Visit The Chaos Games Consulting website

Visit The Business Emergency Room website

Subscribe to The Business Emergency Room on YouTube

Subscribe to Maartje’s Substack

Host Maartje van Krieken is a crisis strategist and decision-making expert who thrives in high-stakes business environments. Combining disaster management training, hands-on experience in global industries, and leadership skills honed as a seasoned sailor, she helps businesses navigate chaos with precision. Whether tackling transformation, scaling challenges, or leadership bottlenecks, Maartje delivers actionable insights to turn turbulence into traction.

Podcast production and show notes provided by HiveCast.fm